Sun Pharma shares in focus after US FDA issues eight observations for Halol facility

Sun Pharma shares will be in focus on Monday after the company announced that the U.S. Food and Drug Administration (FDA) issued a Form-483 with eight observations for its Halol facility. The observations followed a Good Manufacturing Practices (GMP) inspection conducted between June 2 and June 13, the company said in a regulatory filing on Saturday.

“This is further to our update on Halol dated 16 December 2022,” the company said, referring to the warning letter the U.S. FDA had issued to the facility. The warning letter came close on the heels of the regulator placing the Halol facility under an import alert.

The warning letter had summarised violations concerning current good manufacturing practice (cGMP) regulations.

The Halol plant, one of Sun Pharma’s key manufacturing units, was last inspected in May 2022 and remains under an import alert.

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Sun Pharma reported a 19% year-on-year decline in consolidated net profit for the March quarter at Rs 2,154 crore, compared with Rs 2,659 crore a year earlier. Revenue from operations rose 8% YoY to Rs 12,959 crore, up from Rs 11,983 crore in the corresponding period last year.
However, on a sequential basis, both profit and revenue declined. Profit after tax fell 26% from Rs 2,913 crore in Q3FY25, while revenue dropped 5% from Rs 13,675 crore.
For the full financial year, net profit stood at Rs 10,965 crore, up from Rs 9,610 crore in the previous year. Total revenue rose 8.5% to Rs 52,578 crore from Rs 48,497 crore.
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Sun Pharma share price performance and outlook

According to Trendlyne, the average target price for Sun Pharma is Rs 1,981, suggesting a potential upside of about 17% from current levels. Among 36 analysts tracking the stock, the majority have a ‘Buy’ rating.

Technically, the stock’s Relative Strength Index (RSI) stands at 46.2, indicating neutral momentum. The MACD is at 15.0, is below its Centre Line; this is a bearish indicator.

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Sun Pharma shares closed 0.1% higher at Rs 1,688.7 on the BSE in the previous session, while the Sensex fell 0.7%. The stock is down 11% year-to-date and has dropped 7% over the past six months.

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