Buy Sun Pharma, target price Rs 554: ICICI Securities

ICICI Securities has given a buy rating to Sun Pharma with a target price of Rs 550. The share price moved up by 0.26 per cent from its previous close of Rs 513.85. The stock’s last traded price is Rs 515.30.

Sun Pharmaceutical Industries Ltd., incorporated in the year 1993, is a Large Cap company (having a market cap of Rs 123301.82 Crore) operating in Pharmaceuticals sector.

Sun Pharmaceutical Industries Ltd. key Products/Revenue Segments include Pharmaceuticals which contributed Rs 11906.74 Crore to Sales Value (95.01 % of Total Sales) and Other Operating Revenue which contributed Rs 625.19 Crore to Sales Value (4.98 % of Total Sales)for the year ending 31-Mar-2020.

Financials
For the quarter ended 30-06-2020, the company reported a Consolidated sales of Rs 7467.19 Crore, down 7.56 % from last quarter Sales of Rs 8078.03 Crore and down 9.59 % from last year same quarter Sales of Rs 8259.30 Crore. The Company reported net profit after tax of Rs -2429.81 Crore in latest quarter.

Investment Rationale
The stock is placed at the previous major breakout area and the lower band of the rising channel thus offers a fresh entry opportunity with a favourable risk reward set up

Promoter/FII Holdings
Promoters held 54.69 per cent stake in the company as of March 31, 2020, while FIIs held 12.81 per cent, DIIs 19.56 and public and others 12.94 per cent.