Our take on CIPLA Ltd Rs 704/: 

Looking at huge volumes within few minutes of market opening, it appears that it was pre planned strategy of some bear cartel.  However, yesterday evening, MD of CIPLA in a TV interview told that Cipla sales should grow 20% in current year and margin should also improve 150 Bps. Co is also setting up new factory in Goa and open to acquistions in USA. Although contribution to profits from Nexium in coming quarters will be lower, yet Cipla is likely to post 71% growth in bottom line for FY16 with estimates Eps of Rs 25-27.

According to Kotak Securities, Cipla is their top pharma pick.

Jefferies has given price target of Rs 850 as Jefferies estimate Cipla earnings to grow 35% CAGR over next 3 years