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Sun Pharmaceutical Industries Ltd climbed as much as 2.5 per cent to Rs 485.35, and was among the top percentage gainers on the NSE index.
“We believe earnings have bottomed out for Sun Pharma,” says CLSA Research.
The brokerage has hiked the rating to “buy” from “sell” after Q4 results. It has kept a price target of Rs 600.
CLSA says Indian pharma sector reported stable Q4 earnings on the back of stable US sales sequentially despite heightened pricing pressure, and competitive intensity.
US challenges remain but the management commentary on pricing has improved; price-to-earnings valuations have become reasonable compared with their 5-year history, it adds.
More than 1.3 million shares traded against their 30-day moving average of 5.7 million shares. About 15 of the 39 analysts covering the stock have a “buy” or higher rating, 12 have “hold” while 12 rate it at “sell” or lower; their median price target is Rs 513, according to Thomson Reuters data.
Up to Tuesday's close, Sun Pharma has fallen 17.1 per cent compared with a 15.6 per cent drop in the Nifty pharma index this year.
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