Buy Sun Pharmaceutical Industries, target price Rs 1260: ICICI Direct

ICICI Direct has buy call on Sun Pharmaceutical Industries with a target price of Rs 1260. The current market price of Sun Pharmaceutical Industries is Rs 1000.25. Time period given by analyst is a year when Sun Pharmaceutical Industries price can reach defined target. ICICI Direct recommended to keep stop loss at Rs 830.

Sun Pharmaceutical Industries, incorporated in the year 1993, is a Large Cap company (having a market cap of Rs 240461.35 Crore) operating in Pharmaceuticals sector.

Sun Pharmaceutical Industries key Products/Revenue Segments include Pharmaceuticals and Other Operating Revenue for the year ending 31-Mar-2022.


Financials
For the quarter ended 30-09-2022, the company has reported a Consolidated Total Income of Rs 11037.50 Crore, up 2.54 % from last quarter Total Income of Rs 10763.90 Crore and up 12.07 % from last year same quarter Total Income of Rs 9848.82 Crore. Company has reported net profit after tax of Rs 2260.17 Crore in latest quarter.

The company’s top management includes Mr.Israel Makov, Mr.Dilip S Shanghvi, Mr.Sailesh T Desai, Mr.Kalyanasundaram Subramanian, Mr.Sudhir V Valia, Dr.Pawan Goenka, Mr.Rama Bijapurkar, Mr.Gautam Doshi. Company has S R B C & Co. LLP as its auditors. As on 30-09-2022, the company has a total of 240 Crore shares outstanding.

Investment Rationale Since Q2-2022, significant inflows in the pharma space have been observed and Sun Pharma was among the best performers in the pack suggesting accumulation in the stock at lower levels. Currently, the stock is trading above its mean+1*sigma levels where the brokerage expects it to witness fresh buying interest on dips. The brokerage expect it to cross its life-time highs.

Promoter/FII Holdings
Promoters held 54.48 per cent stake in the company as of 30-Sep-2022, while FIIs owned 14.95 per cent, DIIs 19.47 per cent.