Prior to this raise, the state-run insurer held a 5.025% stake in Cipla which represented 4.06 crore shares. The 2.03% stake purchase accounts for an additional 1.64 crore shares.
The announcement was part of Sebi’s disclosure requirement for a person or entities holding more than 5% shares in a listed company.
Shares of Cipla were trading 0.35% lower at Rs 1,525.90 on the NSE amid lackluster Monday trade where the benchmark indices Nifty and the BSE Sensex slipped in the red after hitting fresh lifetime highs, respectively.
LIC’s buying of Cipla shares comes on dips as the pharma stock has given negative 1% returns over a 1-year period. The stock is currently trading below its 50-day simple moving average of Rs 1,538 while managing to hold above its 200-SMA of Rs 1,510, according to Trendlyne data.
The company reported a 3.7% increase in its September quarter consolidated net profit to Rs 1,351 crore versus Rs 1,303 crore in the year ago period. The total revenue from operations in the quarter under review stood at Rs 7,858.4, up 9% over Rs 7,241.6 crore in the corresponding quarter of the last financial year.
Brokerage firm Sharekhan, in a recent note, recommended a ‘Buy’ view on Cipla shares. The stock was recommended at a price of Rs 1,522 for a target of Rs 1,726, implying a 13% upside.
Also Read: Sharekhan bullish despite pharma’s underperformance; backs Cipla, Lupin & 3 more for up to 16% gains
(Disclaimer: The recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times.)