Sun Pharma Q1 net profit seen up 31% to Rs 654 cr

Net sales are likely to go up by 41.22% to Rs 2,309.87 crore from Rs 1,635.7 crore during the same period.

Analysts feel the growth is expected to remain strong with strong operational performance in the first quarter of financial year 2012-13.

Margins will remain firm YoY due to base effect of price increases in Taro and higher margins from Doxil supply in US. Some margin pressure might be seen in Taro.

Analysts expect Sun’s base business to remain strong on the back of recent new launches in the domestic market. Moreover, Sun is likely to benefit from rupee depreciation, mainly on high export contribution (which is 62% of sales) as well as direct exposure to US market through Taro operations.

An expanding generic portfolio coupled with sustained double-digit growth in high-margin lifestyle segments in India is likely to bring in long-term benefits for Sun Pharma.
 
Today, the stock rose 0.56% to close at Rs 676.95 on the BSE.