Sun Pharma Share Price: Down 5% post Q4 results, brokerages divided

Brokerages remain dividend on Sun Pharma stock as some stated the adjusted EBITDA margin missed consensus estimates
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SHAILESH ANDRADE

Shares of Sun Pharmaceutical Industries declined nearly 5 per cent in early trade as its net profit declined in Q4FY25.

The company clocked a 19 per cent dip in consolidated net profit for the quarter ended March 2025 at ₹2,149 crore compared to ₹2,654 crore in the year-ago quarter. Gross sales stood at ₹12,815 crore, a growth of 8.5 per cent. The company ended FY25, with a 12 per cent net profit growth at ₹10,929 crore (₹9,576 crore). Gross sales for the year stood at ₹52, 041 crore, up 9 per cent.

Brokerages remain dividend on the stock as some stated the adjusted EBITDA margin missed consensus estimates.

Nuvama Institutional Equities retained hold call at a target price of ₹1,830 and trimmed the EBITDA margin estimates for FY26/27 by 30 bps/40 bps and expected 8 per cent PAT CAGR over fY25-27.

According to Nuvama, Sun Pharma’s improving product mix can partially offset the effects of higher operating costs and tax rate. However, the uncertainty on potential tariffs and pricing reset as per MFN pricing may lead to future earnings cuts.

SBI Securities foresees the stock to trade in the range of ₹1,700-₹1,800 in short to medium term. The brokerage believes that the company would continue its growth trajectory driven by strong traction in specialty and generic portfolio, complemented by new product launches.

Meanwhile, Motilal Oswal, maintaining buy at a higher target price of ₹2,000, reduced FY26/FY27 estimates by 3 per cent or 1 per cent factoring in additional spending on marketing or promotion for specialty products.

In addition, Citi has retained buy call at ₹2,200 per share. Nomura assigned neutral rating at ₹1,970 per share, citing that Q4 performance was below estimates due to lower US revenues.

The stock traded 2.93 per cent lower on the BSE at ₹1,669.55 as at 10.37 am, after hitting a low of ₹1636.30.

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Published on May 23, 2025