Buy Sun Pharma, target price Rs 2,264: Sharekhan by BNP Paribas

Sharekhan by BNP Paribas has a buy call on Sun Pharmaceutical Industries Ltd. with a target price of Rs 2264. The current market price of Sun Pharmaceutical Industries Ltd. is Rs 1785.6. Sun Pharmaceutical Industries Ltd., incorporated in Rs 1993, is a Large Cap company with a market cap of Rs 427297.56 Crore) operating in Pharmaceuticals sector.

Sun Pharmaceutical's key products/revenue segments include Pharmaceuticals and Other Operating Revenue for the year ending 31-Mar-2024.

Financials

For the quarter ended 30-09-2024, the company has reported a Consolidated Total Income of Rs 13645.39 crore, up 3.49% from last quarter Total Income of Rs 13185.30 crore and up 9.29% from last year same quarter Total Income of Rs 12486.02 crore. The company has reported net profit after tax of Rs 3030.67 crore in latest quarter.

Investment Rationale
The Sun Pharma management has maintained its single digit guidance and have guided for recurring marketing expense after the launch of specialty drugs and higher R&D Sharekhan by BNP Paribas has already factored in its estimates. Hence they have broadly maintained their estimates for the company and kept the call at buy with a target of Rs 2264 and only introduced FY27 estimate.

Promoter/FII Holdings
Promoters held 54.48 per cent stake in the company as of 30-Sep-2024, while FIIs owned 18 per cent, DIIs 18.41 per cent.