Sun Pharma touches record high, taking its m-cap above combined mkt value of DRL, Lupin & Cipla
MUMBAI: The stock of Sun Pharmaceuticals hit a record high on Tuesday, catapulting its market capitalisation above that of Dr Reddy’s Laboratories, CiplaBSE 1.00 % and LupinBSE 2.07 % put together. An impressive revenue and profit growth, benefits from overseas acquisitions, currency depreciation and healthy sales of its cancer drug Lipodox took the stock to a record high of Rs 997.85, up by almost a percent on Tuesday.
About 30 of 50 analysts have a buy recommendation on the stock, which is currently trading above all analyst targets. The company trades at a price-to-earning multiple of 36 times its trailing 12 months profits compared to Dr Reddy’s 23.36 times, Cipla’s 21.40 times and Lupin’s 30 times.
Given its steep climb, some analysts expect a correction in the stock, which, if it happens, is viewed as a good “buying” opportunity.
“Sun has run up a lot over the last few weeks. The stock could correct 5-10%, which we would view as a good opportunity to add to positions in India’s best generic company (world’s second-largest by market cap after Teva),” said Morgan Stanley in a report on Monday.
Source: Economic times
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