CLSA bullish on pharma but downgrades Biocon, Ranbaxy

Upgrades IPCA Labs to buy

CLSA expects consensus upgrades for pharma sector on expectations of strong performance, as earnings will accelerate on back of its US business and on improving domestic growth.

CLSA upgraded IPCA Laboratories to 'Buy' from "outperform" on expectations of strong earnings growth over FY14-16, while maintaining Lupin as its "conviction buy" on better return-ratios than peers.

However, the brokerage downgraded Biocon , Ranbaxy Laboratories to 'sell' from 'outperform' citing run up in valuations.

Shares of IPCA are up 2.02%, Ranbaxy and Biocon are down 0.23%, 2.6% respectively.