Pre-Covid: Sun Pharma surges 6% after solid earnings

Pre-Covid: Sun Pharma surges 6% after solid earnings

  • Sun Pharma reported an astounding 71% growth in consolidated net profit of Rs. 1,810 crore.
  • The profit increase of the pharmaceutical industry was largely driven by minor changes, driven by the business of speciality products.

Sun Pharmaceuticals Industries Ltd’s shares increased by up to 6 per cent on Wednesday following better reports on its sales than expected. The speciality drug sales of the company rekindled to rate of precaution.

Sun Pharma traded BSE at 11.37 a.m. at Rs. 515, up 6 percent from its earlier closure.

The company has reported a net profit of $1,810 in consolidation, up 71% YY and ahead of the analysis of analysts by Bloomberg at €1,131 in total. The increase in profit was mainly guided by marginal changes driven by the company of speciality goods.

“To his investors, a high level of income in the 2QFY21 was a superior product mix (including a higher share of speciality products), complemented by cost-optimization steps,” Motilal Oswal said.

The $300 million declines in debt in the first half of this year resulted in lower interest rates and deferred tax-assisted profitability.

Consolidated revenue of 8.459 crores, a 6% improvement over the same period last year, resulted in a rise in revenues from its developing and ‘global’ markets.

“In the USA, sales of products like Ilumya, Cequa and Odomzo have risen to pre-cautionary levels,” said Abhay Gandhi, North American CEO of Sun Pharma.

Motilal Oswal reported that its sales were up 22% /5% for FY21 / FY22E and that this was reflected in the rise in speciality portfolio contributions and the lower level of open for a long time due to Covid.

“We are using SUNP to achieve the target price of €610, 24×12 M forward profits. Because of the better outlook for its speciality portfolio, strong ANDA pipelines, and improved market share in the branded generics sector, we are still bullish on SUNP, “said the brokerage.

Pre-Covid: Sun Pharma surges 6% after solid earnings

Rajat Singh
Rajat Singh is the chief Author at Bioinformatics India, he has been writing for the past 3 years and has a special interest in SEO, Technology, Health, Life Sciences and gaming.

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