Cipla Shares Crash: Brokerages Downgrade Rating After Weak Q3 Results, Further Decline Ahead?

• Cipla Ltd. shares are under pressure after weak December quarter (Q3) results, leading to multiple brokerage downgrades.
• Weak US sales and supply disruptions for key drugs like gRevlimid and Lanreotide are cited as primary reasons for the poor performance.
• Jefferies downgraded Cipla to 'Underperformed' and cut its target price to ₹1,170, indicating a potential 12% decline.
• The company reduced its FY26 EBITDA margin guidance by 175–300 basis points, impacting investor confidence.
• Jefferies also cut EPS estimates for FY26-FY28 by 19-21% due to expected prolonged Lanreotide supply issues until H1 FY27.

Why It Matters: Cipla's weak Q3 results, US sales issues, and reduced guidance led to brokerage downgrades and share price fall.