Sun Pharma falls 4% as Goldman Sachs downgrades stock

NEW DELHI: Shares of Sun Pharma declined 4 per cent to Rs 383.85 in Tuesday's session after the global financial firm Goldman Sachs downgraded the stock to sell while cutting the target price to Rs 355 from Rs 437.

Goldman attributed the downgrade to the fact that the company's spending involved in specialty pharma will impact its profit growth.

Besides, profit drivers, including India, Taro Pharmaceutical and US generics are witnessing softer business momentum, Goldman said.


Sun Pharma had reported a 52.63 per cent drop in consolidated profit at Rs 635.88 crore for the quarter ended March 31, 2019.

Consolidated Ebitda slipped 39.57 per cent to Rs 1,017 crore during the quarter under review. The figure stood at Rs 1,683 crore in the same period last year.

Shares of Sun Pharma closed 3 per cent down at Rs 389.80 on BSE.