CLSA bullish on Indian pharma, upgrades IPCA Laboratories to 'buy', downgrades Biocon, Ranbaxy

Reuters Posted online: Thursday, Jan 09, 2014 at 0000 hrs
CLSA expects consensus upgrades for India's pharma sector on expectations of strong performance, as earnings will accelerate on back of its U.S. business and on improving domestic growth.

CLSA upgrades IPCA Laboratories Ltd to 'Buy' from "outperform" on expectations of strong earnings growth over FY14-16, while maintaining Lupin Ltd as its "conviction buy" on better return-ratios than peers.

However, the brokerage downgrades Biocon Ltd, Ranbaxy Laboratories Ltd to 'sell' from 'outperform' citing run up in valuations.

Shares of IPCA are up 2.02 percent, Ranbaxy and Biocon are down 0.23 percent, 2.6 percent respectively.