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This article is more than 6 month old.

Sun Pharma shares fall 3.5% after Q4 results miss estimates

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The share price of Sun Pharma fell 3.5 percent on Friday after the firm's net profit halved sequentially as sales declined and its US arm reported an operating loss.

Sun Pharma shares fall 3.5% after Q4 results miss estimates
The share price of Sun Pharma fell 3.5 percent on Friday after the firm's net profit halved sequentially as sales declined and its US arm reported an operating loss.
The stock fell as much as 3.5 percent to its day's low of Rs 675 per share on the BSE.
The profit missing analysts' estimates weighed on the sentiment. The pharma major's consolidated net profit fell 52 percent QoQ to Rs 894.15 crore in Q4. A CNBC-TV18 poll had predicted a profit of Rs 1,443.5 crore for the quarter under review.
However, on a YoY basis, the profit surged 123 percent as against its profit of Rs 399.84 crore in the year-ago quarter.
Consolidated revenue from operations stood at Rs 8,522.98 crore for the quarter under consideration, which was around 4 percent lower QoQ. It stood at Rs 8,716 in the previous quarter and Rs 8,184.94 crore in the year-ago period.
For the full year FY21 as well, consolidated profits were down 23 percent at Rs 2,903.82 crore from Rs 3,764.93 crore a year ago.
Brokerages are mixed on the stock after the earnings announcement. While Credit Suisse has an 'underperform' call on Sun Pharma, CLSA and Morgan Stanley are bullish on the stock.
CLSA has a 'buy' call on the stock with a target at Rs 850 per share. India sales grew 13 percent YoY but global specialty sales dipped 6 percent QoQ, it noted.
"Key specialty products are gaining ground and significant operating leverage will accrue over the coming years," it said, adding that success in specialty products should drive a PE re-rating. It also raised FY22-23 EPS estimates by 1-3 percent.
Morgan Stanley is 'overweight' on the stock with a target at Rs 705 per share. The company expects all-round sales growth in FY22, stated the brokerage. It also said that positive operating leverage and growth rebound should help margin.
Meanwhile, Credit Suisse has an 'underperform' rating on the stock with a target of Rs 525 per share. Specialty sales missed estimates in Q4 should further decline, said the brokerage. Also, the company did not provide sales growth guidance for FY23.
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