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Shares of Sun Pharmaceutical Industries Ltd rose as much as 7 per cent to Rs 499.05, its biggest daily percentage gain since Dec 27, 2017.
The country’s largest drugmaker's Q4 net profit is up 7 per cent from a year ago, well above expectations.
With signs of bottoming out of non-Taro (unit) US sales, further material downside earnings risk seems unlikely, a Macquarie analyst said. The brokerage has raised the rating to “neutral” from “underperform”.
Macquarie continues to believe any upside from specialty will be protracted and has cut the target price to Rs 460 from Rs 480.
Deutsche Bank said while Sun Pharma is well placed among its peers to transition to specialty pharma company, in the medium term, risks of execution in specialty launches could weigh on the stock. It has cut the target price to Rs 431 from Rs 496 and rated it “hold”.
Jefferies analysts said adjusting for quarter and guidance, FY19/20 estimates fell by 9/5 per cent. Stating that Sun Pharma is best positioned to transition to specialty, Jefferies expects benefits to reflect from FY20. It has cut target price to Rs 500 from Rs 520. And, it recommends a 'hold' on the stock.
Out of 39 brokerages covering the Sun stock, 14 rate 'buy' or higher, 12 'hold' and 13 'sell' or lower; median price target Rs 525, according to Thomson Reuters Eikon data.
Over 4.8 million shares changed hands in the first 30 minutes of trade vs 30-day average volume of 4.4 million.
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