Buy Sun Pharmaceutical Industries, target price Rs 959: ICICI Securities

ICICI Securities has buy call on Sun Pharmaceutical Industries with a target price of Rs 959. The current market price of Sun Pharmaceutical Industries is Rs 802.5. Time period given by analyst is one year when Sun Pharmaceutical Industries Ltd. price can reach defined target.
Sun Pharmaceutical Industries Ltd., incorporated in the year 1993, is a Large Cap company (having a market cap of Rs 195641.77 Crore) operating in Pharmaceuticals sector. Sun Pharmaceutical Industries Ltd. key Products/Revenue Segments include Pharmaceuticals and Other Operating Revenue for the year ending 31-Mar-2021.


Financials

For the quarter ended 30-09-2021, the company reported a Consolidated Total Income of Rs 9848.82 Crore, down -.23 % from last quarter Total Income of Rs 9871.26 Crore and up 11.81 % from last year same quarter Total Income of Rs 8808.91 Crore. Company reported net profit after tax of Rs 2088.73 Crore in latest quarter.

Investment Rationale
The brokerage marginally tweaks estimates due to factor in the current quarter’s performance. Retain BUY with a revised target of Rs959/share based on 28xFY23E EPS (earlier: Rs900/share). Key downside risks: Higher than expected pricing pressures in the US, and regulatory hurdles.


Promoter/FII Holdings
Promoters held 54.48 per cent stake in the company as of 30-Sep-2021, while FIIs owned 12.07 per cent, DIIs 21.72 per cent.