Cipla Shares Plunge: Brokerages Downgrade on Margin Cut, Weak US Sales

• Cipla shares faced multiple downgrades from brokerages after its December quarter results, leading to a significant stock decline.
• Jefferies downgraded Cipla to 'Underperform' and cut its price target to ₹1,170, citing weak US sales and reduced FY26 EBITDA margin guidance.
• HSBC also downgraded Cipla to 'Hold', lowering its price target to ₹1,285 due to weaker gRevlimid sales and revised margin outlook.
• Management cut FY26 EBITDA margin guidance by 175-300 basis points, primarily due to Lanreotide supply disruptions expected until H1 FY27.
• Macquarie maintained 'Outperform' but noted Cipla's Q3 performance missed estimates, though it believes the stock correction reflects near-term headwinds.

Why It Matters: Cipla's stock fell sharply after Q3 results due to weak US sales and reduced margin guidance, leading to multiple brokerage downgrades.