Cipla shares fall to a five-month low, among top Nifty 50 losers after Q2 results

The fall in the stock price comes after analysts cut their target price on the stock following the company's September quarter results that were reported during market hours on Tuesday.

Considering the subdued growth prospects and valuation of 24 times and 22 times the FY26 and FY27 price-to-earnings estimates, which factor in the earnings upside

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The brokerage wrote in its note that Cipla's Q2 operational performance was in-line with expectations. This was the fifth consecutive quarter of slowdown in year-on-year growth in revenue.

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Motilal has cut its earnings estimate by 3%, 4%, and 3% for FY25, FY26, and FY27 to factor in lower sales of Lanreotide on production modifications; unfavorable seasonality in domestic formulation; and deferral in potential ANDA approvals.

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North America was one of the key growth drivers in earnings over FY22-24. However, Motilal expects the growth trajectory to moderate for the next 12-15 months

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