Shares in Cipla gain as much as 4.06 percent to a record high after the drug maker reported a bigger-than-expected 62 percent surge in July-September net profit.
Despite the surge in share prices, Citigroup says on Tuesday it remains cautious, saying the earnings surprise were mainly driven by the generic version of anti-depressant drug Lexapro, whose exclusivity would tail off in the second half of the fiscal year.
Cipla had earlier given a revenue guidance of up to 12 percent for the current fiscal year, but Citigroup says the company management has now revised its topline growth to 15 percent or above in FY13.
Citigroup adds positives such as better product mix and upside from a weaker rupee appeared factored into estimates and valuations.
The bank raised its target price to 390 rupees from 360 rupees, but retained its 'neutral' rating.