Sun Pharma stock soars on Q4 results, robust sales outlook

Sun Pharmaceutical Industries shares rose more than 3 percent on Wednesday after it reported net profit rose more than expected and after management guided for robust sales growth in FY14.

The Mumbai-based company said consolidated net profit rose 23 percent to Rs 1012 crore for the January-March quarter. The company also announced a one-for-one issue of bonus shares.

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Sun Pharmaceutical Industries announced that the board has recommended payment of dividend of 500% or Rs 5 a share of Re 1 each for the year ended Mar. 31, 2013. [/caption]

Sun Pharma expects revenue growth of 18-20 percent for the current fiscal year ending March 2014, its managing director said on Tuesday.

Brokerage CLSA has initiated a buy on the stock with a target of Rs 1,220 per share, citing premium valuation. It added that Sun Pharma's US business is the key growth driver.

The board has also approved bonus issue in the ratio of 1:1 i.e. one share for every one share held on the record date. It has also declared a dividend of Rs 5 per share on face value of Rs 1 each.

At 10 am, the stock was up 4.5% to Rs 1,040, on the BSE.