Q3FY24 Preview: Sun Pharmaceutical Industries: Revenue seen at ₹122,591 Million, PAT at ₹24,292 Million

29 Jan 2024 , 11:22 AM

Result date: January 31, 2024

Recommendation: Buy

Target price: ₹1,420

Sun Pharmaceutical Industries (Sun Pharma) could witness 4% sequential growth in its global specialty revenue to $250 Million in versus $240 Million in the September 2023 quarter, believe analysts at IIFL Capital Services.

Sun Pharma’s Revlimid sales could improve sequentially from $15 Million to $20 Million. Specialty business, resumption of supplies from Mohali, and seasonality benefits for Taro’s portfolio to aid growth. In the India business, analysts at IIFL Capital Services believe Sun Pharma could continue to outperform versus IPM led by Chronic segment and pickup in Acute segment in October 2023. There could be sequential improvement in margin improvement, on the back of higher Specialty and Revlimid sales.

Sun Pharma’s Profit After Tax or PAT could increase 2.3% sequentially.

Important management insights to watch out for:

• Outlook on margins of the Specialty business
• Commentary on complex generics

₹ Million	December 2023 estimates	YoY change	QoQ change
Revenue	122,591	10.4%	2.1%
US revenue (USD Million)	455	7.7%	5.9%
India revenue	37,311	10.0%	(2.9)%
EBITDA	31,864	11.2%	5.4%
EBITDA margin	26.0%	17 bps	80 bps
Profit After Tax	24,292	12.2%	2.3%

Source: IIFL Research