Hold Sun Pharmaceutical Industries, target price Rs 1001: ICICI Securities

ICICI Securities has hold call on Sun Pharmaceutical Industries with a target price of Rs 1001.The current market price of Sun Pharmaceutical Industries is Rs 1010.95.


Sun Pharmaceutical Industries, incorporated in the year 1993, is a Large Cap company (having a market cap of Rs 244576.21 Crore) operating in Pharmaceuticals sector.

Sun Pharmaceutical Industries key Products/Revenue Segments include Pharmaceuticals and Other Operating Revenue for the year ending 31-Mar-2022.

Financials
For the quarter ended 31-12-2022, the company has reported a Consolidated Total Income of Rs 11414.85 Crore, up 3.42 % from last quarter Total Income of Rs 11037.50 Crore and up 10.87 % from last year same quarter Total Income of Rs 10295.57 Crore. Company has reported net profit after tax of Rs 2188.04 Crore in latest quarter.

The company’s top management includes Mr.Israel Makov, Mr.Dilip S Shanghvi, Mr.Sailesh T Desai, Mr.Kalyanasundaram Subramanian, Mr.Sudhir V Valia, Dr.Pawan Goenka, Mr.Rama Bijapurkar, Mr.Gautam Doshi. Company has S R B C & Co. LLP as its auditors. As on 31-12-2022, the company has a total of 240 Crore shares outstanding.

Investment Rationale
The brokerage remains positive on the company’s long-term outlook considering its strong India business, scale up in specialty sales and focus on margin expansion through superior revenue mixand operational efficiency. The recent acquisition of Concert Pharmaceutical reiterates management’s increased focus on its specialty business.

However, the brokerage believes, current valuation of 25.6x FY25E EPS captures the near- term potential, hence, it retains HOLD with a revised target price of Rs 1,001/share.

Promoter/FII Holdings
Promoters held 54.48 per cent stake in the company as of 31-Dec-2022, while FIIs owned 16.87 per cent, DIIs 18.94 per cent.