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Sun Pharma | Sun Pharma touches 52-week low over slumped Q4

Sun Pharmaceuticals Industries has witnessed a steep fall on the first trading day of this week.

The stock has touched its intraday low of Rs 493 per share down by 13.3% on BSE as of 10:19 hrs which is it’s 44 -month low. The company reported its consolidated results for Q4 FY17 missing the Street expectations. The company posted a 14% decline in its net profit for Q4 FY17 on a Y-o-Y basis.

The consolidated revenue for the quarter touched Rs 7137 crore, reporting a 6.8% decline on a Y-o-Y basis. The revenue came in lower mainly due to the lower sales of the company in the US generics market. The company’s US business witnessed dip of 34% to USD 381 million in the Q4 FY17.

The pharma industry has been reeling under pressure due to the price erosion in the US markets. The Indian pharma companies draw around 40% of their total revenues from the US market. The company US market sales declined 34% from a year ago & 24% sequentially. Therefore, the investors are cautious as the company’s US business can be seen weak in the Q4FY17.

Stock View:

Sun Pharmaceuticals Industries Ltd is currently trading at Rs 496.25, down by Rs 72.3 or 12.72% from its previous closing of Rs 568.55 on the BSE.

The scrip opened at Rs 532.8 and has touched a high and low of Rs 532.8 and Rs 493 respectively. So far 22744946(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs 136411.7 crore.

The BSE group ‘A’ stock of face value Rs 1 has touched a 52 week high of Rs 854.5 on 05-Aug-2016 and a 52 week low of Rs 564.9 on 26-May-2017. Last one week high and low of the scrip stood at Rs 652.85 and Rs 564.9 respectively.

The promoters holding in the company stood at 54.39 % while Institutions and Non-Institutions held 33.49 % and 12.13 % respectively.

The stock is currently trading below its 200 DMA.