Sun Pharma Share Price Rises as Analysts Find Q2 Earnings More Resilient Than Rivals

Sun Pharmaceutical Industries Ltd.’s share price rose Tuesday after analysts said its July-September earnings were more resilient than its peers. Most brokerage firms maintained their ratings and target prices on Sun Pharmaceutical Industries after the company’s consolidated net profit beat market estimates.

Sun Pharmaceutical Industries net profit It rose 27.94% year-on-year to Rs 3,040 billion in the quarter ending September 30, 2024, compared to Bloomberg analysts’ estimate of Rs 2,932 billion.

Citi Research said in a report that the better-than-expected numbers for the second quarter were due to gRevlimid as well as good traction in its expertise and India business segment. Additionally, the company reduced guidance on research and development spending from 8-9% of sales in fiscal 2025 to 7-8%.

These factors helped Sun Pharmaceutical Industries offset the impact of expenses related to the Leqselvi launch and price disruptions in Japan, Citi Research said. The brokerage maintained a ‘buy’ rating on the company’s stock with a target price of Rs 2,080, implying a 9.4% upside from Monday’s closing price.

Citi Research takes a constructive approach as Sun Pharmaceutical Industries has branded two-thirds of its business and is growing steadily. The generics industry appeared to have hit rock bottom and was expected to gain traction.

“Compared to other big pharma names, Sun Pharma’s earnings are more resilient and there is no significant contribution from non-recurring generic products.”