Sun Pharmaceutical rallied over 5 per cent early on Monday, spurred by its earnings show.The company on Friday reported 6.93 per cent rise in consolidated profit at Rs 1,375.62 crore for the quarter to March, which was above ET NOW poll of Rs 895 crore.
The scrip was trading 5.06 per cent up at Rs 490.15 at around 9.28 am.
The BSE Sensex was up 145 points, or 0.42 per cent, at 35,070.62.
On the financial performance, Dilip Shanghvi, Managing Director, said: "Our Q4 performance is in line with our guidance.
Over the last four quarters, we have been able to record a gradual improvement in performance despite a challenging US generic pricing environment."Global brokerage firm CLSA revised target price of Sun Pharma upwards to Rs 600 from Rs 445 earlier.
EPS to nearly double as monetisation of specialty pipeline begins.
Upgrade Sun Pharma from Sell to Buy as we believe its earnings bottomed, CLSA said.Macquarie upgraded Sun Pharma to Neutral from Underperform with a target price of Rs 460.
Sun Pharma has balanced risk-reward.
The US sales are also showing some signs of stability and the company is guiding for improved sales in the US, the brokerage house said.However, Jefferies maintained Hold on Sun Pharma with a target price of Rs 500 against Rs 520 earlier.
Q4 results were ahead of expectations led by a recovery in the US.
Management guidance was muted at low double-digit revenue growth in FY19 and valuations at 20xFY20 leave no room for misses, Jefferies said.