Recommendations from Pharmaceuticals & computer software Sectors
The scrips in this column have been recommended with a 15-day investment horizon in mind and carry high risk. Therefore, investors are advised to take into account their risk appetite before investing, as fundamentals may or may not back the recommendations.
CIPLA LTD
CMP - ₹ 968.35
BSE CODE 500087
Volume 2,35,556
Face Value:₹2
Target ₹ 1,010
Stoploss ₹ 940 (CLS)
Cipla Limited mainly develops medicines to treat respiratory, weight control, arthritis, diabetes, cardiovascular disease, depression and other medical conditions. The company works towards ensuring access to high-quality and affordable medicines to support patients in need. Focusing on the quarterly performance of the company, it recorded net sales of ₹ 5,442.86 crore, a 5.6 per cent in Q3FY22 jump from ₹ 5,154.17 crore in Q3FY21. Operating sales in Q3FY22 stood at ₹ 1,322.26 crore as compared to ₹ 1,317.82 crore in Q3FY21. The net profit jumped 0.86 per cent in Q3FY22 to ₹ 758.95 crore as compared to ₹ 752.51 crore in Q3FY21. Cipla plans to launch four to five new drugs and injections with patents over the next 2 to 3 quarters, which is expected to drive the US revenue for the company. Cipla delivered better than the forecasted performance for Q3FY22, due to strong demand in US and India markets and healthier operating leverage. Hence, we recommend BUY.
MINDTREE LTD.
CMP - ₹ 3,997.10
BSE CODE 532819
Volume 61,193
Face Value ₹ 10
Target ₹ 4,340
Stoploss ₹ 3,870 (CLS)
Mindtree Limited is a digital transformation and technology services’ company. It offers services in the areas of analytics and information management, application development and maintenance, business process management, business technology consulting, cloud, independent testing, infrastructure management services and SAP services, etc. Analysing the quarterly performance, net sales for Q3FY22 stood at ₹ 2,750 crore as opposed to ₹ 2,023.70 crore in Q3FY21. The operating profit climbed to ₹ 662.90 crore in Q3FY22, up by 25.19 per cent as compared to ₹ 529.50 crore in Q3FY21. Net profit soared up 25 per cent in Q3FY22 to ₹ 437.50 crore from Q3FY21 which was ₹ 326.50 crore. Mindtree has a resilient business structure and has multiple long-term contracts with leading brands, globally. It has tremendous growth opportunities as the company exhibits smooth transition of management, better client focus for sustainable long-term growth and a healthy cash flow generation with an optimal cost efficiency strategy. Hence, we recommend BUY.
(Closing price as of Mar 08, 2022)