Sun Pharma Shares Volatile After Q4: Buy, Sell Or Hold?

Shares of Sun Pharma were volatile in the early hours of trading on Monday after the company posted its earnings for the quarter ended March.

What Happened: The company’s total revenue from operations grew 15.71% to ₹10,930.67 crore compared to the ₹9,446.76 crore revenue it booked in the same quarter last year. The company reported a net profit of ₹1,984.5 crore in the March quarter against a loss of ₹2,277.2 crore in the corresponding quarter last year. The company’s bottom line came in slightly above consensus estimates of around ₹1,850 crore-₹1,900 crore.

The company’s EBITDA for the period stood at ₹2,802.1 crore, up 19.73% from the year-ago period. EBITDA margin for the review quarter stood at 25.64%. Earnings per share for the quarter came in at ₹8.3. The country’s biggest pharma company also announced a ₹4/share dividend for the year ended March.

See Also: Balaji Amines Crashed To 52-Week Low This Week: Why Analysts Remain Bullish On The Stock

The sentiment around the stock seems to have dampened as the company on Saturday, May 27, announced its intent to fully acquire Taro Pharma. Currently, the drugmaker owns a 78.48% stake in the company. The proposal is for the remaining shares for the price of $38/share. “The Purchase
Price represents a premium of 31.2% over Taro’s closing price on May 25, 2023, a 41.5% premium over Taro’s average closing price in the last 60 days,” the company added in a statement.

Brokerage Calls

Here is how analysts reacted to the company’s Q4 numbers.

Research FirmCallsTarget Price
Jefferies‘Buy’ Maintained₹1,150 cut down from ₹1,200
Nomura‘Buy’ Maintained₹1,132
Investec‘Buy’ Maintained₹1,200
Credit Suisse‘Outperform’ Maintained₹1,100
The stock’s last closing price was ₹966.95.

Price Action: Sun Pharma’s share price was down 0.93% to trade at ₹960.85 as the markets opened on Monday.

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