Budget 2017: What may be in store for Cipla stock

Stocks of pharmaceutical companies are largely less volatile around the Budget but Cipla, having more domestic exposure, has seen volatility. Increase in health care expenditure (low at 1.5 per cent of total expenditure) and boost Budget 2017-18 to research and development (R&D) activity via incentives are among key expectations. In the previous Budget, Customs and excise duties remained unchanged but expectations on boosting infrastructure for the industry were not met.

Current Budget: While R&D incentives and rise in health expenditure will be looked at, there are high expectations of a cut in the minimum alternate tax currently levied on Special Economic Zones. Expectations on removal of excise duty disparity between formulations and active pharmaceutical ingredients could also keep volatility high.

Advertisements
Budget 2017: What may be in store for Cipla stock

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s