Sun Pharmaceuticals rating – Buy- One-offs hit bottomline in Q4FY22
时间:2024-06-26 16:08:08 阅读(143)
Sun reported net loss of Rs 22.8 bn in Q4, mainly on one-offs of Rs 39.4 bn (Rs 37.2 bn of provisions related to settlement of antitrust litigation for valganciclovir, valsartan and esomeprazole, Rs 1.6 bn of provisions for settlement with various purchaser groups and Rs 563.5 m for restructuring of certain businesses). It also booked a one-off tax gain of Rs 764.2 m and FX gain of Rs 1.6 bn. Adjusting for one-offs and FX, PAT was Rs 14.2 bn (~19% below HSBCe). EBITDA margins at 23.1% fell 109bps y-o-y and 346bps q-o-q on input cost pressure and normalisation of expenses.
Traction continues for specialty sales: Global sales for the specialty products portfolio of $185 m grew ~33% y-o-y (+1% q-o-q) on strong traction in key brands Ilumya, Cequa, and Odomzo. Specialty sales in FY22 grew 42% to $673 m (13% of total revenues vs 7% in FY18). Global sales for Ilumya (incl. milestones and royalties) reached $315 m (+81% y-o-y). Winlevi (novel acne drug launched in Nov 2021) is seeing good traction and around 9K prescribing doctors (out of 15K) have prescribed it. We expect sales traction to continue for key brands on improving patient footfall (elective procedures are not yet back to pre-COVID-19 levels), better commercial execution and increasing market size.
Retain Buy rating: We remain positive on Sun’s efforts in the specialty products portfolio, which we believe will likely achieve Ebitda breakeven over the next 2-3 years, resulting in significant operating leverage. We assume specialty sales to be key driver of US sales, with sales CAGR of 17.2% for FY22-25e, while we assume base generic and Taro sales stabilising at current levels.
Sun plans to expand India sales headcount by 10% in FY23e to improve market coverage and de-clutter some marketing divisions. We assume its India segment sustaining above-market growth on new launches and better reach. The outlook remains largely steady for other segments (RoW, emerging markets, API, etc.) barring any short-term fluctuations. Post Q4, we adjust our estimates per current visibility leading to 3.3%/3.5% cuts in EPS for FY23/24e. Our TP is Rs 1,040 (from Rs 1,075).
上一篇:Technical Analysis- Markets getting their mojo back
下一篇:Zepto on track for $1 billion run rate in annual sales value
猜你喜欢
- Share Market Highlights- Nifty, Sensex end mild in green, Bank Nifty set record high intraday; ICICI Bank, SBI led gains
- Share Market Highlights- Bears pull Sensex 703 pts lower on closing, Nifty ends at 16958; RIL gains 3%
- in the mid-1990s. By 2022 the investment was valued at $47 billion.
2. Warren Buffett talked about his business partner Charlie Munger in his letter. He said they both think alike but what it takes Warren Buffett a page to explain, Charlie Munger sums up in a sentence. Charlie Munger’s version, moreover, is always more clearly reasoned.
The lesson for investors: “I will add to Charlie’s list a rule of my own: Find a very smart high-grade partner – preferably slightly older than you – and then listen very carefully to what he says,” Warren Buffett said.
3. Warren Buffett emphasised that his long-time business partner Charlie Munger and he are business pickers, not stock pickers. He further said that efficient markets exist only in textbooks.
“We own publicly-traded stocks based on our expectations about their long-term business performance, not because we view them as vehicles for adroit purchases and sales. That point is crucial: Charlie and I are not stock-pickers; we are business pickers,” Warren Buffett said.
- Tier 2 & 3 cities to drive real estate’s growth in 2024- Yash Miglani
- Sexual wellness brand MyMuse secures $2
- Technical stocks to buy- Nifty faces resistance at 15,680-15,750; TCS, Nestle, Bajaj Auto show rally on charts
- Where is share market headed after Nifty closes above 19460, Bank Nifty below 43950; check support, resistance
- Venus Pipes IPO subscribed 2
- Wall Street Week Ahead- As bear market looms, battered Wall Street seeks elusive ‘Fed put’