Sun Pharmaceuticals, the leading Indian pharmaceutical company, reported a 5% year-on-year increase in its net profit for the second quarter, ending in September. The net profit reached Rs 2,376 crore, aligning with consensus and net profit estimates tracked by Bloomberg.
The firm's consolidated revenue for the same quarter surpassed expectations, registering an 11.3% rise to Rs 12,192 crore against an estimated Rs 12,138 crore. The Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) also saw an increase of 7.5% to Rs 3,179 crore. However, this fell short of the Rs 3,251 crore estimate.
Despite these financial gains, Sun Pharma's margin experienced a slight dip to 26.1%, falling below the anticipated 26.80%. In line with these developments, Sun Pharma's shares on the stock market climbed by 1.05%, marking a contrast to the Nifty 50's decline of 0.34%.
InvestingPro Insights
With an adjusted market cap of 4220.0M USD and a P/E ratio of 14.72, Sun Pharmaceuticals presents an attractive investment opportunity based on InvestingPro data. The company's gross profit for the last twelve months as of Q2 2023 was an impressive 1291M USD, reinforcing the company's robust financial health.
InvestingPro Tips also highlight Sun Pharmaceuticals as a stable investment. The company has consistently raised its dividend for five years straight, indicating a strong commitment to rewarding its shareholders. Further, it operates with a moderate level of debt, ensuring a balanced financial structure.
Sun Pharmaceuticals is also recognized for its impressive gross profit margins and its relatively low P/E ratio compared to its near-term earnings growth. This suggests that the company is undervalued and could be a potential bargain for investors.
In total, InvestingPro offers 12 additional tips for Sun Pharmaceuticals, providing valuable insights for potential investors. For further details and tips, consider exploring InvestingPro's comprehensive product offerings.
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