Sun Pharma at 7-year high after good Q2 show; brokerages raise targets

Sun Pharma share price: Sun Pharmaceuticals Industries stocks gained on Wednesday on the back of good September quarter numbers. The drug maker reported a 10.51 per cent increase in consolidated net profit at Rs 2,262.22 crore against Rs 2,047.01 crore in the same period last fiscal. Consolidated total revenue from operations stood at Rs 10,952.28 crore as against Rs 9,625.93 crore in the corresponding period in the previous financial year.

The stock opened at Rs 1,038.80 and made an intraday high of Rs 1,070.95, breaching 7-year high of Rs 1058. The counter also made a fresh 52-week high in today's session. At 2 PM, the scrip quoted Rs 1,049 apiece, up by 1.30 per cent.

Post second quarter results, brokerages have revised the target price on the stock:

According to a filing by the Mumbai-based pharm company, the total expenses in the quarter under review were higher at Rs 8,625.07 crore, as compared to Rs 7,562.31 crore in the same period a year ago.

"The company recorded double-digit topline growth and strong margins driven by market share gain in India, sustained ramp-up of global specialty business and growth in emerging markets. Dilip Shanghvi, MD, Sun Pharma, said.

Global specialty business grew by 27.5 per cent driven by (drugs) Ilumya, Cequa and Winlevi. Dilip said that the company's management will continue to focus on expanding global specialty business and growing all businesses.

The company's India formulation sales were at Rs 34,60 crore, up 8.5 per cent over the same period last fiscal. US formulation sales were at USD 412 million, growth of 14.1 per cent, while global specialty sales crossed USD 200 million, up 27.5 per cent over Q2 last year.

The company's emerging markets formulation sales were at USD 259 million, up by 6.7 per cent, while rest of world formulation sales were at USD 181 million, lower by 3.8 per cent from the same period last fiscal, impacted by adverse currency movements.

Sun Pharma has yielded more than 10 per cent returns to its investors in the past one month and 16 per cent in 6 months. YTD, the stock has rallied 23 per cent. The 52-week range of the stock is Rs 1,070.95 - Rs 733.70.

Click Here for more stock Market updates I Zee Business Live