Sun Pharma shares fall 5.7% after the first quarter of the first quarter: What should investors do now? | Einsmark news

Sun Pharmaceutical Industries has seen its shares with 5.7 percent to a £ 1,608,30 intraday low on the BSE on Friday, following the announcement of the first quarter for FY26. The decline of the share was largely caused by a sharp drop of 20 percent in the consolidated net profit to £ 2.278 for the June 2025 quarter, compared to £ 2,836 in the same quarter last year. However, on a consecutive basis, the net profit rose 6 percent from £ 2.150 crore reported in the March 2025 term. The fact that several brokers revised their target prices for the Pharma Major contributed the negative sentiment. Despite the profit fall, Sun Pharma achieved a healthy top performance. The consolidated turnover grew from more than 9 percent year-on-year to £ 13.851, driven by a solid momentum over its most important markets-including India, the US and the rest of the world (drive) geographical areas. Ebitda rose 19.2 percent to £ 4,302 crore, with margins expanding to 31.1 percent from 28.5 percent in the same period last year. Dilip Shanghvi, chairman and managing director of Sun Pharma, said the company delivers a strong quarter with a constant market growth. “India still shows a strong momentum and makes a significant contribution to the overall performance. The US launch of LeQselvi is an important milestone, expanding our dermatology portfolio and strengthening our innovative medicine business,” he said. Brokers respond: Pruning targets, look at specialty growth HDFC securities have reduced its FY26 and FY27 EPS rams by 7 percent and 6 percent respectively and reduce the target price to £ 1.960, which appreciates the stock at 33x Q1FY28E EPS. Although it is expecting a strong momentum in the specialty segment-including a ramp in LeQselvi and the launch of UNDoxCyt, HDFC SEC noted that an increased investment spending of USD 100 million from Q2FY26 and a tax guidance of 25 percent negative. However, it maintained a positive prospect of India formulations and continued R&D spending (6-8 percent of sales), which expects a drug to high-single-digit income growth lane and stable Ebitda expansion. JM Financial maintained a ‘buy’ rating with a target price of £ 1.999. The broker strongly named Sun Pharma’s Q1FY26 performance as a result of a better product mix and lower cost of goods sold. JM highlights a strong 14 percent growth in India in India and the 17 percent growth in world -specialty. While American generics remained under pressure, export of emerging markets and ROW remained firm. The broker expects the new specialty launches, such as LeQselvi and UndoxCyt, along with the expansion of Ilumya and Winlevi, to drive the next growing growth. Sun Pharma is projected to make an 11 percent revenue Cagr on FY25 – FY28, supported by a healthy cash balance of $ 3.5 billion and continued focus on oncology, ophthalmology and dermatology. Motilal Oswal Financial Services lowered its target price to £ 1,960 of £ 2,000, while maintaining a ‘buy’ call. The broker expects Sun Pharma’s innovative and brand -portfolio to continue to provide earnings support, although it has cut FY26 and FY27 EPS estimates with 5 percent and 4 percent respectively due to higher operating costs and tax expenses. It is believed that regulatory clarity on the US rates is an important monitor, but that recent launches such as LeQselvi and Ilumya Pipeline launching increase the company’s specialty segment. It expects a 14 percent CAGR in earnings by FY27. Disclaimer: The views and recommendations above are those of individual analysts or brokerage companies, and not of currency. We advise investors to check with certified experts before making investment decisions.