Sun Pharma Eyes Strong Growth
- 23rd May 2025
Aaj Ka Bazaar
U.S. stocks closed sharply lower on Wednesday as Treasury yields surged, raising concerns that U.S. government debt could increase by trillions of dollars if Congress approves President Donald Trump’s proposed tax-cut bill. The Dow Jones Industrial Average fell by 816.80 points, or 1.91%, closing at 41,860.44, while the S&P 500 dropped by 95.85 points, or 1.61%, to finish at 5,844.61. Asian shares also declined, and Treasuries continued to slide when trading opened on Thursday, following the losses on Wall Street linked to worries about the U.S. increasing deficit. Japan’s Nikkei index fell to a two-week low, impacted by rising U.S. Treasury yields and a stronger yen. The Nikkei dropped 0.8% to 37,007.79, after hitting a low of 36,873.61, the lowest level since May 8. Considering the global cues, the domestic market, the Sensex and Nifty 50 indices are expected to open lower on Thursday due to a sell-off in global markets. Investor sentiment has been shaky since Moody’s downgraded the United States’ credit rating last Friday, amid concerns regarding the country’s growing debt. On a stock-specific level, shares of IndusInd Bank are anticipated to be in focus following its report for Q4FY25, which revealed a net loss of Rs. 2,236 crore, compared to a profit of Rs. 2,346 crore during the same period last year. This marks the lender’s largest quarterly loss ever, and the company noted suspicions that some employees may have engaged in fraudulent activities, which led to accounting discrepancies previously disclosed by the bank.
Markets Around Us
BSE Sensex – 81,099.56 (0.18%)
Nifty 50 – 24,617.70 (0.03%)
Bank Nifty – 54,872.30 (-0.63%)
Dow Jones – 41,894.79 (0.12%)
Nasdaq – 18,925.73 (0.28%)
FTSE – 8,793.26 (-0.54%)
Nikkei 225 – 37,231.04 (0.69%)
Hang Seng – 23,677.44 (0.57%)
Sector: Pharmaceuticals
Sun Pharma Q4 Misses PAT Estimate
The pharma giant reported a steady financial performance in Q4FY25, supported by growth across both domestic and international markets. Meanwhile, net profit was impacted by exceptional items and higher tax provisions. The company has consistently gained market share, showing steady growth within this segment. The company’s strategic approach to increasing market share across various divisions is mainly driven by volume and new product launches. The company’s R&D efforts span specialty and generic businesses, and it continues to invest in building the pipeline for various markets. The company will improve its financial performance as we advance, aided by market share gains in India and strong momentum in the Global Specialty segment. The near-term specialty pipeline remains promising, with upcoming launches such as Leqselvi and Unloxcyt via the recently announced Checkpoint acquisition, which is expected to enhance patient outcomes and drive growth. Management remains focused on scaling the Specialty portfolio, which is set to become an increasingly significant contributor to overall revenues.
Why it Matters:
Sun Pharma’s Q4FY25 performance reflects its resilient growth strategy, driven by strong contributions from both domestic and international markets. While net profit came in below expectations due to exceptional items and higher tax provisions, the company’s consistent market share gains and focus on volume growth and new product launches underline its operational strength. Strategic investments in R&D and a promising specialty pipeline, including upcoming launches like Leqselvi and Unloxcyt, position Sun Pharma to enhance patient outcomes and drive long-term revenue growth. The management’s emphasis on scaling the Specialty segment further reinforces the company’s trajectory toward sustained financial and market leadership.
NIFTY 50 GAINERS
TRENT – 5342.00 (2.62%)
GRASIM – 2741.40 (2.50%)
ETERNAL– 233.09 (1.78%)
NIFTY 50 LOSERS
SUNPHARMA – 1656.70 (-3.61%)
HINDALCO – 647.70 (-0.28%)
ICICIBANK – 1438.10 (-0.28)
Sector : FMCG
ITC Ltd. posted a resilient performance in Q4FY25, amidst a subdued demand environment and sharp escalation in input costs. The company improved its market position through strategic product differentiation and premiumisation. This performance is expected to continue in the coming years, supported by strong traction in the cigarette business and expected demand recovery. Further, the recent acquisitions in the food and paper businesses are expected to accelerate the growth. Additionally, the completion of a state-of-the-art facility to manufacture and export Nicotine and Nicotine derivative products is expected to increase Nicotine exports. Looking ahead, the company’s strategic price hikes, cost management, and operational efficiencies, such as supply chain optimisation, smart procurement, and productivity gains through automation and digital technologies, further strengthen its competitive edge. With a growing distribution network and robust execution capabilities, ITC is well-positioned to maintain its leadership in core categories while scaling its FMCG and agri-value chains. As India’s consumption story continues to evolve, ITC’s diversified portfolio, innovation-driven approach, and commitment to creating long-term stakeholder value will support consistent growth and strong shareholder returns in the years ahead.
Why it Matters:
This matters because ITC’s resilient performance amid cost pressures and weak demand highlights its strategic agility and operational strength. Its focus on premiumisation, innovation, and supply chain optimisation positions it for sustained growth. With expanding exports and strong execution, ITC is set to capitalize on India’s evolving consumption landscape.
Around the World
Most Asian stocks rose on Friday, helped by a drop in U.S. Treasury yields, though concerns over U.S. government debt kept markets cautious. Japanese shares, including the Nikkei 225 and TOPIX, gained 0.8% even after stronger-than-expected inflation data. Rising local wages boosted consumer spending, helping Japan’s economy and lifting the yen and bond yields. Gains in tech and chip stocks also supported the rally.
Chinese markets performed well this week, helped by easing U.S. trade tensions and hopes of more economic support from Beijing. The CSI 300 and Shanghai Composite both rose, while the Hang Seng gained 1.1% for the week despite weak earnings from Chinese tech firms. Other Asian markets were mixed. Japan’s weekly performance was down 1.4%, pressured by a strong yen. India’s Nifty 50 fell 1.6% after recent highs. Australia’s ASX 200 and South Korea’s KOSPI had small gains Friday but lost ground for the week. Singapore’s index slipped 0.2%.
Option Traders Corner
Max Pain
Nifty 50 – 24650
Bank Nifty – 55000
Nifty 50 – 24603 (Pivot)
Support – 24,468, 24,328, 24,193
Resistance – 24,744, 24,878, 25,091
Bank Nifty – 54838 (Pivot)
Support – 54,679, 54,418, 54,260
Resistance – 55,099, 55,257, 55,518
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