Sun Pharmaceuticals Ltd is another good stock pick because of its good performance in the recent past. This stock has become three times in three and half years. Sun Pharma's financial parameters are positive, including revenue, profits and profit margins. This company is also able to beat its revenue targets which is good news. Mostly, we have buy calls on this stock because of its good performance and good fundamentals. This stock is categorized as moderately risky. The quality of the stock is very good and technically is moving upward. But at this price level, the valuation of the company has become expensive. negative free cash flow is a problem for Sun Pharma and may hurt it if not addressed timely.
In this company, promoters have more than 54% share which is a good thing. Both Domestic and Foreign investors have a good share in the investments in this stock which is again a good point for the Sun Pharma Stock. The good point about this stock is that the earning yield of the stock is more than 5% which only a few companies in the market enjoy. The P/E of the company is as far as the other pharmaceutical players but the P/B ratio is on the higher side. Technically, this stock is moving upwards and making new records. We can see more 10-15% upside in this stock soon.
Recently, this stock has made its 52-week high record and now it is slightly down due to a downtrend in the market. Sun Pharma is an almost debt-free company and has delivered good profit growth of 26.4% CAGR for the last 5 years. The company has maintained a healthy dividend payout of 56%. The worrying signs are poor sales growth of the company and low returns on equity. Sun Pharma is a good stock to hold in the portfolio.
Current Price - 1557
Future Trend - 10-15% Increase in six month period
Risk - Moderate Risk
Stock Loss - 1500
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