ICICI Securities research report on Sun Pharmaceutical Industries
Sun Pharmaceutical Industries’ (Sun) reported Q4FY20 performance was below our estimates due to higher operating costs and forex loss, although revenue was higher than estimated. Revenue grew 14.3% YoY to Rs81.8bn (I-Sec: Rs79.0bn) and adjusted PAT grew 3.9% to Rs6.6bn. EBITDA margin at 16.7% missed our estimates by 310bps due to forex loss (170bps) and lower gross margin (110bps), caused the lower profitability. The company is focusing on cost rationalisation measures and improving product mix. Continued scale-up in global specialty sales is positive and we believe loss in Absorica sales post generic competition in H2FY21 could be compensated by ramp-up of Ilumya and Cequa.
Outlook
We remain positive on long-term outlook considering strong India business, pick-up in specialty sales and attractive valuations. Maintain BUY.
For all recommendations report, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
