Specialty Pharma Stock: Rs 5/Share Final Dividend Recommended; Buy/Sell?

With a focus on consumer healthcare products, specialty, and generics, Sun Pharma is the top specialty generics firm in the world. It is the largest pharmaceutical firm in India and one of the top generic manufacturers in the US and other emerging markets worldwide. Its production sites are dispersed over six continents.

Sun Pharmaceutical Industries Dividend

"The Board has proposed a final dividend of Rs. 5.0 per share for the year FY24. This is in addition to the interim dividend of Rs. 8.5 per share paid in FY24, taking the total dividend for FY24 to Rs. 13.5 per share compared to Rs. 11.5 per share for FY23," said the company in a regulatory filing.

Sun Pharmaceutical Financials

Consolidated FY24 Q4 net profit for Sun Pharmaceutical Industries Ltd. climbed 34% to Rs 2,654 crore from Rs 1,984 crore in the same quarter last year. In comparison to the same quarter last year, when it was Rs 10,930.67 crore, the consolidated total revenue from operations was Rs 11,982.9 crore. The company's gross sales surged to Rs 11,813 crore, a 10% YoY growth. EBITDA jumped by 8.3% to Rs 3,035.2 crore in Q4FY24, while EBITDA margin was 25.3% as opposed to 25.6% in Q4FY23. The firm declared a net profit of Rs 9,576 crore and a total revenue of Rs 47,758 crore for the entire financial year that ended on March 31, 2024.

Dilip Shanghvi, Chairman and Managing Director of the Company said, "During FY24, two of our businesses surpassed USD 1 Billion in annual sales, namely Global Specialty and Emerging Markets. This achievement of critical mass in key markets is a testimony to several years of hard work put in by respective teams. We shall continue to build our specialty portfolio and invest further to gain scale across our businesses."

Sun Pharma Share Price Target

Mandar Bhojane - Equity Research Analyst at Choice Broking said, "SUNPHARMA is currently valued at Rs 1488. It recently consolidated within the range of 1450 to 1562 levels and is exhibiting signs of a sideways trend, indicating a potential bullish reversal accompanied by robust trading volume. Buying on dips is recommended within the range of 1450 to 1400 levels. The Relative Strength Index (RSI) is presently at 40, suggesting that the stock is oversold and presenting an opportunity to buy on dips. The overall trend for SUNPHARMA is bullish, with various technical indicators reinforcing this optimistic outlook."

"Based on these signals, there is potential for the stock to reach target prices of Rs 1700 in the near term if the price crosses above the 1564 level. It is advisable to consider buying on dips, particularly around specific price points, to take advantage of potential retracements in the stock price. To prudently manage risk, implementing a stop-loss (SL) at Rs 1360 is recommended. This precautionary measure is crucial to safeguard investments in the event of an unexpected market reversal," the analyst added.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.