Fractures in supply chain, compounded by stringent regulatory oversight, is causing ripples in generic drug manufacturers' production capacity in US, a report by IIFL Securities noted
Traction for its specialty portfolio, a strong showing in the domestic market, and better regulatory compliance are positives for the country s largest pharmaceutical (pharma) company, Sun Pharmaceutical Industries.
Given the triggers, some brokerages have increased their earnings per share estimates and target price for 2024-25 (FY25).
This should sustain the momentum for the stock, which has been one of the major pharma gainers in 2023-24 (FY24), rising 57 per cent. It is currently trading at Rs 1,547 per share.
Rise in input costs, inventory write-off, and pricing pressures led to a drop in gross margins.
Higher competitive pressures led to cuts in operating profit margins and earnings estimates for FY24 and FY25.
Most brokerages have a neutral or a reduce rating on the stock on account of valuations.
Bolstered by an impressive performance in the global specialty business and outstanding results in the Indian market, Sun Pharmaceutical Industries, the largest pharmaceutical (pharma) company in the country, showcased a strong performance in the July-September quarter (second quarter, or Q2) of 2023-24 (FY24).