Cipla Ltd a fair push in Q2. The firm’s revenues were a step ahead of the Street’s estimates. Cipla’s margin profile has also got a lift despite some of its sales expenses increasing sequentially.
The Cipla stock, a big gainer in the pharma rally due to the lockdown, is up about 63% from its pre-covid highs. But analysts could still raise earnings due to further cost savings and a pick up in US revenue.While covid-19 drug sales comprise about 5% of overall sales, there has also been an improvement in chronic and hospital sales.
Trade generic sales have picked up too.The only hitch in the domestic market is Cipla’s acute category sales remain in the slow lane expectedly due to better hygiene levels.