Shares of Sun Pharmaceutical Industries Ltd rose almost 2 per cent as CLSA raised target price to Rs 1,160 from Rs 1,130, citing potential of Ranbaxy’s Mohali plant. The stock rallied 1.9 percent today and 10 percent in seven sessions. CLSA maintained “high conviction buy”.
At 11:50 pm, Sun Pharma shares gained 0.70 per cent on BSE. On NSE, it traded 0.57 per cent high.
CLSA said that issues at unit Ranbaxy’s Mohali plant less severe than those at other plants undergoing remedial action.
It added that resumption of operations at Mohali plant in the medium term could de-risk operations at Halol and Ohm Labs, and may provide an upside to the $250 mln synergies’ estimate.