Cipla promoter group sells 2 53% stake to generate liquidity businesstoday.in - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from businesstoday.in Daily Mail and Mail on Sunday newspapers.
Rise in input costs, inventory write-off, and pricing pressures led to a drop in gross margins.
Higher competitive pressures led to cuts in operating profit margins and earnings estimates for FY24 and FY25.
Most brokerages have a neutral or a reduce rating on the stock on account of valuations.
India, once the pharmacy of the world , is struggling to establish itself as an elite player due to poor manufacturing practices that have led to deaths in some parts of the world, including children. The deaths of children in the West African nation of Gambia in 2022 and the deaths of 65 children in Uzbekistan last year have highlighted the lapse in the quality of drug production in certain India-based pharmaceuticals.
Pharma major Cipla has generated considerable interest from private equity players. What makes it such an alluring prospect, and what does the future hold for this storied company? - Issue Date: Oct 29, 2023
According to analysts, the sale of Glenmark Life could impact the profitability of Glenmark Pharma in FY25 but lower interest payments could offset the impact. ICICI Securities said the company will use the proceeds to clear its outstanding debt of 4,340 crore as of FY23 but the transaction is likely to result in an earnings cut of 5% for FY25. The brokerage has a sell rating on the stock with a price target of 660.