We had rec­om­mended

Dalal Street Investment Journal - - REVIEWS -

Sun Phar­ma­ceu­ti­cal In­dus­tries in vol­ume 32, is­sue no. 8 dated March 20 - April 18, 2017, un­der the ‘Analysis ’ sec­tion when the scrip was trad­ing at ₹ 708.25. Our rec­om­men­da­tion was based on the com­pany’s strong rev­enue syn­er­gies, in­creased ex­pen­di­ture on R&D, prospects through sig­nif­i­cant ac­qui­si­tions and strong fi­nan­cial per­for­mance.

Sun Phar­ma­ceu­ti­cal In­dus­tries of­fers prod­ucts to ther­apy ar­eas such as car­di­ol­ogy, neuro-psy­chi­a­try, gas­troen­terol­ogy, anti-in­fec­tive, di­a­betol­ogy and der­ma­tol­ogy. The com­pany has strong pres­ence in the US busi­ness, In­dian branded gener­ics busi­ness, emerg­ing mar­kets, global con­sumer health­care busi­ness and ac­tive

phar­ma­ceu­ti­cal in­gre­di­ents (APIS).

On the fi­nan­cial front, Sun Phar­ma­ceu­ti­cal In­dus­tries posted 0.27 per cent drop in its rev­enue to ₹1,733.97 crore in Q1FY18 on a yearly ba­sis . How­ever, the com­pany’s EBITDA loss in­creased to ₹172.81 crore in Q1FY18. The net loss of the com­pany also shot up mas­sively to ₹1,290.99 crore in Q1FY18, as against ₹151.46 crore in the first quar­ter of FY17. On an an­nual ba­sis, the com­pany’s rev­enue in­creased 3.72 per cent to ₹7,523.79 crore in FY17. The com­pany’s PBIDT stood at ₹95.27 crore in FY17, higher by 122.76 per cent, as against an EBITDA loss of ₹418 crore in FY16. The com­pany’s net loss got mas­sively re­duced to ₹34.95 crore in FY17, as against a loss of ₹1,087 crore in the pre­vi­ous fis­cal.

Af­ter our rec­om­men­da­tion, the share price of Sun Phar­ma­ceu­ti­cal In­dus­tries dropped by about 23.58 per cent. How­ever, the stock has ex­hib­ited a re­vival trend and has good growth prospects, es­pe­cially in terms of USFDA ap­provals. Hence, we rec­om­mend in­vestors to Hold the stock. (Clos­ing price as on Nov 8, 2017)

Scrip’s Move­ment

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