Sun Pharmaceutical Industries’ share price will remain in focus on Wednesday after the company announced its plan to sell its entire holding in its Japanese subsidiary.
In an exchange filing, Sun Pharma stated, “The company has entered into an agreement with Zaza Industrial Holdings K.K., Japan, under which it has agreed to sell 100% of its shares in Sun Pharma Japan Technical Operations, a step-down subsidiary (through its subsidiary, Sun Pharma Japan Limited).”
Consequently, Sun Pharma Japan Technical Operations shall cease to be a subsidiary of the company.
The expected date of completion of sale/disposal will be January 31, 2025.
Turnover of Sun Pharma Japan Technical Operations is less than 0.5% of Sun Pharma’s consolidated turnover for FY 2023-24.
The said subsidiary operates a plant in Saitama, Japan, which manufactures products for Sun Pharma Japan. As part of the sale agreement, the plant is contracted to supply products to Sun Pharma until May 2026.
As per Trendlyne data, the average target price of the stock is Rs 2,047, which indicates an upside of 9% from the current market prices. The consensus recommendation from 38 analysts for the stock is a ‘Buy’.
Technically, the stock’s relative strength index (RSI) is at 67.8. According to Trendlyne, an RSI below 30 is considered oversold, while above 70 indicates overbought conditions. Additionally, the MACD is at 5.6, which is above its center and signal Line, this is a bullish indicator.
On Tuesday, Sun Pharma shares closed at Rs 1884.5, up 0.12% on the BSE, while the benchmark Sensex declined 0.14%. The stock has surged 50% in the past 12 months and 88% over the past two years, with the company’s market capitalization now at Rs 4,52,143 crore.
Source: Economic Times