Shares of Sun Pharma rose 1 percent in early trade on October 6 after the pharma giant reported its acquisition of a 37.76-percent stake in Ezerx Health. At 9:48 am the Sun Pharma stock was trading 0.74 percent higher at Rs 1130.12 on NSE. Sun Pharma said it has decided to acquire a 37.76 percent stake in Ezerx Health Tech Private Limited, which is engaged in production, marketing and distribution of non-invasive diagnostic and ancillary medical device. The acquisition will cost Rs 28.69 crore, as detailed in the exchange filing by Sun Pharma with BSE on October 5.

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EzeRx was incorporated on 3rd July, 2018 and the company belongs to the Pharmaceuticals and Healthcare sector. The notification further stated that the acquisition of shares is expected to be completed by October 2023 subject to satisfactory completion of certain conditions.

Also Read: Sun Pharma to acquire nearly 38% stake in Ezerx Health Tech for Rs 28.69 cr

Sun Pharma Q1 results and other recent developments in the company

Sun Pharmaceutical Industries Ltd. on August 3 reported a 1.9 percent year-on-year (YoY) fall in its consolidated net profit at Rs 2,022.5 crore for the April-June quarter. It reported consolidated net profit of Rs 2,060.8 crore for the same quarter last year. With this the drug maker’s net profit also lagged Moneycontrol’s estimate of Rs 2,119.4 crore. It was a one-time exceptional loss of Rs 322.87 crore. Excluding the exceptional loss, the net profit came around Rs 2,345.4 crore, up 13.8 percent year-on-year.

The Mumbai-based drug maker also reported a 11 percent increase in consolidated revenue at Rs 11,941 crore from Rs 10,761.7 crore in the year-ago period. The Street had pegged revenue at Rs 11,606.5 crore.

Also Read: Sun Pharma Q1 results: Net profit down 1.9% to Rs 2,022.5 crore, lags estimate

The company reported EBITDA of Rs 3,332 crore for the quarter as against Rs 2,884.4 crore in the corresponding quarter last fiscal. The EBITDA margin for the quarter is 27.9 percent, up 230 basis points from the same period a year ago. The company has reported R&D investments at Rs. 679.6 crore compared to Rs. 460.8 crore for the same quarter last year. The company also informed that its specialty R&D pipeline includes five molecules undergoing clinical trials.

Brokerage Views

Brokerage firm HSBC has given a ‘buy’ rating to the Sun Pharma stock with a target price of Rs 1275 per share in a recent report. Brokerage house Nomura has also maintained its bullish stance on Sun Pharma with a target price of Rs 1313.

Stock Performance

Sun Pharma stock has given a return of 11.45 percent over the last six months. The benchmark Nifty50 index has also given a similar return of 11.49 percent over the last six months.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Shares of Sun Pharma rose 1 percent in early trade on October 6 after the pharma giant reported its acquisition of a 37.76-percent stake in Ezerx Health. At 9:48 am the Sun Pharma stock was trading 0.74 percent higher at Rs 1130.12 on NSE. Sun Pharma said it has decided to acquire a 37.76 percent stake in Ezerx Health Tech Private Limited, which is engaged in production, marketing and distribution of non-invasive diagnostic and ancillary medical device. The acquisition will cost Rs 28.69 crore, as detailed in the exchange filing by Sun Pharma with BSE on October 5.

Follow our live blog for all the market action

EzeRx was incorporated on 3rd July, 2018 and the company belongs to the Pharmaceuticals and Healthcare sector. The notification further stated that the acquisition of shares is expected to be completed by October 2023 subject to satisfactory completion of certain conditions.

Also Read: Sun Pharma to acquire nearly 38% stake in Ezerx Health Tech for Rs 28.69 cr

Sun Pharma Q1 results and other recent developments in the company

Sun Pharmaceutical Industries Ltd. on August 3 reported a 1.9 percent year-on-year (YoY) fall in its consolidated net profit at Rs 2,022.5 crore for the April-June quarter. It reported consolidated net profit of Rs 2,060.8 crore for the same quarter last year. With this the drug maker’s net profit also lagged Moneycontrol’s estimate of Rs 2,119.4 crore. It was a one-time exceptional loss of Rs 322.87 crore. Excluding the exceptional loss, the net profit came around Rs 2,345.4 crore, up 13.8 percent year-on-year.

The Mumbai-based drug maker also reported a 11 percent increase in consolidated revenue at Rs 11,941 crore from Rs 10,761.7 crore in the year-ago period. The Street had pegged revenue at Rs 11,606.5 crore.

Also Read: Sun Pharma Q1 results: Net profit down 1.9% to Rs 2,022.5 crore, lags estimate

The company reported EBITDA of Rs 3,332 crore for the quarter as against Rs 2,884.4 crore in the corresponding quarter last fiscal. The EBITDA margin for the quarter is 27.9 percent, up 230 basis points from the same period a year ago. The company has reported R&D investments at Rs. 679.6 crore compared to Rs. 460.8 crore for the same quarter last year. The company also informed that its specialty R&D pipeline includes five molecules undergoing clinical trials.

Brokerage Views

Brokerage firm HSBC has given a ‘buy’ rating to the Sun Pharma stock with a target price of Rs 1275 per share in a recent report. Brokerage house Nomura has also maintained its bullish stance on Sun Pharma with a target price of Rs 1313.

Stock Performance

Sun Pharma stock has given a return of 11.45 percent over the last six months. The benchmark Nifty50 index has also given a similar return of 11.49 percent over the last six months.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.