Sun Pharma's shares down 6% today: Here we decode why
What's the story
Sun Pharma's shares fell nearly 6% today, following the company's announcement of a 20% year-on-year fall in its consolidated net profit for the quarter ending June 30. The company's stock fell by 5.7% to ₹1,608.30 on BSE and by 5.78% to ₹1,608 on NSE. The Mumbai-based drug major posted a net profit of ₹2,836 crore for the April-June quarter of last fiscal year.
Financial performance
Adjusted net profit rises 6% YoY
For the first quarter, Sun Pharma's adjusted net profit, excluding exceptional items, was ₹2,996 crore, a 6% year-on-year increase. The company's total income also saw an uptick during this period. It rose to ₹14,316 crore in the June quarter from ₹13,185 crore in the same period last year. This data was revealed by Sun Pharma in a recent regulatory filing.
Market analysis
Mixed reviews from brokerages
Brokerages have given mixed reviews on Sun Pharma's stock after the Q1 results. Nuvama has maintained a target price of ₹1,830 with a 'Hold' rating, citing margin outperformance due to an improved product mix and growth in Rest of World (ROW) markets. Meanwhile, Avendus upgraded its rating to 'Add' from 'Reduce,' raising the target price to ₹1,830 from ₹1,770.
Investment outlook
Motilal Oswal lowers target price to ₹1,960
Motilal Oswal has maintained a 'Buy' rating on Sun Pharma's stock but lowered the target price to ₹1,960 from ₹2,000. The brokerage cited strong earnings support from the company's innovative and branded portfolio as a reason for its decision.