Shares of India's largest drugmaker rose as much as 2.1 per cent to Rs 614.4, their highest since May 24, 2017.

According to a BSE filing, the company has reported a consolidated net profit of Rs 982.51 crore for the June quarter of 2018-19. It had posted a net loss of Rs 424.92 crore in the year-ago quarter on account of an exceptional item.

“Net profit for the same quarter last year was adversely impacted by settlement with certain plaintiffs related to the Modafinil antitrust litigation in the US, with the settlement amounting to Rs 951 crore,” it added.

Total revenue from operations stood at Rs 7,224.17 crore in the June quarter. It was Rs 6,208.79 crore in the same period a year ago. “For the first quarter, we have recorded good growth in all the major markets,” Sun Pharmaceutical Industries MD Dilip Shanghvi said.

CLSA has raised the price target to Rs 750 from Rs 600 with a 'buy' rating. The brokerage believes Sun is well-placed to double its adjusted EPS over the next two years.

Motilal Oswal has raised the price target by 16 per cent to Rs 700, and has given a 'buy' rating. It says: “Growth in US business was better than expected.”

ICICI Securities has raised the price target to Rs 690 from Rs 582 with a 'buy' rating. The brokerage expects US recovery to sustain. It remains positive on the stock due to ramp-up in revenue from speciality business in US, and high industry growth in India.

Citi has hiked the price target to Rs 600, and has given a 'neutral' rating. The brokerage says US traction is encouraging.

About 13 of the 35 analysts covering the stock have 'buy' or higher rating, 12 have 'hold'; their median price target is Rs 531.63, according to Thomson Reuters data.

Up to Tuesday's close, Sun Pharma stock had gone up 5.4 per cent YTD; the stock had ended 6.7 pct higher after the announcement of results on Tuesday.

(With inputs from Reuters)

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