Moneycontrol Bureau
Shares of Sun Pharma jumped 2 percent intraday on Friday post its December quarter results. Driven by strong growth in US business and Taro's performance, the drug major’s net profit surged 73.7 percent and revenue grew 50.5 percent (year-on-year) during October-December quarter. The stock has been on buyers' radar after Taro announced strong third quarter performance with record margins. Sun Pharma currently holds 66 percent stake in the company.
Meanwhile, Sun Pharma has also received US FDA for its Abbreviated New Drug Application (ANDA) to market a generic version of Temodar, Temozolomide Capsules, 5 mg, 20 mg, 100 mg, 140 mg, 180 mg and 250 mg.
"The capsules have annual sales of approximately USD 400 million in the US," it said in a statement.
Temozolomide Capsules are indicated for treatment of adult patient with newly diagonesed glioblastoma multiforme concomitantly with radio therapy.
Brokerage view
Religare maintains buy rating on the stock with a revised target of Rs 740. It also raised FY14-FY16E EPS by 5-10 percent on stronger Taro assumptions.
Credit Suisse sees an upside of 5 percent at Rs 716, with a rating of outperform. UBS maintains neutral rating on the stock. The brokerage feels management of Sun Pharma needs to continue to do M&A to meet high market expectations.
At 10:08 hrs, the stock was quoting at Rs 622.00, up Rs 7.30, or 1.19 percent on the BSE.
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