Shares in Cipla gain 3.1 per cent to Rs 327.35 after CLSA upgrades the stock to "outperform" from "underperform", maintaining its 12-month price target at Rs 360.
The brokerage says it expects "strong" operating performance from Lexapro, an anxiety and depression drug, and a weaker rupee.
CLSA says nasal spray Dymista will also boost earnings as US sales ramp up. The brokerage also calls Cipla's valuations "reasonable" after recent sharp falls.
Separately, Cipla has cut the price of some of its cancer drugs, but company says no impact seen on revenues due to very low volumes of these drugs.
Copyright @Thomson Reuters 2012
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