Sun Pharma rallies over 4%, hits all-time high on strong Taro results

MUMBAI: Shares of Sun Pharmaceuticals rose as much as 4.5 per cent in trade on Monday to hit its life-time high of Rs 932, after its subsidiary Taro Pharmaceuticals reported strong set of results for quarter ended September 2014.

Taro’s net profit for quarter ended September 2014 surged to $143.3 million, up 48 per cent, from $96.3 million, in the same quarter a year ago. Its margins increased to 63.9 per cent vs 58.6 per cent, Year-on-Year.

According to analysts, the results will boost Sun Pharma’s consolidated results which are due on Thursday.

"Taro’s recent round of price hikes are likely to fuel near-term profit growth and EBITDA margin expansion," said Ambit Capital report.

"We expect revenue, EBITDA and net profit CAGR of 35 per cent, 26 per cent and 48 per cent over FY14-17E for Sun Pharma (consolidated);" the report added.

At 10:10 a.m.; the stock was at Rs 927.10, up 3.98 per cent, on the BSE. It rallied 4.52 per cent intraday to hit life-time high of Rs 932.