We are expecting strong performance in Q2 also and are recommending a buy in staggered manner for medium to long term, says Sumit Bilgaiyan of Equity99.
Sumit Bilgaiyan
Equity99
Pharmaceutical stocks are little bit safe in this kind of market. Sun Pharma has reported better-than-expected performance in Q1FY19, led by healthy US sales (ex-Taro), strong growth in domestic business.
Its sales and EBITDA grew by 16 percent YoY and 47 percent YoY, respectively, while PAT increased by 87 percent. Taro has unperformed in Q1. Its US sales fell by 4.2 percent YoY, while ex-Taro US sales grew by 17.5 percent YoY to $240 million owing to launch of gWelchol AG, Yoansa and sales improvement from Halol unit. This clearly shows that Sun Pharma's dependency on the Taro is reducing.
India grew by 22 percent YoY on lower YoY base, while emerging markets business grew 21 percent YoY. We are expecting strong performance in Q2 also. We are recommending a buy in staggered manner for medium to long term.
Disclaimer: The author is Founder of Equity99. The views and investment tips expressed by investment experts on Moneycontrol are their own, and not that of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.