Father's Day Pick: Buy Pharma Stock At Rs 1515, TP Rs 1675/1740; Sumeet Bagadia Recommends

In honour of Father's Day, falling on June 16th in 2024, Choice Broking's Executive Director Sumeet Bagadia recommends buying Sun Pharmaceutical Industries shares. With 43 production sites, Sun Pharmaceutical Industries Ltd. (Sun Pharma) is the fourth largest specialised generic pharmaceutical firm in the world, offering high-quality, reasonably priced medicines to more than 100 nations worldwide.

Sun Pharma Share Price Target

Buy SUNPHARMA @ Rs 1515 and add upto Rs 1485 for the target of Rs 1675/1740

"SUNPHARMA is presently trading at Rs 1515 and has recently reversed from support with significant volume, suggesting a potential reversal and a robust bullish trend. A breakout above Rs 1525 could drive the stock towards the Rs 1675 & Rs 1740 levels, with immediate resistance at Rs 1590. On the downside, Rs 1485 & Rs 1450 stand as critical support levels. Moreover, following a prolonged correction, the stock has reversed from the support level. The Relative Strength Index (RSI) is currently at 53.89, indicating an upward trajectory and growing buying momentum," said Sumeet Bagadia.

"Taken together, these technical indicators suggest that SUNPHARMA has the potential to reach the Rs 1675 & Rs 1740 targets in the near term. A prudent strategy would involve considering buying opportunities on dips around Rs 1485 levels. In summary, based on technical analysis and prevailing market conditions, SUNPHARMA appears to offer a promising buying opportunity for those targeting a Rs 1675 & Rs 1740 price objective. It is essential to implement prudent risk management strategies to navigate potential market fluctuations," the analyst further added.

Sun Pharmaceutical FY24 Key Highlights

Dilip Shanghvi, Chairman and Managing Director of the Company said, "During FY24, two of our businesses surpassed USD 1 Billion in annual sales, namely Global Specialty and Emerging Markets. This achievement of critical mass in key markets is a testimony to several years of hard work put in by respective teams. We shall continue to build our specialty portfolio and invest further to gain scale across our businesses."

"The Board has proposed a final dividend of Rs. 5.0 per share for the year FY24. This is in addition to the interim dividend of Rs. 8.5 per share paid in FY24, taking the total dividend for FY24 to Rs. 13.5 per share compared to Rs. 11.5 per share for FY23," Sun Pharmaceutical in a statement.

According to the AIOCD AWACS MAT Mar-2024 study, Sun Pharma holds the top spot in the Rs. 1,970 billion Indian pharmaceutical industry, with a market share of 8.5%. It was ranked #1 by prescriptions with 12 distinct doctor categories, according to the SMSRC MAT report - February 2024. The firm introduced nine novel products to the Indian market in Q4 of FY24.

Sales of formulations in India for the entire fiscal year FY24 were 148,893 million, a 9.5% growth over the same time the previous year. India's formulations sales for Q4FY24 were Rs 37,078 million, up 10.2% from the same quarter the previous year and accounting for 31.4% of the period's total consolidated sales. The firm announced a 10.1% rise in gross sales to Rs. 118,133 million and R&D spending of Rs. 9,000 million in Q4FY24, up from Rs. 6,657 million in Q4FY23. At Rs. 30,352 million, its EBITDA went up by 8.3%. EBITDA margin for Q4 was 25.3% as opposed to Q4FY23's 25.6%.

The net profit for Q4FY24 jumped by 27.8% to Rs. 27,562 million. In Q4FY24, the reported net profit was Rs. 26,546 million, while in Q4FY23 it was Rs. 19,845 million. The firm reported a 10.4% boost in gross sales to Rs. 477,585 million in FY24 and a boost in R&D spending to Rs. 31,776 million from Rs. 23,676 million in fiscal year 23. EBITDA increased by 11.8% to Rs. 130,231 million in FY24, yielding an EBITDA margin of 26.9%. Sun Pharma reported a net profit for FY24 of Rs. 100,707 million, up 16.5% from Rs. 95,764 million in FY23.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.