Shares of Pharma company Cipla gained after brokerage CLSA upgraded the stock to "outperform" from "underperform", maintaining the 1-year price target at Rs.360.
CLSA expects "strong" operating performance from Lexapro, an anxiety and depression drug, and a weaker rupee.
Also, the brokerage is of the opinion that Cipla’s nasal spray Dymista will also boost earnings as U.S. sales pick up.
Valuations are also "reasonable" after recent sharp falls, CLSA said.
Only recently, Cipla slashed prices on three cancer drugs by a substantial amount. However, the company says no impact seen on revenues due to very low volumes of these drugs.
Shares of Cipla were trading at Rs.327 up 3% over the previous close. It had touched a day’s high of Rs.329 and a day’s low of Rs.318.80. The total traded quantity of the shares stood at 1.65 lakh shares on the BSE.