Dolat Capital: Sun Pharma Q2 Review - Operational Beat, Sustenance Of Specialty Business Growth Key
Medicinal tablets are arranged for a photograph in Mumbai. (Photographer: Dhiraj Singh/Bloombergg)

Dolat Capital: Sun Pharma Q2 Review - Operational Beat, Sustenance Of Specialty Business Growth Key

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Dolat Capital Report

Sun Pharmaceutical Industries Ltd. reported in-line sales in Q2 (up 6% YoY), but lower opex, improved product mix aided Ebitda margins at 27% beat our margins at 21.5%.

While large part of the operating improvement will taper in ensuing quarters, management’s commentary on two aspects

1. Some portion of costs savings in India might be permanent in nature – digital product launches and

2. some products in the specialty segment to achieve breakeven by FY22; could drive operating leverage by approximately 100-150 basis points going ahead.

Click on the attachment to read the full report:

Dolat Capital Sun Pharma Q2FY21 Result Update.pdf

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