Jefferies has retained buy rating on Sun Pharmaceutical Industries and cut target price to Rs 440 from Rs 480.
Shares of Sun Pharmaceutical Industries ended down 1.3 per cent at Rs 333.65 on Monday while the BSE Sensex closed 1375.27 points down (-4.61 per cent) at 28,440.32.Sun Pharmaceutical Industries Ltd., incorporated in 1993, has a market cap of Rs 80053.81 crore.Investment RationaleUS FDA has classified Halol as OAI (warning letter to follow) which is a negative and will delay approvals, said Jefferies.
The brokerage has cut EPS estimates by 4-8 per cent.
The brokerage believes the stock already factors in no improvement and values ex-India business at distress level.
FinancialsSun Pharmaceutical Industries' key products/revenue segments include Pharmaceuticals which contributed Rs 9783.29 crore to sales value (94.95 per cent of total sales) and Other Operating Revenue which contributed Rs 519.92 crore to sales value (5.04 per cent of total sales)for the year ending March 31, 2019.
For the quarter ended December 31, 2019, the company reported consolidated sales of Rs 8038.65 crore, up 1.13 per cent from last quarter sales of Rs 7949.19 crore and up 4.99 per cent from last year same quarter sales of Rs 7656.71 crore.
The company reported net profit after tax of Rs 1023.71 crore in the latest quarter.