Sun Pharmaceutical Industries Limited is an Indian multinational pharmaceutical company headquartered in Mumbai, that manufactures and sells pharmaceutical formulations and active pharmaceutical ingredients (APIs) in more than 100 countries across the globe. It is the largest pharmaceutical company in India and the fourth largest specialty generic pharmaceutical company in the world. The products cater to a vast range of therapeutic segments covering psychiatry, anti-infectives, neurology, cardiology, diabetology, gastroenterology, ophthalmology, nephrology, urology, dermatology, gynaecology, respiratory, oncology, dental and nutritional.
Quarterly Growth Walkthrough
Sun Pharmaceutical Industries registered a 5% Year-on-Year (YoY) growth in consolidated profit of Rs 2,181 crore for the third quarter as compared to Rs 2,126 crore in the previous year. However, the net profit was down 4 percent as compared to Rs 2,256 crore sequentially.
Consolidated revenue from operations for the Indian pharma major has risen by 14 percent at Rs 11,241 crore as compared to Rs 9,863 crore in the December 2021 quarter. Revenue in Q2FY23 was reported at Rs 10,952 crore.
Earnings before interest, depreciation, tax, and amortisation (EBITDA) was computed at Rs 3,004 crore which is 15% higher from Rs 2,606 crore reported last year. EBITDA margin have expanded by 30 bps to 26.7 percent on a yearly basis as against 26.4 percent a year ago.
Sun Pharma has mentioned that it has filed 4 ANDAs (Abbreviated New Drug Application) for the quarter and its portfolio includes 54 approved NDAs (New Drug Application) while 13 NDAs await US FDA approval.
The company expects acquisition of Concert Pharmaceutical, which would add a late-stage asset deuruxolitinib for treating Alopecia Areata.
The board has announced an interim dividend of Rs 7.50 and the record date for the dividend is yet to be announced.
Sun Pharma stock price faces resistance as it approaches its lifetime high which was previously achieved in 2015. The price seems to sustain along with the trendline marked with the blue colour. If the price breaks below the trendline, it will trigger a massive sell-off. Considering the weakness in Pharma sector, this company appears to be doing well as compared to its peers. The price has overextended above the 200-day exponential moving average which makes it overbought, hence investors should not enter unless a major correction occurs.
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