Exited in 2009 -Taking a re-look at LCI corp. No hostile here, the former chairman owns over 40%.
Acquisitions, products to drive growth While it will be difficult for Sun Pharma to replicate the Dec quarter performance, a strong product pipeline and cash kitty of $1 bn are seen as key growth drivers Ram Prasad Sahu / Mumbai Feb 15, 2012, 00:31 IST
India’s most valuable pharma company, Sun Pharmaceutical Industries’ stock is up two per cent over the past two days, following better than expected results. While gains from Taro led to the 37 per jump in consolidated revenues, apart from strong operational performance, lower tax rates and higher interest income also helped net profits surge 91 per cent in the quarter ended December 2011.
The management has since revised its revenue growth outlook upwards, to 32-34 per cent from the earlier 28-30 per cent for 2011-12, largely due to a weaker rupee. Chairman and managing director Dilip Shanghvi, in an investor conference call, said Sun Pharma (sitting on a cash pile of about $1 billion — about Rs 5,000 crore) was looking at acquisitions in the American and emerging markets.
Given the strong growth prospects in both the domestic and US business, and a robust product pipeline, analysts have revised upwards their earnings estimates by five to eight per cent, while cautioning that Taro’s performance was not sustainable.
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