Wednesday, 29 October 2008

Sun Pharmaceutical an outperformer: Karvy

Karvy Stock Broking has maintained its outperformer rating on Sun Pharmaceutical Industries with a target of Rs 1387 in its October 29, 2008 research report. "The company's net revenues for the quarter were up by 76 % to Rs 11778 million. Profits for the quarter have moved up by 135 % to Rs 5127 million with the help of higher other income."

"We have marginally decreased our FY 2009 estimates by 3.4 % to Rs 87.9 mainly on account of lower gross margins, higher staff and other expenses despite higher revenue traction. We have marginally increased our FY 2010 estimates by 3.1 % to Rs 99.1 mainly on back of higher other income. We however downgrade our price target on account of compression in valuations. We value the core business of the company at 18x FY 2009E and value it at 1272 while we value the FTF opportunity of Rs 28.4 at 4x and value it at Rs 114. We arrive at a value of Rs 1,387 for the company. We however continue to rate the stock as Outperformer," says Karvy Stock Broking's research report.

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Source: Moneycontrol

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