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Shares of Sun Pharmaceuticals industry slid by nearly 3 percent despite the pharma major reporting a 43 percent growth in consolidated net profit for the April-June quarter.

The net profit for the pharmaceutical company for the April-June quarter came in at Rs 2,061 crore, jumping nearly 43 percent against Rs 1, 444 crore in the corresponding period a year ago.

The pharmaceutical major's consolidated revenue rose 10.7 percent in the quarter ending June to Rs 10,762 crore from Rs 9,719 crore in the corresponding period a year ago.

Analysts also consider investors booking profit a reason behind the stock declining.

“It can be said that some profit-booking is taking place in the market after the stocks substantial growth in the recent days," said Bhavesh Gandhi, AVP-Research, IIFL.

In the past five days, the stock has gained over 5 percent and has rallied over 10 percent over the past one month.

Brokerage views

Jefferies has a ‘buy’ rating on Sun Pharmaceuticals at a target price of Rs 1,089, while CLSA also has maintained the ‘buy’ rating on the pharmaceutical stock with a target price of Rs 1,140.

CLSA believes that Sun Pharmaceutical’s strong base business comprised of India formulations and diversified operations in emerging markets can aid the stock is performing well.

Morgan Stanley has maintained an 'overweight' rating on the shares of the company with a target price of Rs 1,032. The brokerage firm notes that expansion to large new markets will augment growth for the pharmaceutical company.

Sun Pharmaceuticals stocks settled at Rs 917, falling 2.81 percent on the BSE.

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First Published:Aug 1, 2022 3:35 PM IST