Sun Pharma near its 7-year high ahead of second quarter results: Buy, sell or hold? Expert suggests strategy
Sun Pharmaceuticals Industries stocks gained on Tuesday on positive July-September quarter estimates. The scrip quoted Rs 1034 apiece on NSE, up 1 per cent, in afternoon session. The drug maker also hit a fresh 52-week high of Rs 1047 today which also is the counter's intraday high. Earlier on Monday, the counter hit a seven-year high, entering into four-digit territory.
Technical Analyst Nilesh Jain suggested to wait for corrections in Sun Pharma stocks before making any fresh buying as the counter has seen a good rally over the past few trading sessions.
The Mumbai based pharm company is slated to announce its second quarter earnings for the financial year 2022-23 (Q2FY23) later today.
Rajasthan Assembly Election Exit Polls Results 2023 LIVE: BJP holds edge in close fight with Congress in Rajasthan — Check BJP, Congress seat projection
Mizoram Assembly Election Exit Polls Results 2023: Will MNF retain power in state? Here is what exit polls suggest
Madhya Pradesh Election Exit Polls Results 2023 Live: Congress and BJP neck and neck in Madhya Pradesh; Check BJP, Congress seats
Chhattisgarh Exit Poll Results 2023 Live: Will Congress retain power in state? Here is what exit polls suggest
India vs Australia 4th T20I Free Live Streaming: When and Where to watch IND VS AUS T20I series Match LIVE on Mobile Apps, TV, Laptop, Online
ICC T20 World Cup 2024: Uganda creates history, qualifies for T20 World Cup; Namibia in; Zimbabwe exits
While, the stock has seen gains, the trading volumes have come down as investors may wait to take fresh look after the company declares its results. The trading volume was around 11 lakh shares, which was 2-3 times until Monday.
According to Zee Business estimates, the company’s revenue may come at Rs 10,808 crore, and profit after tax at Rs 1.964.7 crore, while EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortisation) is likely to be at Rs 2781.7 crore and, margins around 25.7 per cent in Q2
Technical Analyst Nilesh Jain calls it a “Buy on Decline” counter, citing gains, it has made over the last two trading sessions.
On technical chart the stock has been making a rounding bottom formation, forming higher tops and higher bottoms now. A profit booking is imminent, he said. The overall outlook is positive, the Centrum Broking analyst said. It is trading near its 52-week (Rs 1030) and 7-year high (Rs 1058), Jain said.
Investors holding this stock must keep it for price target of Rs 1100.
The right level to enter this stock is Rs 1000.
(Disclaimer: The views/suggestions/advises expressed here in this article is solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)