Sun Pharma stock soars on Q4 results, robust sales outlook

Sun Pharmaceutical Industries shares rose more than 3 percent on Wednesday after it reported net profit rose more than expected and after management guided for robust sales growth in FY14.

The Mumbai-based company said consolidated net profit rose 23 percent to Rs 1012 crore for the January-March quarter. The company also announced a one-for-one issue of bonus shares.

[caption id=“attachment_824259” align=“alignleft” width=“380”] Sun Pharmaceutical Industries announced that the board has recommended payment of dividend of 500% or Rs 5 a share of Re 1 each for the year ended Mar. 31, 2013. [/caption]

Sun Pharma expects revenue growth of 18-20 percent for the current fiscal year ending March 2014, its managing director said on Tuesday.

Brokerage CLSA has initiated a buy on the stock with a target of Rs 1,220 per share, citing premium valuation. It added that Sun Pharma’s US business is the key growth driver.

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The board has also approved bonus issue in the ratio of 1:1 i.e. one share for every one share held on the record date. It has also declared a dividend of Rs 5 per share on face value of Rs 1 each.

At 10 am, the stock was up 4.5% to Rs 1,040, on the BSE.