Credit Suisse feels Lupin is trading at high end of historical valuations (23x FY18 EPS) and has low margin of safety with high concentration risk.
"With valuations at 4x FY18 price-to-book for 25 percent normalised return on equity, we find the stock expensive and downgrade it to underperform (from neutral)," the brokerage house says.
Brokerage houses are mixed on the counter as overall they waited for monsoon and 7th pay commission to reflect in earnings, though the company maintained double-digit volume growth when every single consumer goods firm is grappling with slowdown issues.
The quarterly profit compared to a net loss attributable to shareholders of CHF302 million in the first quarter of 2016, but represented an 84 percent fall on net profits of just over CHF1 billion the same period in 2015.
Decline in volume growth, particularly in the US market, loss of business in Venezuela, price erosion and delayed launches due to warning letters impacted its performance in April-June quarter.
There are some indicators that the sector has finally turned the corner.
Adani Transmission is the private sector transmission company in India with over 5,000 circuit km lines in operation and around 1,900 circuit km lines under development.
In CNBC-TV18's 'Indianomics' series, Nandan Nilekani, Former Chairman, UIDAI; Mentor, Ispirt and Ashish Gupta, MD & Head of Research, Credit Suisse discuss how Aadhar, along with government‘s financial inclusion program and a smartphone will change the face of banking system.
Some analysts believe that the market's negative reaction to recent events in the IT space may be overdone.
A growth slowdown in the global economy is imminent as risks from events such as Brexit materialize even as the Indian economy continues to remain relatively stable, though not unimpacted.
The capital infusion will help improve the banks' capital ratios by 30-160 basis points. But, it will also result in around 10-60 percent dilution of share value at the current market price. Also, it will result in the fall in BVPS (book value of equity per share) for most of the banks, the report says.
Most analysts are cautious on the stock post June quarter results and hold a neutral rating but few find its valuations to be reasonable.
A Credit-Suisse note says that in new government contracts the base bids of cement firms are a lot closer to the market rate. An increase of 10 percent has been allowed in prices, it says, which will benefit them.
HUL management has reaffirmed its guidance of continued improvement in operating margins despite the recent increase in commodity costs.
Kulkarni expects large-cap stocks to perform better than mid-cap growth stocks. "We value the Nifty at 18x FY18 earnings per share at 9,900, implying an upside of 16 percent from current levels," he says.
According to Credit Suisse, in the base case USL's operating margins could get adversely impacted by around 150-200 basis points and earnings by around 15-20 percent in FY18, and in the worst case the impact can be much more
Christopher Wood of CLSA says investments in Indiabulls Housing Finance and DLF will be introduced with 3 percent each, while the existing investment in Prestige Estates will be increased by 1 percent.
Earlier in the day, Swiss cement giant LafargeHolcim announced it has entered into an agreement to sell its assets in Lafarge India to Nirma for USD 1.4 billion, or about Rs 9,400 crore.
Mishra says he remains positive on the economy and on markets over 12-24 months, but the likelihood of a lacklustre relative performance near term is rising.
The continued cratering of bond yields has also blunted the advantage fixed income instruments held over their shiny counterpart.
Deutsche Bank's links to the world's largest lenders make it a bigger potential risk to the wider financial system than any other global bank, the International Monetary Fund (IMF) said on Thursday.
Speaking to CNBC-TV18, Credit Suisse's Robert Parker said that the impact of Brexit on the UK will be negative. But a contagion risk for EMs like India will be low, he said.
A report by PAX last week listed the government-owned bank as one of 158 lenders - including JP Morgan Chase, Barclays, Bank of America and Credit Suisse - that violated an international ban for investing in cluster bomb firms.
As per Credit Suisse estimates ITC's volume decline was 7 percent in FY16 which implies average price growth of 14 percent (year-on-year) in the fiscal.
A 'Leave' vote may not immediately result in the UK exiting the UK and a narrow 'Remain' may also impact UK politics, finds Credit Suisse.