Shares of Sun Pharma
were trading ~1.5% lower after opening higher in morning trade on Tuesday.
The stock had gained 1% on the BSE in morning trade after the pharma major held a conference call after market hours on Monday over a recent broker report that raised several corporate governance issues at the company. Another news report had, meanwhile, claimed that the SEBI is planning to reopen the insider trading probe pertaining to the Ranbaxy acquisition.
Dilip Shanghvi has said that the points raised in the report have been sourced from the public domain and are already known to the markets. Some of the points raised are old, unrelated, and misinformed.
On the Ranbaxy acquisition insider trading case, the company said that the meeting which declared the Ranbaxy acquisition was held on Sunday. The legal advisors of the company had told the management that there was no requirement to disclose the news to the exchanges as it was a trading holiday. The company has also said that no insiders had traded in the stock, and hence, this is not material. Read here
According to the media reports, brokerage house JPMorgan has maintained ‘Neutral' on Sun Pharma with a target price of Rs525. The research house said that the medium-term earnings trajectory will be crucial for a sustained stock recovery. It expects a ramp-up in specialty products to improve margins over time.
Currently, Sun Pharmaceuticals Industries Ltd share price is trading at Rs449.70, down Rs5.6, or 1.23%, from its previous close of Rs455.30 on the BSE. The scrip opened at Rs459.50 and has touched a high and low of Rs464.70 and Rs450.05, respectively.