Cipla shares ratings cut by Morgan Stanley, CLSA on earnings

Morgan Stanley and CLSA downgraded their ratings on Cipla Ltd shares a day after the Indian drugmaker reported a slower-than-expected rise in its October-December net profit.

Morgan Stanley cut its ratings to "equal-weight" from "overweight", citing slower growth prospects on the back of limited niche drug launches, lower margins and a higher tax rate. The bank also cut its price target to 414 rupees from 437 rupees.

CLSA cut its ratings on Cipla to "underperform" from "outperform", citing disappointing margins in the October-December quarter and expectations near-term earnings growth will be slower due a higher base. The bank cut its price target to 415 rupees from 475 rupees.

Please read our terms of use before posting comments
TERMS OF USE: The views expressed in comments published on indianexpress.com are those of the comment writer's alone. They do not represent the views or opinions of The Indian Express Group or its staff. Comments are automatically posted live; however, indianexpress.com reserves the right to take it down at any time. We also reserve the right not to publish comments that are abusive, obscene, inflammatory, derogatory or defamatory.