 "Sun Pharma tanks 12% to hit its 52-week low; stock top Sensex loser")
Shares of Sun Pharma tanked over 12% on Monday after the pharma major reported a 14% decline in consolidated net profit at Rs 1,223 crore in the March quarter of fiscal year 2017, while it also guided for a decline in sales for the fiscal year 2018 (FY18).
Reacting to the earnings, the stock of the company dipped as much as 12% to Rs 495.55 and was the leading loser on the Sensex.
On the BSE, over 19 lakh shares of the company exchanged hands against its two-week average of 5 lakh shares.
However, brokerage Angel Broking maintained its BUY rating on the stock, on the back of valuations.
The drug major had reported a net profit of Rs 1,416 crore in Q4 of previous fiscal year.
The India’s largest drugmaker also warned investors that sales could decline in FY18 on account of pricing pressure in the US market and regulatory issues at one of its biggest factories Halol in Gujarat.
"Our fourth quarter performance reflects the impact of the challenging generic pricing environment in the US," Sun Pharma Managing Director Dilip Shanghvi said.
Despite this, the company continues to invest in enhancing specialty pipeline, he added.
Commenting on product pipeline, Shanghvi said: "We will be gradually filing Tildrakizumab in all key markets in the next few quarters. We recently had a pre-NDA meeting with the US FDA for Seciera and we are on track to file this NDA by third quarter of FY18."
During the quarter, the US FDA lifted import alert on its Mohali facility while remediation efforts are on-going to bring back the Halol facility into full cGMP (Current Good Manufacturing Practices) compliance, he added.
The companys board recommended dividend of Rs 3.5 per share of Re 1 each for the year ended March 31, 2017.
The board also re-appointed Shanghvi as the Managing Director of the company for a term of five years from April 1, 2018 to March 31, 2023.
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