Last updated: 31 Jul, 2020 | 02:27 pm
Sun Pharma has reported a net loss of ₹1,656 crore in Q1FY21, compared to a net profit of Rs 1,387 crore during the same period last year. Analysts had estimated a profit of about ₹1000 crore.
Sun Pharma’s Q1 performance was mainly impacted due to exceptional items. EBITDA margin has seen an improvement to 23.1% from 22.8% in the same period previous fiscal. While sales in India rose marginally, sales across other geographies were impacted due to lockdown in respective areas.
Pharma stocks are seeing a lot of traction as a defensive bet, as investors’ risk appetite has gone down substantially in the current times. While the profitability of all other industries has been severely impacted, pharma companies are expected to remain relatively immune. Sun Pharma shares have gained by over 72% since its March lows to touch a fresh 52-week high of ₹541 on NSE this afternoon. The stock is currently trading at a PE of 38 as compared to the sector PE of about 33.
Our VGQM model has a HOLD rating on the stock.