Sun Pharma gains as brokerage maintains 'buy' rating

Sun Pharmaceutical Industries rose 1.01% to Rs 948.70 at 12:11 IST on BSE on reports a foreign brokerage maintained its rating of "high conviction buy" on the stock.

Meanwhile, the BSE Sensex was up 24.09 points, or 0.08%, to 28,470.21.

On BSE, so far 1.62 lakh shares were traded in the counter, compared with an average volume of 5.65 lakh shares in the past one quarter.

The stock hit a high of Rs 957 and a low of Rs 942.65 so far during the day. The stock hit a record high of Rs 1,200.70 on 7 April 2015. The stock hit a 52-week low of Rs 733 on 18 July 2014.

The stock had outperformed the market over the past one month till 16 July 2015, rising 11.88% compared with 6.59% rise in the Sensex. The scrip had, however, underperformed the market in past one quarter, falling 13.79% as against Sensex's 0.77% fall.

The large-cap company has an equity capital of Rs 240.64 crore. Face value per share is Re 1.

The brokerage reportedly said that issues at its unit, Ranbaxy Laboratories' Mohali plant are less severe than those at other plants undergoing remedial action.

Four of the five Ranbaxy plants for the US market are currently not in operation as they are undergoing remedial action with the US Food and Drug Administration (consent decree), reports said. Ohm Labs in the US is the only facility compliant with US FDA cGMP practices.

The brokerage added that resumption of operations at Mohali plant in the medium term could de-risk operations at Halol and Ohm Labs.

Sun Pharmaceutical Industries' consolidated net profit declined 44% to Rs 888.05 crore on 52% growth in net sales to Rs 6144.90 crore in Q4 March 2015 over Q4 March 2014.

Sun Pharmaceutical Industries is an international specialty pharmaceutical company. In 2014, Sun Pharmaceutical Industries acquired Ranbaxy Laboratories for $4 billion in an all-stock deal.

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