Shares of Sun Pharmaceutical Industries tumbled nearly 7 per cent in the intra-day trade on the Bombay Stock Exchange (BSE) Wednesday as investors resorted to profit booking following June quarter earnings.
Sun Pharmaceutical Industries on Tuesday reported 31.22 per cent rise in consolidated net profit at Rs 1,387.48 crore for the first quarter ended June 30, 2019 as compared to Rs 1,057.29 crore in the year-ago period. The healthcare major's net sales grew 15.69 per cent to Rs 8,259.30 crore as against Rs 7,138.83 crore in the corresponding quarter.
Paring previous session gains, Sun Pharma share price declined as much as 6.71 per cent to touch an intra-day low of Rs 408.15 apiece on the BSE. The stock opened higher at Rs 440.70 against the previous close level of Rs 437.55, but soon slipped into negative terrain. The stock saw a surge in selling across the counter as 7.95 lakh shares changed hands on the counter as compared to the two-week average of 3.09 lakh shares.
On Tuesday, shares of Sun Pharmaceutical Industries closed 3.71 per cent higher at Rs 437.55 apiece on the BSE following the announcement of Q1 earnings.
In a similar trend, Sun Pharmaceutical Industries shares were trading 5.12 per cent lower at Rs 416.75 apiece on the National Stock Exchange (NSE). The scrip hit an intra-day low of Rs 408.05.
Brokerages have maintained mixed views on the stock. Global brokerage firm CLSA revised the target price of the stock to Rs 540 from Rs 520 earlier, while Credit Suisse affirmed a neutral call on the stock with a target price of Rs 470.
Morgan Stanley, on the other hand, retained an 'overweight' stance with a target price of Rs 505 and HSBC has a 'hold' recommendation with a target price of Rs 400 per share.
Meanwhile, the BSE benchmark Sensex was trading at 37,431.85, up 473.69 points, or by 1.28 per cent by the time of reporting.
Edited by Chitranjan Kumar