Pharma Stock To Buy After Q1 Net Profit Soars 40%, TP Rs 1885: PL Recommends

Large cap pharma major Sun Pharmaceutical Industries Ltd shares have been hitting back-to-back 52-week high in trade on BSE for the last few days. Last trading price of Sun Pharmaceutical Industries shares on BSE is Rs 1732.25 per share. The company's market capitalisation stood at Rs 4,15,614.65 crore. Sun Pharmaceutical Industries shares offered return of over 10% in last 2-weeks and rose 123% in last 3-years.

Meanwhile, brokerage firm Prabhudas Lilladher has recommended buy call with target price of Rs 1885 after the company declared healthy Q1 results. Check key details below:

Sun Pharmaceutical Industries Q1 Results: The leading pharma company announced a jump of 40% YoY in its net profit for Q1FY25 to Rs 2836 crore as against Rs 2023 crore declared in the corresponding quarter of last year. Meanwhile, the revenue from operations zoomed 6% to Rs 12,653 crore as compared to Rs 11,941 crore announced in the similar quarter of last year. During last year's first quarter, "the Group completed the acquisition of 60 percent shareholding in Vivaldis Health and Foods Pvt Ltd for a consideration of Rs 143 crore... Accordingly, the results for the quarter ended June 30, 2023 are not comparable with other periods presented," said Sun Pharma.

The company's India formulation sales soared 16.4% to Rs 4144 crore, accounting approximately 33.1% of total consolidated sales. Sun Pharma introduced six new products in the Indian market during the quarter. US formulation sales declared marginally lower at $466 million, down 1% YoY, but still accounted for more than 31.1% of total consolidated sales.

Sun Pharmaceutical Industries Share Performance: The 52-week high price of Sun Pharmaceutical Industries shares on BSE is Rs 1746.00 per share (as on 1/08/2024) and 52-week low price is Rs 1069.00 per share (as on 31/10/2023), respectively. The company's market capitalisation stood at Rs 4,15,614.65 crore. Sun Pharmaceutical Industries shares offered return of 88% in last 2-years and soared 311% in last 5-years.

Should You Buy Sun Pharma Shares Post Q1 Results? According to Prabhudas Lilladher, "Though FY25 expenses may remain elevated given company are in investment phase to ramp up specialty pipeline; launch of deuruxolitinib along with progress of other pipelines provides visibility to SUNP's specialty pipeline beyond FY25. We maintain 'BUY' rating at TP of Rs.1885 based on 35x FY26E earnings. SUNP remains our top pick in large cap space."

About: Sun Pharma is the world's fourth largest specialty generics company with presence in Specialty, Generics and Consumer Healthcare products. It is the largest pharmaceutical company in India and is a leading generic company in the US as well as Global Emerging Markets. Sun's high growth Global Specialty portfolio spans innovative products in dermatology, ophthalmology, and onco-dermatology and accounts for over 16% of company sales. The company's vertically integrated operations deliver high-quality medicines, trusted by physicians and consumers in over 100 countries. Its manufacturing facilities are spread across six continents.

Disclaimer: The stock has been picked from the brokerage report of Prabhudas Lilladher. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.