May 29, 2013, 05.55 PM IST
The firm believes that Sun Pharma is likely to touch a target price of Rs 825 per share.
The brokerage firm argues that while the operating performance was in line, lower tax rate and higher other income led the beat at the net profit level, its sales of Rs 3070 crore was 3 percent lower-than-estimate.
The company reported a better-than-expected 23 percent jump in January-March quarter net profit at Rs 1012 crore and net sales rose 32 percent to Rs 3087 crore. The board also approved a bonus issue in the ratio of one share for every one share held.
Sun Pharmaceutical ended at Rs 1,066.10, up Rs 70.55, or 7.09 percent on the BSE.
Meanwhile, the brokerage has also lowered Bharat Forge to sell rating from neutral with a target of Rs 200. The brokerage warns that Bharat Forge may see a tough year ahead as most business segments are facing challenges. "We believe the stock is expensive despite building a significant recovery in FY2015E, on which visibility seems bleak at this juncture," it explains in a note.
The stock at Rs 237.50, down Rs 3.65, or 1.51 percent on the BSE.
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