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India’s biggest drugmaker Sun Pharma swung back into profit in the June quarter, lifted by robust sales jump in its US and domestic businesses. The Mumbai-based pharma company, headed by billionaire Dilip Shanghvi, posted a better-than-expected net profit of 1,440 crore for the quarter ended June 30, as compared to an average profit estimate of 14,13 crore based on a Bloomberg survey of analysts.

Sun Pharma shares jumped 10% to 774 after earnings today, the most since April last year, boosting its 2021 rise to almost 31%.

Deepak Jasani, Head of Retail Research, HDFC Securities, said: Healthcare stocks did well led by Sun Pharma who came out with excellent Q1FY22 numbers." BSE healthcare index today jumped over 2%.

Sun Pharma's quarterly revenue rose 28% to 9,720 crore. It also took a much smaller one-time charge of 6.31 billion rupees in the latest quarter.

Analysts say the resilience of Sun’s earnings despite the company having little exposure to Covid-related treatments during the pandemic reflects its bet on specialty drugs in the U.S paying off. The Mumbai-based company has a portfolio spanning dermatology, ophthalmology and oncology in its top market outside India.

“We witnessed a strong Q1, driven by a combination of robust core business growth, low base and some sale of Covid products," said Shanghvi. “We are enthused by the all-round growth across all our businesses."

India sales came in at about 3300 crore, up 39% compared to the same quarter last year while the US finished dosage sales rose 35% to $380 million, Sun said in a statement. Sales in other geographies also jumped significantly. The drugmaker also repaid debt of about $185 million in the June quarter. Over the last five quarters, the company has repaid debt of about US$ 765 million.

Sun Pharma is the world's fourth largest specialty generic pharmaceutical company and one of India's top pharmaceutical company.

"Technically, Sun Pharma shares look super strong after a long consolidation. On weekly charts, the stock has given a rounding bottom formation break out today along with bullish signals of RSI and MACD both. First target levels will be 848 followed by 900 levels in short term," said Rahul Sharma, Co- Founder, Equity99.

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