Sun Pharma share price falls 2% after Q4 results fail to beat estimates; brokerages see up to 22% upside
时间:2024-06-26 12:14:24 阅读(143)
Sun Pharmaceuticals share price fell 2% to hit an intraday low of Rs 856.7 on NSE on Tuesday after the drug maker reported a surprise net loss of Rs 2,227.38 crore for the quarter ended March 2022. Company’s revenue for the quarter rose 11% from a year ago to Rs 9,386.08 crore. The firm also reappointed Dilip Shanghvi as a managing director for a further term of five years and Pawan Goenka was appointed lead independent director. So far this year, Sun Pharma stock has outperformed benchmarks. Sun Pharma share price has risen 3.49% year-to-date as opposed to 6% fall in NSE Nifty 50. Analysts remain bullish on the stock and see up to 22% potential rally going forward on the back of scale-up of the Specialty portfolio, niche launches in the US generics segment.Stock talk: Should you buy, hold or sell Sun Pharma shares?Motilal Oswal: BuyTarget price: Rs 1,040; Upside: 17%
According to analysts at Motilal Oswal Financial Services, Sun pharma delivered a lower-than-expected 4QFY22 due to moderation in the RoW/EMs/API segment and higher OPEX. However, company’s Specialty portfolio continues to progress well, with its contribution to sales rising to 13% in FY22 from 7% in FY18. Analysts tweaked their FY23, FY24 EPS estimate by around 4% and 3% respectively factoring in a higher R&D spend on clinical trials, high OPEX-related to promotional activities and supply chain management; and weakness in API offtake to some extent.
Analysts at JM Financial Services noted that Sun’s 4QFY22 was driven by growing domestic and global specialty portfolio sales although the bottomline was impacted by one-offs. They believe that Sun’s learning curve has been steep in Big Pharma dominated specialty market and has successfully carved a niche for itself. “We believe that Sun is at an early stage earnings up-cycle due to the following- (1) A growing specialty portfolio; (2) Taro Recovery; (3) Robust R&D pipeline; (4) Unassailable domestic leadership; and (5) strengthening balance sheet with an improving margin profile,” they said in a report. The brokerage maintains buy call on the stock, and values Sun Pharma at 25x FY24 EPS of Rs 43.6 to derive a target price of Rs 1,090 per share.
Kotak Securities: AddFair Value: Rs 985Analysts at Kotak Securities believe that Sub Pharma’s specialty business is yet to break even and as sales scale up further, the medium-term margin outlook stays healthy. “We cut FY2023/24E EPS by 4%/1% due to field force expansion, higher R&D and lower Alchemee profitability. FV lowered to Rs985 (at 25X FY2024 PE) from Rs1,000. Continued execution in specialty provides further re-rerating potential,” they said. Key risks to estimates include increased competitive intensity in specialty and higher increase in R&D spends.
(The stock recommendations in this story are by the respective research analysts and brokerage firms. Financial Express Online does not bear any responsibility for their investment advice. Capital markets investments are subject to rules and regulations. Please consult your investment advisor before investing.)
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