Shares of the pharmaceutical giant closed at Rs 719.3 apiece on the NSE, up 3.62% from the previous close. The stock has the potential to go up 10-20%, based on analysts’ review post the second quarter earnings.
Macquarie maintained its ‘outperform’ rating on the stock with a 12-month target price of ₹790 per share as profitability missed estimates due to cost pressures after revenue came in line with expectations, it said.
It surged as much as 8.6% on Thursday before giving up some of its gains. More than 1 crore shares exchanged hands on the BSE and NSE on Thursday compared with a combined daily average volume of 9 lakh shares on both the exchanges for the last one month. Nomura also maintained its ‘buy’ rating with a target price of ₹863 as it expects the operating income margins – better known as EBITDA (Earnings Before Interest Taxes Depreciation and Amortization) margin – to improve to 18% by the end of fiscal 2023.
