This topic contains 8 replies, has 1 voice, and was last updated by vishal Patel, Mumbai 6 months, 4 weeks ago.
November 12, 2016 at 12:23 pm #3757
Sun Pharma, posted numbers better than expected on OPM and the net profit front. It posted sales of INR 7,764cr V/s INR 7,800cr expected V/s INR 6,803cr in 2QFY2016, posting a YoY growth of 14.1%.
India sales at INR 2,009cr, was up by 11% YoY. US finished dosage sales at US$555mn was up by 9% YoY. Emerging Markets, sales came in at US$170mn which was up by 22% YoY while the sales from Rest of World (ROW), came in at US$ 79mn, growth of 3% YoY. On operating front, the EBITDA margins, came in at 34.3% V/s 30.1% expected and V/s 28.0% in 2QFY2016. Apart from the gross margin expansion (which came in at 76.3% in 2QFY2017 V/s 73.7% in 2QFY2016), lower expenses during the quarter aided the OPM expansion. Employee expenses, during the quarter posted a decline of 2.0% and other expenses posted a dip of 8.0%. The R&D expenses came in at 7.3% of sales, same in line with last year, posting a YoY growth of 14.0%.
Consequently, Adj. PAT came in at INR 2,471cr V/s INR 1,545cr expected V/s INR 1,107cr in 2QFY2016, YoY growth of 123.3%. Apart from better than expected OPM, the company also posted higher than expected other income (INR 621cr in 2QFY2017 V/s INR 226cr in 2QFY2016).
I am now bullish about this scrip and believe that one should BUY this scrip which has according to me has potential to give atleast 40% returns in the coming months. ( This is my own calculations and not advise to any body)
November 12, 2016 at 12:38 pm #3760
Thanks for your short analysis. I am admirer of this company and its promoters. It requires 56 Chhati to buy a company which is 4 /5 times bigger than your own company : Sun Pharma. Yes initial problems have come. But all along I have been purchasing this scrip at all declining prices. And now with positive trend in sales and profits, I will add more shares in my portfolio. You believe 40% rise in the price but I expect the price to touch Rs. 2000 once the problems are over.
November 12, 2016 at 12:40 pm #3761
Chintan Shah, Ahmedabad
Technically, I have been studying this scrip and it has bottomed out since last few sessions. and now results have been excellent.
I believe that it has bottomed out and can be accumulated.
November 12, 2016 at 12:44 pm #3762
Sarosh Jain, Jaipur
Sun Pharma has book value of just Rs. 89 and current price is Rs. 688 so price to book value ratio is 7.73 compared to Dr Reddy
s PBV ratio of 4.89 and Ciplas ratio of 3.75.
So I believe that compared to Sun Pharma, Cipla is better placed stock and can give more and higher profits. So I suggest Cipla in place of Sun Pharma.
November 12, 2016 at 12:46 pm #3763
Yes , if we go by latest results than this scrip is investment worthy. But God knows how much time it will take to give 40% return. Suggest Cipla, Lupin or Dr. Reddy for better and fast profits in pharma sector
November 25, 2016 at 3:43 pm #3832
Your analysis has been timely and based on your comments, I had purchased 100 shares of Sun Pharma and I am getting good profits. Congrats. For how long should I retain ? Yes I will know from this discussion forum itself
November 25, 2016 at 3:45 pm #3833
After your analysis, Sun Pharma purchased a company in Russian. Russian pharma market is very huge and is growing at 7 to 8 % pa. This takeover will bring strong returns to Sun Pharma I believe. at current rate of Rs. 711, the scrip is solid buy I believe
November 25, 2016 at 3:51 pm #3834
I agree with Ruby that Sun Pharma even at Rs. 711 is a strong buy and coming months, it will show Rs. 900 and for the long term investment I believe Rs. 2000 is possible. Buy and forget
November 30, 2016 at 4:34 pm #3882
vishal Patel, Mumbai
The scrip moved up to Rs. 710. Many fund managers have recommended this scrip. after reading your depth analysis, I will also buy this share tomorrow.