CLSA retains buy on Sun Pharma, target price Rs 540
Buy Sun Pharmaceutical Industries Ltd. at a price target of Rs 540.0 .
By ETMarkets.com | Updated:
CLSA has retained buy rating on Sun Pharmaceutical Industries in the long term with the target price of Rs 540. Shares of Sun Pharma ended up 0.5% at Rs 396.60 on Tuesday while the BSE Sensex closed 291.62 points up at 38,506.09.
Company Financials
For the quarter ended 30-06-2019, the company has reported consolidated sales of Rs 8259.30 crore, up 17.25% from last quarter sales of Rs 7044.26 crore and up 15.70% from last year same quarter sales of Rs 7138.83 crore. The company has reported net profit after tax of Rs 1501.38 Crore in latest quarter.
Investment Rationale
Assuming 7-10% market share over a 3-4 year period, Cequa has the potential to generate peak sales potential of $100 million - $125 million, it said. Starting FY17, Sun has launched six specialty products in the US and these products should ramp-up over the next few years, said CLSA. Sun’s balance sheet strength should enable it to consummate more deals for developed markets.
Company Financials
For the quarter ended 30-06-2019, the company has reported consolidated sales of Rs 8259.30 crore, up 17.25% from last quarter sales of Rs 7044.26 crore and up 15.70% from last year same quarter sales of Rs 7138.83 crore. The company has reported net profit after tax of Rs 1501.38 Crore in latest quarter.
Investment Rationale
Assuming 7-10% market share over a 3-4 year period, Cequa has the potential to generate peak sales potential of $100 million - $125 million, it said. Starting FY17, Sun has launched six specialty products in the US and these products should ramp-up over the next few years, said CLSA. Sun’s balance sheet strength should enable it to consummate more deals for developed markets.
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