Sun Pharma falls 6% on weak sales guidance, price pressure woes

Trade

• Watchlist
• Portfolio
• Message
• Set Alert

 

 

Choose Stock Exchange: BSE LIVE NSE LIVE

26 Aug, 2025 12:21

Volume

Todays L/H

More

×

Moneycontrol Bureau Shares of Sun Pharma slipped 6 percent intraday on Tuesday after its March quarter results missed street estimates and weak sales guidance irked investors. In a conference call, the company has guided sales growth of 8-10 percent in FY17 after considering multiple factors such as Halol remediation. The company also said that the pharma major will continue to build speciality business which could impact short term profitability. It also cautioned that it could lose anywhere between 5-10 percent due to pricing pressure and peer consolidation in the US.However, it is positive that it will generate USD 300 million of synergies with Ranbaxy by FY18. The company is in line with objective of requesting USFDA to reinspect Halol by end of this quarter.Though its net profit in Q4 rose 93 percent at Rs 1713.7 crore from Rs 889.3 crore, it still fell short of analysts estimates. According to a CNBC-TV18 poll, net profit was expected at Rs 1888 crore. During the quarter, its revenue rose 25 percent to Rs 7634.16 crore against Rs 6112.4 crore on annual basis. Analysts say 25 percent growth was aided by Gleevec generic FTF launch. In Q4, its research and development (R&D) investments was at Rs 711 crore, 9.6 percent of net sales. Dilip Shanghvi, Managing Director of the company said that FY16 has been a year of consolidation. "While we have accrued targeted synergies from the Ranbaxy acquisition, we have also made commensurate investments in building the specialty business in the US. These strategic investments will help us drive the sustainable growth of our business," he said in a press statement. The company will hold meeting on June 23 to evaluate a proposal for buyback of equity shares of the company. At 12:41 hrs Sun Pharmaceutical Industries was quoting at Rs 760.90, down Rs 51.60, or 6.35 percent.Posted by Nasrin SultanaFollow @NasrinzStory