Cipla Block Deal Worth ₹2,110.76 Crore; 1.39 Crore Shares Exchanged in Multiple Block Deals

Cipla Ltd., a name synonymous with quality pharmaceuticals, has been at the forefront of innovation and healthcare solutions since its inception. Founded by the late Dr. K. A. Hamied and currently led by Dr. Y. K. Hamied, the company has carved a niche globally with a robust portfolio and diversified market presence. On December 2, 2024, Cipla witnessed significant market activity, underlining its prominence in the pharmaceutical sector.

Block Deal on December 2, 2024

On December 2, 2024, Cipla witnessed a major block deal on the NSE, with 1.39 crore shares (1.72% equity) exchanged, amounting to a transaction value of ₹2,110.76 crore. While the buyers and sellers remain unidentified, this activity underscores Cipla’s high market interest and liquidity.

Stock Movement

• Intraday High:  ₹1,548.50 on NSE.
• Current Trading Price: Rs 1,524.20 (down 0.66% at 9:27 am).

Key Highlights of Cipla’s Operations

1. Business Model and Product Portfolio

Cipla specializes in manufacturing formulations and Active Pharmaceutical Ingredients (APIs), with formulations contributing to over 97% of its FY24 revenue.

• Product Range: Cipla boasts a portfolio exceeding 1,500 drug variants, serving diverse therapeutic areas like anti-infective, cardiac, gynaecology, and gastrointestinal segments.
• Global Reach: Cipla operates across 78 markets, showcasing its international footprint and market adaptability.

2. Financial Snapshot of Q2 FY24

Cipla delivered a solid performance in the July-September quarter of FY24, reflecting its operational efficiency and market positioning.

• Net Profit: A 15% YoY growth, reaching  ₹1,303 crore.
• Revenue Growth: Operating revenue rose to  ₹7,051 crore, up 5% YoY.
• EBITDA and Margins: EBITDA increased by 8.7% YoY to  ₹1,885.5 crore, with a margin of 27%, highlighting effective cost management.

3. Regional Performance Highlights

• North America: Sales climbed to $237 million, a 4% YoY increase, driven by the differentiated product portfolio.
• India: Domestic business grew by 5% YoY, with the Branded Prescription segment outperforming in chronic therapies.
• Consumer Health: This segment showcased robust growth, surging by 21% YoY.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.