Rs 8.5/Share Interim Dividend: Blue-Chip Pharma Stock Sets Record Date; Buy?

Blue-chip pharmaceutical company Sun Pharmaceutical Industries Ltd. has a market valuation of Rs. 3,40,025.78 Cr. at the end of Friday's trading session. The shares ended on a green note up by 0.76% at Rs 1417.20 a day after clocking a fresh 52-week-high at Rs 1,438.80 on 1st February. The rally came after the company declared Q3 results and a huge interim dividend for FY24.

Sun Pharmaceutical Industries Dividend

"An interim dividend of Rs. 8.5/- (Rupees Eight and fifty paisa only) per equity share of Re. l/- (Rupee one only) each of the Company for the financial year 2023-24 is declared. As intimated on January 15, 2024, the Record Date for entitlement of interim dividend for the financial year 2023-24 is February 09, 2024. The interim dividend shall be paid on or before February 23, 2024," said Sun Pharmaceutical Industries in a stock exchange filing.

Sun Pharmaceutical Industries Financials

For the quarter that ended on December 31, 2023, Sun Pharmaceutical Industries Ltd reported a consolidated net profit of Rs 2,523.75 crore, up 16.5% year on year (y-o-y) from Rs 2166.00 Cr in the same period the previous year. In comparison to Rs 11,240.97 crore in the same quarter last year, it generated consolidated revenue of Rs 12,380.7 crore in December 2023 quarter. During the quarter, EBITDA increased by 15.8% year on year to Rs 3,476.8 crore, with an EBITDA margin of 28.1%.

Dilip Shanghvi, Managing Director of the Company said, "We are pleased by our continued broad-based growth including in Global Specialty. We are keenly looking forward to EMA filing of Nidlegy in coming months. Once approved, Nidlegy will significantly expand our onco-derm franchise in Europe."

"Sales of formulations in India for Q3FY24 were Rs. 37,785 million, up 11.4% andaccounting for about 31% of total sales. For the first 9 months, sales were at Rs. 111,814 million, up 9.2%. Sun Pharma is ranked No. 1 and market share at 8.5% in the over Rs. 1,933 Billion Indian pharmaceutical market as per AIOCD AWACS MAT Dec-2023 report. As per SMSRC MAT Oct-2023 report, we are ranked No.1 by prescriptions with 12 different doctor categories. For Q3FY24, the company launched 28 new products in the Indian market," said the company in a report.

Sun Pharmaceutical Industries Share Price Target

Deven Mehata - Equity Research Analyst at Choice Broking said SUNPHARMA is presently trading at Rs 1432, with the stock price fluctuating in the range of 1400 to 1420. It is anticipated to remain sideways within this range. If the price breaches the 1444 level, there is potential for it to further ascend to the 1500-1555 level in the short run, while support is observed near the 1350 level.

The Relative Strength Index (RSI) is currently at 70.5 and is trending upward, indicating a significant sideways movement.

The overall trend for SUNPHARMA is bullish, supported by various technical indicators, reinforcing the optimistic outlook. Given these signals, there is a possibility for the stock to achieve a target price of Rs 1500 in the near term.

It is advisable to consider buying on dips, particularly around Rs 1400, to capitalize on potential retracements in the stock price. To prudently manage risk, implementing a stop-loss (SL) at Rs 1350 is recommended. This precautionary measure is crucial to safeguard investments in the event of an unexpected market reversal.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.