Sun Pharma Shares Decline Over 5% As Q1 Profit Falls 20%
Sun Pharma stock fell as much as 5.78% during trade so far to Rs 1,608 apiece on the NSE.
Shares of Sun Pharmaceutical Industries Ltd. declined over 5% after the company posted its first-quarter results on Thursday. The consolidated net profit declined 20% year-on-year to Rs 2,279 crore.
Total income rose to Rs 14,316 crore for the June quarter as against Rs 13,185 crore in the year-ago period. Dilip Shanghvi, Sun Pharma's chairman and managing director, said the drug maker had a strong performance during the quarter, where the overall growth reflects steady progress across all its markets.
Macquarie maintained its 'outperform' rating on the counter and its target price of Rs 2,135. The company's India business growth is primarily driven by volume growth and new product introductions, according to the brokerage. The management is confident on the company's Leqselvi launch as well.
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Sun Pharma Share Price
Sun Pharma stock fell as much as 5.78% during trade so far to Rs 1,608 apiece on the NSE. It was trading 3.65% lower at Rs 1,644 apiece, compared to an 0.23% decline in the benchmark Nifty 50 as of 9:50 a.m.
It had declined 4.11% in the last 12 months and 12.79% on a year-to-date basis. The total traded volume so far in the day stood at 12 times its 30-day average. The relative strength index was at 44.
Thirty six out of the 44 analysts tracking the company have a 'buy' rating on the stock, five recommend a 'hold' and three suggest a 'sell', according to Bloomberg data. The 12-month analysts' consensus target price on the stock is Rs 1,942, implying an upside of 18%.
