Morgan Stanley, CLSA cut Cipla ratings on earnings

MUMBAI Thu Feb 7, 2013 9:48am IST

Various medicine pills are seen in Ljubljana February 14, 2012. REUTERS/Srdjan Zivulovic/Files

Various medicine pills are seen in Ljubljana February 14, 2012.

Credit: Reuters/Srdjan Zivulovic/Files

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MUMBAI (Reuters) - Morgan Stanley and CLSA downgraded their ratings on Cipla Ltd (CIPL.NS) 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.

(Reporting by Abhishek Vishnoi and Rafael Nam; Editing by Subhranshu Sahu)

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