Gap Between Sun Pharma’s Price And Analyst Target Widest In 15 Months
The gap between share price of India’s largest drugmaker and the analysts’ target price is at its widest in 15 months after the stock slumped nearly 8 percent on Monday.
The difference between stock price of Sun Pharmaceutical Industries Ltd. and its 12-month consensus target rose to more than 28 percent, the most since August 2017, according to Bloomberg data.
Sun Pharma tumbled as much as 13.21 percent, the most in a year and a half, yesterday on a report that the market regulator may reopen its probe into an insider trading case against the company and alleged lapses by some of its promoters. With this, the stock has declined more than 21 percent in 2018, making it the second-worst performer on the Nifty.
Edelweiss cut its target price for the stock to Rs 430 apiece, implying a potential downside of 5.5 percent from the last regular trade. The research firm has sought more clarity on Sun Pharma’s domestic business being routed via a third party, Aditya Medisales, and its unsecured loans. Unless the company re-evaluates some of its structures and transactions, Edelweiss said, these issues will overshadow its overall performance.
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