Sun Pharmaceuticals Reports Q2FY24 Profit, Stock Price Gains 1.15%

Sun Pharmaceuticals' stock price registered a 1.15% increase, reaching Rs 1,129, a day after the company announced a second-quarter profit for FY24 of Rs 2,375.51 crore. This marked a 5% rise in comparison to Rs 2,262.22 crore during the second quarter of FY23, surpassing market estimates. The company also reported revenue from operations at Rs 12,192.41 crore, reflecting an 11.3% increase compared to Rs 10,952.28 crore recorded during the quarter that ended in September 2022. Sun Pharmaceuticals' EBITDA for the quarter stood at Rs 3,179 crore, with an EBITDA margin of 26.1% for Q2, as opposed to 27% for the same period the previous year.

Sun Pharmaceuticals' stock exhibited a 1.48% gain over the last five days but saw a 1.13% decline in the past month. Nevertheless, it has delivered positive returns of 16% in the past six months and 13.25% year-to-date for investors.

For investors considering Sun Pharmaceuticals shares, there are multiple recommendations from financial analysts:

1. a stock market brokerage firm recommends a "Buy" with a Target Price of Rs 1,310. They note that while Sun Pharma's Q2FY24 revenue was in line with expectations, EBITDA was 6% below estimates due to higher operating expenses. Global specialty sales grew by 19% year-on-year and 3% quarter-on-quarter, with strong performance in India sales.

2. another brokerage firm also suggests a "Buy" with a Target Price of Rs 1,280. They maintain that Sun Pharma's earnings estimates for FY24 and FY25 remain unchanged. The company's performance in Q2FY24 was in line with their estimates, aided by domestic formulation and specialty sales. SUNP's growth is now more focused on specialty, RoW, and the domestic pharma business.

3. Motilal Oswal Financial Services recommends a "Buy" with a Target Price of Rs 1,310. They describe Sun Pharma's 2QFY24 financial performance as in line and highlight the company's healthy growth in specialty and branded generics businesses. The company's initiatives focus on improving prescriptions for commercialized specialty products and the filing of new products and clinical trials for products under development.

Please note that these recommendations are based on assessments by respective research analysts and brokerage firms. FinancialExpress.com does not assume responsibility for their investment advice, and investments in capital markets are subject to rules and regulations. It is advisable to consult with your investment advisor before making any investment decisions.