• Language
  • App
  • Subscriptions
  • Specials
  • Sign-In
  • Register
GeStepAhead Realasset

Presented by :

Associate Sponsor :

Home » News » Markets » Market Edge

Feb 07, 2013, 04.30 PM | Source: Reuters

Analysts slam Cipla on weak Q3 show; stock downgraded

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

Like this story, share it with millions of investors on M3

Analysts slam Cipla on weak Q3 show; stock downgraded

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

Post Your Comments

Share Cancel

Analysts slam Cipla on weak Q3 show; stock downgraded
Moneycontrol Bureau

Broking firms Morgan Stanley and CLSA downgraded their ratings on Cipla 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 Rs 414 from Rs 437.

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 Rs 415 from Rs 475.

However, Nomura retained its "neutral" rating on Cipla post its disappointing third quarter numbers, and expects the stock to trade at a discount to peers.

"We believe Lexapro did contribute to an extent to the earnings (though significantly less than the previous quarter) and could fall materially going ahead. With expansion in the front-end, the company is guiding towards higher overheads and an EBITDA margin of 22%," the Nomura note said.

"Domestic revenue growth slowed on weak anti-infective season. We expect Cipla to trade at a discount to other front-line peers on weaker growth and ROE (return on equity) profile," the note said.

Also read: Cipla mgmt rejig: Time to act as godfather says YK Hamied

Ads by Google

Buy, Hold, Sell ? Hear it first on M3
Analysts slam Cipla on weak Q3 show; stock downgraded

See all

Get started using your favorite social network

or

Login using moneycontrol ID

Username
Password

Need help logging in? Reset password.

Don´t have an account? Sign Up

Get started using your favorite social network

or

Simply sign up using this short form

* mandatory

UserName*

Username should be atleast 4 character

Password*

Password should be 8 or more characters,
atleast 1 number, 1 symbol & 1 upper case letter

Alert

Your Password should contain
  • 8 or more characters
  • At least 1 number
  • At least 1 symbol
  • At least 1 upper case letter
Confirm Password*
Email
Already have an account? Login