Shares of Sun Pharmaceutical Industries continued to gain momentum for the fifth straight session, surging nearly 5 per cent to Rs 427.65 on the Bombay Stock Exchange (BSE) on Monday after Morgan Stanley 'double upgraded' the stock on hopes of earnings revival. In the last one week, Sun Pharma share price has rallied over 15 per cent, as against to 0.37 per cent decline in the Indian benchmark index BSE Sensex.
The global brokerage agency has maintained a target price of Rs 505 per share, nearly 24 per cent higher as compared to Friday's closing level of Rs 407.70.
Extending its gaining streak, Sun Pharma shares opened higher at Rs 415.50 apiece and touched an intra-day high of Rs 427.65 during the day's trade. The Sun Pharma share price closed trade at Rs 422.40, up 3.61 per cent, on the BSE.
There was also spurt in volume trade as 10.48 lakh shares changed hands on the counter as compared to the two-week average of 4.38 lakh shares.
In a similar fashion, stocks of Sun Pharma ended 3.12 per cent higher at Rs 420.40 on the National Stock Exchange. The scrip opened higher at Rs 416.25 and touched an intra-day high of Rs 427.70.
"We are double upgrading Sun stock to 'Overweight' in expectation of a revival in its earnings from F21 onwards, driven by steady growth in the base business coupled with plateauing of the current elevated cost structure, leading to positive operating leverage," Business Standard quoted analysts at Morgan Stanley as saying this in a report.
In a fresh development, Sun Pharmaceutical Industries on Monday informed the exchange that it has launched Ezallor Sprinkle capsules, used for the treatment of elevated lipid disorders in people who have difficulty swallowing, in the US market.
"With the introduction of Ezallor Sprinkle, Sun Pharma continues our commitment of providing a portfolio of alternative formulation products to address the needs of people who have difficulty swallowing, which is especially prevalent among residents in long-term care facilities," said Abhay Gandhi, CEO, North America, Sun Pharma.
Meanwhile, the BSE benchmark Sensex closed trade at 38,896.71, up 160.48 points, or by 0.41 per cent, on Monday.
Edited by Chitranjan Kumar