Sun Pharma slides on brokerage downgrade

Sun Pharmaceutical Industries was down 1.38% to Rs 790.70 at 12:25 IST on BSE on reports that a foreign brokerage has downgraded the stock to neutral from buy citing increased competition for the company's US subsidiary.

Meanwhile, the S&P BSE Sensex was down 148.24 points or 0.53% at 28,004.16.

On BSE, so far 4.06 lakh shares were traded in the counter as against average daily volume of 3.03 lakh shares in the past one quarter. The stock hit a high of Rs 811.50 and a low of Rs 787.90 so far during the day. The stock had hit a 52-week low of Rs 706.40 on 24 November 2015. The stock had hit a 52-week high of Rs 965.15 on 20 August 2015. The stock had outperformed the market over the past one month till 12 August 2016, advancing 2.3% compared with 1.24% rise in the Sensex. The scrip had, however, underperformed the market in past one quarter, declining 0.23% as against Sensex's 9.16% rise.

The large-cap company has equity capital of Rs 240.68 crore. Face value per share is Rs 1.

The brokerage reportedly said in a research report that Sun Pharmaceutical Industries' (Sun Pharma) US subsidiary Taro Pharmaceutical Industries (Taro) is facing increasing competition and that Taro's growth is likely to moderate from here on.

Sun Pharma's consolidated net profit surged 265.8% to Rs 2033.71 crore on 22.7% growth in net sales to Rs 8006.68 crore in Q1 June 2016 over Q1 June 2015. The strong growth in bottom line in Q1 June 2016 was due to base effect. The company's bottom line in Q1 June 2015 was adversely impacted by exceptional expense of Rs 685.17 crore. The result was announced during market hours on Friday, 12 August 2016.

Sun Pharmaceutical Industries is the world's fifth largest specialty generic pharmaceutical company and India's top pharmaceutical company.

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