Sun Pharma shares trade lower, here's what brokerages say
Sun Pharmaceutical Industries Ltd reported a net profit of ₹1,984.5 crore during the March quarter compared with a net loss of ₹2,277.3 a year earlier.
The shares of pharmaceutical major Sun Pharma on Monday was down by nearly two per cent on Monday even after the company announced better-than-expected numbers for the March quarter earnings.
Sun Pharma shares were trading 1.60 per cent down at ₹955.10 on BSE.
Sun Pharmaceutical Industries Ltd reported a net profit of ₹1,984.5 crore during the March quarter compared with a net loss of ₹2,277.3 a year earlier.
Adjusted net profit rose 36% at ₹2,155.9 crore in the three months ended March after excluding exceptional items.
Revenue grew 14% to ₹1,0725.6 crore in the quarter.
US formulation sales at $430 million for Q4 marked a growth of 10.5% over a year earlier, comprising about a third of total consolidated sales. This was despite US unit Taro Pharma’s Q4FY23 sales growing at just 2.3% at $147 million in Q4. Taro’s net profit of about $6.9 million also was lower by 75% over adjusted net profit of Q4 last year. In rupee terms, US sales at ₹3,534.32 crore rose 21% helped by favourable currency movement.
Here's what brokerages have to say:
Brokerage ICICISecurities said that it's positive on the company’s long-term outlook considering its strong India business, scale up in specialty sales and focus on margin expansion through superior revenue mix and operational efficiency. "Retain BUY with target price of Rs1,160/share," it said.
"We maintain buy as 1) Global specialty portfolio continues to maintain momentum, 2) Growth in India formulations from new launches and field force expansion and 3) revenue mix continues to tilt towards more remunerative businesses," ICICI Direct has said.
The brokerage firm has increased its target price by 18 percent from its current market price to ₹1140 a share.
Brokerage Motilal Oswal said that speciality sales of the company drove revenues.
"We reduce our earnings estimate by 4% each for FY24/FY25 to factor in a) elevated sales/distribution cost, and b) higher R&D spent related to specialty products. We continue to value SUNP at 25x 12M forward earnings to arrive at a price target of ₹1,160," it said.
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