Sun Pharma Q4 results PREVIEW: Big jump? Huge profit? What to expect? All details here

Ahead of its fourth-quarter results, the experts predict Sun Pharma to report huge profit year-on-year basis. In this regard, Zee Business Senior Equity Research Analyst Devanshi Ashar expects the pharma major’s profit to rise over three-fold in the last quarter of fiscal 2020-2021. 

Ashar estimates, the company to report consolidated profit after tax at Rs 1415 crore as against Rs 400 crore in the same period year ago. Similarly, the analyst further estimates, the company would report revenue of Rs 8700 crore versus Rs 8185 crore, up 6 per cent year-on-year (YoY). 

Sun Pharma’s EBITDA to grow by Rs 2150 crore as compared to Rs 1505 crore, up 42 per cent and margins estimated at 24.7 per cent as against 18 per cent YoY basis, the analyst expects. 

Big jump in profits due to Taro weak figures, specialty business witnessed strong growth in the quarter, believes Ashar. “Single-digit growth in US sales estimated, domestic business to grow by eight per cent and improved margins in specialty business is expected.”  

A brokerage firm Nirmal Bhang expects the consolidated profit to grow by over 280 per cent to Rs 15,240 crore while Philip Capital believes the company would jump by around 80 per cent to Rs 14364 crore YoY basis. Sun Pharma in the December-ended quarter reported Rs 16702 crore profit. 

Nirmal Bhang said, “While Sun Pharma’s specialty prescriptions have shown an uptrend, led by Cequa and Ilumya, the same may be partially offset by a decline in prescriptions for its generic dermatology portfolio (Taro).” 

Philip Capital said, “Improving specialty sales and recovery in both Taro and domestic business to deliver eight per cent growth in sales., similarly, margins in Q4 to expand 700bp (basis points) to 25.4 per cent and improving the operating performance of specialty portfolio in the US that had created a dent in the previous year. The resultant EBITDA jumps up by per cent.” 

Both the brokerages see the stock gaining further and spectacular Q4 results, Nirmal Bhang sets a price target of Rs 716 per share, while Philip Capital sets a target of Rs 750 per share.