Cadila Healthcare tanks 10% on Citi downgrade

At 1140, the stock was trading 4% lower at Rs 1,120, erasing most of its losses on the National Stock Exchange.

Cadila Healthcare has tanked 10% to Rs 1,050 after Citigroup, according to reports, downgraded the company on account of high valuations.

Citi downgraded Cadila Healthcare to 'sell' from 'buy, says Cadila's valuations "have moved well ahead of fundamentals," despite gradual recovery in the sector and improving U.S, a Reuters report suggests.

Meanwhile, a Bloomberg report suggests, Citi downgraded Cadila Healthcare to ‘sell’, however, increased target price of stock by 17% to Rs 1,115.

At 1140 hours, the stock was trading 4% lower at Rs 1,120, erasing most of its losses on the National Stock Exchange (NSE). The stock opened at Rs 1,165 and touched a high of Rs 1,175 in early morning deals on NSE. The counter has seen an over ten-fold jump in trading volumes with a combined around 727,000 shares changed hands so far on NSE and BSE.