Sun Pharma share price: Surging for the second straight session, Sun Pharmaceutical share price has touched a five-month high to Rs 955 levels on the BSE and NSE intraday, after gaining over4 per cent on Thursday.

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The stock in the last two sessions has gained nearly 7 per cent on account of the acquisition announcement of Uractiv portfolio from Fiterman Pharma in Romania.

The counter has been one of the top gainers on Nifty50 and trading at its highest level since April 29, 2022. The stock was up nearly 2 per cent higher to Rs 935.45 per share on the BSE as compared to 0.17 per cent fall in the S&P BSE Sensex at around 02:00 PM.

The stock is trading near its 52-week high level of Rs 966.90 per share, which it touched on April 24, 2022. The stock has apparently outperformed the overall market as it gained around 16 per cent in the last one year, as against 5 per cent fall in the S&P BSE Sensex during the same period.

Sun Pharma’s FY22 annual report underpins that Global Specialty & India business remain key growth drivers for the company. IIFL Securities said, “On the back of robust ~42/23% growth in Specialty/India business, Sun reported ~26% Ebitda margins in FY22 - the highest in last 5 years.”

Moderating cost inflation (RM/PM/freight) could help Sun Pharma to partly offset the impact of higher R&D spends. The brokerage said that sustained growth momentum in specialty, robust growth in India and stable ex-Taro US generics business will help the company to deliver ~13% EPS CAGR over FY22-25.

Similarly, Elara Capital said that steady specialty ramp-up helped Sun Pharma maintain gross margin. It added that higher promotional/other overhead cost hit Q1 EBITDA and EBITDA margin may witness limited expansion as the company steps up spending on clinical trials.