Sun Pharma shares rose over 4 percent after the pharma major posted a nearly 300 percent jump in its consolidated net profit for the December 2018 quarter. Sun Pharma shares rose as much as 4.04 percent to Rs 454.40 per share in the opening trade on the BSE. At 9.25 AM, the stock was trading 2.95 percent up at Rs 449.65, while the Sensex was up 0.44 percent at 36,311.04 points.

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Sun Pharmaceutical Industries Ltd on Tuesday reported a 286.1 percent year-on-year (YoY) jump in its consolidated net profit at Rs 1,241.8 crore for the December 2018 quarter, compared to a net profit of Rs 321 crore a year ago. CNBC-TV18 Polls had predicted a profit of Rs 1,064 crore for the quarter under review.

Motilal Oswal said it has cut FY19/20/21 EPS estimates by 4.5%/5.4%/4% to factor in subdued growth in the domestic formulation business and the delayed pick-up in the US business. “We remain positive on the company's business model, which focuses on building a specialty portfolio in the regulated market and increasing traction in US generics, among others. We maintain Buy on the stock. Resolution of corporate governance issues is a key monitorable.” The brokerage maintained a “buy” rating on the stock, with the revised TP of Rs 540.

Jefferies said it is positive on Sun as it expects acyclical recovery in business and valuations are supportive. “While mgmt. has made steps to address investor concerns, delays in disclosures and clarity raise concerns and we think the overhang could continue in the near term,” it added. The brokerage rated the stock as “buy” and has the price target of Rs 535 per share

First Published:Feb 13, 2019 9:30 AM IST