Sun Pharmaceutical a marketperformer: Karvy Stock Broking
Karvy Stock Broking has rated Sun Pharmaceutical Industries as a marketperformer with a price target to Rs 1245 in its April 15, 2009 research report.
“Revenues for the quarter are expected to show a degrowth of 31% to Rs 8715 million. The lower growth can be attributed to negligible sales of Pantaprazole. Operating margins are expected to be lower at 41.9 % mainly on back of lower gross margins, higher staff and other expenses on account of the Chattem facility. Profits are expected to decline by 52% to Rs 3488 million.”
“We have reduced our FY 09E estimates by 0.8 % to Rs 84.7 on account of amortization of goodwill. We have also reduced our FY 10E estimates by 3.8% to Rs 70.8 on account of lower gross margins and higher other expenses and amortization of goodwill. We also introduce our FY 11E estimates and roll over our price target to FY 11E. We upgrade our price target to Rs 1245 based on 16x FY 2011E (EPS Rs 77.8) and continue to rate the stock as Marketperformer,” says Karvy Stock Broking’s research report.
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