Ranbaxy sheds 9%; brokerages downgrade, doctors wary

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26 Aug, 2025 12:21

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Shares of Ranbaxy shed another 9 percent intraday on Monday, after losing 20 percent on Friday. Slew of brokerages downgraded the stock as US Food and Drug Administration (USFDA) banned Ranbaxy’s Punjab-based Toansa Active Pharmaceutical Ingredients (API) plant.

UBS maintains sell rating and reduced target price to Rs 300 from 500. Stating that downside risks remain, UBS is concerned that USFDA action removes US as a potential earnings driver and may take three to five years for issues to get resolved. It is expecting FY15 EPS from exclusive drugs to fall to Rs 42 versus Rs 64 earlier.

Nomura downgraded the stock to neutral and cut target price to Rs 311 from Rs 436. It has cut estimates for CY14F and CY15F by 36 percent and 17 percent respectively.

CLSA has a sell call on the stock with a revised target of Rs 330 per share. It feels key exclusive opportunities will be saved by sourcing API.

Meanwhile, media reports indicate that Indian Medical Association (IMA), which has close to 78,000 doctors in the panel, will be seeking clarity from the Indian drug regulator on the quality of Ranbaxy drugs.

At 12:29 hrs, the stock was quoting at Rs 319.35, down Rs 17.15, or 5.10 percent on the BSE.