Sun Pharma shares edge higher on Budget day after rise in Q3 profit; brokerages see 27% upside

High-edged stock prices in the morning session on February 1, the day after the company stated the result of December quarterly Pharmaceutical companies reported an 11 percent increase in consolidated net profit to Rs 2,058.80 Crore for the December quarter. It has posted RS 1,852.50-Crore Net last year in the same quarter.

Consolidated net sales for this quarter increased 11.41 percent from last year to RS 9,814.17 Crore. Total further costs 12 percent to Rs 7,829.38 Crore. Operating the EBITDA margin decreased sharply to 17.12 percent in the quarter of 20.43 percent a quarter then and 20.97 percent a year ago Stock traded at Rs 869.75, up to RS 35.60, or 4.27 percent at 10:32 hours on BSE. It has touched the highest intraday RS 869.90 and Low Intraday RS 841.10.

The Global CLSA brokerage company has maintained a buying call in stock with a target at Rs 1,100 per share, reversed more than 27 percent of the current market price. This is a view that supports momentum in a special business to encourage operating leverage. The research company has increased FY22-24 income estimates by 1-5% to reflect the beat of Q3. Special business to be in the driver’s seat, he added.

Citi research company has maintained a buying call and has increased the target to 1,070 per share, upside down 24 percent of the current level. “Pickup in global special income is the key to note. Leading products have shown good momentum. We have increased EPS estimates FY22 / 23/24 by 6-7 percent and remains optimistic about Compamy’s special business,” said the brokerage company.

“The normalized R & D costs will produce an in-line EBITDA while G Rowth is led by special medicines and sales of levulant depends on seasonal. We have increased the EPS FY23 / 24 estimate of 8 percent / 1 percent.