Cipla shares fell by 1.94%, trading at ₹1,587.50 at 9:18 AM today, following a brokerage downgrade. The drop was driven by a downgrade call from Nomura, which set a target price of ₹1,500, implying further downside.
The downgrade was primarily based on concerns surrounding delays at Cipla’s Goa facility, which has been under scrutiny after receiving a warning letter. The brokerage noted that this delay could impact the company’s ability to capitalize on the opportunity related to its Abraxane generic. Additionally, Nomura flagged potential risks related to rising costs and asset quality concerns, which could pressure the company’s earnings in the near term.
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