Shares of Sun Pharmaceuticals Industries are in focus on Monday, November 2, after the company in its post-earnings conference call reiterated its high single-digit guidance for the ongoing financial year.
Sun Pharma’s management said the company witnessed slowdown in the drug Illumya’s sales in the second quarter. It made up 12% of sales in FY26.
The company has identified factors that led to the slowdown and will focus on execution to revive growth, the management said.
It added that Sun Pharma will soft launch Illumya for psoriatic arthritis in November.
The management said the firm has secured regulatory approvals for Organon acquisition in majority of the markets. It is on track to close the deal by the fourth quarter of this fiscal.
The management also reiterated its high single-digit guidance for FY27.
Q2 Results
Sun Pharma reported its second quarter results on Friday. Its net profit declined 32% to ₹1,988.5 crore from ₹3,118 crore last year. It was also below the CNBC-TV18 poll of ₹3,085 crore.
Its revenue came in at ₹16,198.7 crore, up 11.9% from the previous year’s ₹14,478.31 crore and above estimates of ₹15,766.1 crore.
The company’s earnings before interest, taxes, depreciation and amortization (EBITDA) increased 4.8% to ₹4,743.5 crore from ₹4,527.05 crore. It was also above estimates of ₹4,403 crore.
Its EBITDA margin contracted to 29.3% from 31.3% in the year-ago period but was above expectations of 27.9%.
Sun Pharma reported a one-time loss of ₹1,269 crore in the second quarter.
Its US sales were at $455 million, in-line with CNBC-TV18 poll’s $455 million.
HSBC
It has a “buy” recommendation on the stock but has reduced its target price to ₹2,050 from ₹2,100. This indicates an upside of 15.3% from its previous closing price.
Nuvama
Nuvama has a retained its “buy” rating but has reduced its target price to ₹2,320 from ₹2,360. This indicates an upside of 30.5% from its previous close.
Stock reaction
Of the 40 analysts who have coverage on the Sun Pharma stock, 35 have “buy” ratings, one has a “hold” rating and four have “sell” recommendations.
Shares of Sun Pharmaceutical Industries ended the previous session 1% up at ₹1,777.7 apiece. The stock is up 3.3% this year, so far.
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Sun Pharma shares in focus as management reiterates FY27 guidance; Analysts see up to 31% upside