The board of the company also declared an interim dividend of Rs. 5 per equity share for FY24 in addition to the interim dividend of Rs 8.5 already paid during the year.
Despite a fall in the share price today, brokerages are positive on the stock, and most of them have increased the target prices. Here’s what brokerages have to say:
Jefferies
Jefferies expects growth for Sun Pharma to pick up from FY26 backed by which, it has a ‘buy’ view on the stock with a target price of Rs 1,785
Citi Bank
The global brokerage firm stated that the company has margin levers but sees a possibility that FY25 margins may remain subdued. Citi has a ‘buy’ rating on the stock with a target price of Rs 1,640 as it believes that the underlying business trends as well as medium term/LT margin expansion story remains intact.
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JP Morgan
JP Morgan said Sun Pharma presented a strong show in specialty drives in the US while its key business continued to strengthen and the company entered its investment phase.
JP Morgan has an ‘overweight’ rating on the stock with a target price of Rs 1,610.
Prabhudas Lilladher
FY25 expenses may remain elevated given the company is in the investment phase to ramp up the specialty pipeline; the launch of deuruxolitinib along with the progress of other pipelines provides visibility to SUNP’s specialty pipeline beyond FY25.
Stating that Sun Pharma remains Prabhudas’ top pick in the sector, it maintained a ‘buy’ call on the stock with a revised target price of Rs 1,710.
Motilal Oswal
Sun Pharma reported a slight miss at the operational level for 4QFY24 due to lower-than-expected sales in the ROW market and higher-than-expected opex for the quarter.
“SUNP continues to work on enhancing its specialty pipeline in the areas of dermatology, ophthalmology, and onco-dermatology. In fact, the target action date of Jul’24 is the key near-term trigger with respect to Deuruxolitinib”, said Motilal Oswal in a report.
Motilal Oswal retained its ‘buy’ rating on the stock with a target of Rs 1,810.
Nuvama
Overall, earnings were a miss on operating level as per Nuvama and following the company’s guidance of high single-digit revenue growth and 8–10% R&D spend, the brokerage firm cut its FY25E/26E EPS by 17%/6%.
Nuvama has downgraded the stock to ‘hold’ with a target price of Rs 1,620.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
