Sun Pharma Q1 Results Review - Earnings Beat Led By U.S.: Dolat Capital

Dolat Capital Report

Sun Pharmaceutical Industries Ltd.’s Q1 FY24 result was above our estimates due to higher than expected traction in U.S. sales and operating performance.

Revenues were at Rs 119 billion (inline) grew by 11%/9.2% YoY/QoQ aided by strong U.S. formulation sales. Ebitda stood at Rs 33.3 billion (+21.6%/+17.7% YoY/QoQ), Ebitda margin was above our estimate (244 basis points YoY/200 bps QoQ) on higher gross margin and lower other expenses.

Sun Pharma's gross margin at 76.9% (above our estimate) expanded 385 bps YoY on higher specialty and gRevlimid sales.

Excluding exceptional item of Rs 3.2 billion, adjusted profit after tax stood at Rs 23.5 billion, grew 13.8% YoY (above our estimate) on higher operating performance.

We upgrade our earnings per share estimates by 11.6%/11.7% in FY24E/FY25E on assuming higher U.S. sales and Ebitda margin. Maintain 'Buy' with revised target price of Rs 1,331.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.