Shares of Cipla fell more than 2 percent intraday on August 26 after global brokerage Credit Suisse maintained neutral call on the stock, but cut price target by nearly 14 percent.
The research firm slashed price target to Rs 445 from Rs 515 per share earlier saying high competition in generic Voltaren gel could be a key risk in the near term.
The Voltaren is used to treat joint pain in the hands, wrists, elbows, knees and feet.
Credit Suisse cut FY20/FY21 EPS estimates by 10/14 percent and factored in lower US sales & profits in estimates. It also factored in recovery in trade generic from Q3FY20. Any delay is a risk, it said.
India Rx business growth has been below peers, it added.
The stock was quoting at Rs 463.35, down Rs 2.55, or 0.55 percent on the BSE at 1058 hours IST.
Disclaimer: The above report is compiled from information available on public platforms. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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