Q4FY23 Preview: Sun Pharmaceutical Industries: Revenue seen at Rs. 106,325 million, PAT at Rs. 18,980 million

22 May 2023 , 09:47 AM

Result date: 26^th May, 2023

Recommendation: Buy

Target price: Rs. 1,150

Analysts at IIFL Capital Services expect Sun Pharmaceutical Industries (Sun Pharma) to post a strong show for the March 2023 quarter. While sequential sales growth could decline owing to Halol import alert; the same is likely to be offset by ramp-up in the Specialty business and Taro. Global Specialty revenue is pegged at $225 million in Q4 versus $222 million in Q3 (ex-milestones).

The company’s EBITDA margin could expand 193 basis points over the year-ago quarter.

Profit After Tax (PAT) growth is estimated at 20% as compared to the year-ago quarter, though it could decline 12% sequentially.

	March 2023 estimates	YoY change	QoQ change
Revenue (Rs. mn)	106,325	13%	(4)%
EBITDA (Rs. mn)	26,050	23%	(9)%
EBITDA margin (%)	24.5%	193 bps	(132) bps
Profit After Tax (Rs. mn)	18,980	20%	(12)%

Source: IIFL Research