Drug major Sun Pharmaceutical’s steady December quarter earnings prompted a favourable view from a couple of brokerages. BofA raised the target price of the stock while reiterating a buy view on the stock. Meanwhile, Nuvama remains upbeat on Sun Pharma’s growth prospects and maintains a buy view.

The stock was trading with minor gains at the opening time and hit the day’s high of Rs 1,430.45 on the NSE, up 0.84% over the Wednesday closing price.

Sun Pharmaceutical Industries on Wednesday reported a 17.4% year-on-year (YoY) growth in consolidated net profit for the quarter ended December to Rs 2,561 crore, and this was higher than an ETNow poll of Rs 2,425 crore.

Consolidated revenue from operations grew 10% YoY to Rs 12,381 crore, and this was also a tad higher than the estimated Rs 12,309 crore.

Read More: Sun Pharma Q3 Results: Cons PAT rises 17% YoY to Rs 2,561 crore; Rs 8.5/sh dividend announced

Here’s what brokerages said

BofA: Neutral | Target: Rs 1,440

BofA has maintained a neutral stance on the Sun Pharma stock and hiked its target price to Rs 1,440 from an earlier target of Rs 1,370. In its post earnings stock review note, BofA said that the company’s US And India growth was positive and the Q3 earnings were in-line with its estimates. There were pulls and pushes in the specialty segment with drugs ‘Ilumya’ remaining strong while ‘Winlevi’ missing spark. Earning drivers have been factored-in in its valuation.

Also read: Budget 2024-Sensex Live Updates

Nuvama: Buy | Target: Rs 1,635

Nuvama has raised FY24E/25E core EPS by 4%/5% and PE to 30X (from 28X) and rolled-over to Q3FY26E, yielding a target price of Rs 1,635 from an earlier target of Rs 1,330 as it reiterated a ‘Buy’ view. Calling Q3FY24 impressive, it said that specialty drove margin improvement. The revenue was in line with estimates but beat consensus on PAT by 5%.

“Despite a spike in opex and limited gRevlimid, Q3FY24 reaffirms our conviction as a specialty is progressing well and volume-led double-digit India growth is heartening,” Nuvama said.

The US generics is also likely to recover as Mohali nears normalcy. In its view, all these factors lend higher growth visibility while
specialty uptick and cost-efficiency shall sustain margins.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)

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