Sun Pharma shares drop 2% after shipments from Mohali facility halted; should you buy, sell or hold?
Sun Pharma share price: These actions include retaining an independent Current Good Manufacturing Practice expert to conduct batch certifications of drugs manufactured at the Mohali facility.
Shares of Sun Pharma declined over 2 per cent on Monday, April 24 after the US FDA directed the company to take certain corrective actions at the Mohali (Punjab) facility before releasing final product batches into the US.
In a letter titled “CONSENT DECREE CORRESPONDENCE/NON-COMPLIANCE LETTER” from the US FDA, the company has been directed to take certain corrective actions at the Mohali facility before releasing further final product batches into the US.
These actions include retaining an independent Current Good Manufacturing Practice expert to conduct batch certifications of drugs manufactured at the Mohali facility.
Further, the company through a regulatory filing said that it is taking corrective measures and has temporarily halted the release of batches from Mohali.
“The Company is taking required corrective steps, but there will be a temporary pause in the release of batches from Mohali until US FDA-mandated measures are implemented. US shipments from Mohali will resume once these measures are in place,” the filing read.
Last seen, shares of the pharmaceutical company traded 2.04 per cent lower on NSE at Rs 969.3 apiece, and on BSE the scrip quoted at Rs 969.95 apiece.
What analysts suggest on Sun Pharma?
Vikas Sethi, Managing Director, Sethi Finmart has recommended buying shares of Sun Pharma at Rs 900/ Rs 925 apiece from a medium to long-term perspective.
“Investors who have already invested should ‘hold’ the stock at the current levels as a rally in pharma stock is seen after a long time,” said Sethi.
According to Sandeep Waghle, Founder and CEO, Power My Wealth, there is a breakdown in the short term and the stock can decline further. Waghle believes that if the scrip breaks Rs 950 levels, then it can further fall to Rs 920/Rs 930 apiece.
Waghle gave a broad range of Rs 930 to Rs 1,040 apiece in the Sun Pharma for the next few weeks.
Sun Pharma's share price history
On a year-to-date (YTD) basis, the shares of Sun Pharma have declined over 2 per cent as compared to Nifty50’s dip of over 3 per cent
In the past six months, the stock declined over 2 per cent as compared to the headline index’s dip of 0.19 per cent.
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