Sun Pharma jumps 4% on solid Taro Pharma results

NEW DELHI: Shares of Sun Pharma jumped over 3 per cent in early trade on Thursday, buoyed by healthy December quarter numbers posted by its subsidiary Taro Pharma.

Taro Pharma reported a 422 per cent year-on-year (YoY) jump in its net profit for the third quarter, whereas net sales for rose by 13 per cent YoY.


Sun Pharma is expected to release its December quarter numbers on Tuesday, 12 February 2019.

Brokerage Kotak Institutional Equities expects Sun Pharma's ex-Taro US revenues to jump by $10 million quarter-on-quarter (QoQ), while domestic business may grow at 11 per cent YoY.

"Company's EBITDA margins may decline 60 bps QoQ to 21.5 per cent, reflecting the launch costs for Ilumya, as well as higher R&D spend (7.3 per cent of sales), said the brokerage.

Shares of Sun Pharma closed 4.48 per cent up at Rs 434 on BSE .