Sun Pharma was among the top gainers on the 50-stock Nifty index Monday. The company will report its third quarter earnings later today.
Shares of the company surged 2.7% to Rs 556 in early trade before witnessing some profit booking. At 1000 hours, it traded 1.76% higher at Rs 551. The Sensex was down 50 points or 0.28%.
Investors were bullish on the counter after its subsidiary Taro Pharma reported strong numbers for the fourth quarter. Net sales rose to $148.1 million, up 44.3% year-on-year. Gross profit, as a percentage of net sales, rose to 71.6%, compared to 59.6% (YoY). Operating margins grew at 50.3% against 21% (YoY).
Here's what is expected from Sun Pharma's third quarter:
Sales estimated at Rs 1,774 crore against Rs 1,601.1crore (up 10.8% YoY)
Adjusted profit after tax (PAT) estimated at Rs 478.4crore against Rs 306.7 crore (up 56% YoY)
Earnings before income, tax, depreciation and amortization (EBITDA) margins grew at 34.7% against 27.5% (YoY)
Core EBITDA is likely to grow 61.8% YoY to Rs.610cr
Domestic formulation business is likely to grow 9.8% at Rs 703 crore
Export formulations business other than US is likely to grow 24.4%
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