Revival of fortunes seen for Sun Pharma
The Sun Pharma stock has tested investors' patience by underperforming the broader indices for a long period. Even recently, after disappointment with December quarter performance, it had slipped to ~622.5 levels. However, things seem to be turning around for the company, part of which is also reflecting in the stock's recovery to ~707.25 now. Large part of this 14 per cent rally has been fuelled by the clearance of Mohali plant by the US Food and Drug Administration (FDA).For one, the Mohali plant had been under import alert since September 2013. While this suggests that drug filings from the plant before the period may not have much commercial significance now, its clearance has renewed confidence in the management's ability to resolve FDA issues. The company not only had inherited Ranbaxy's plants (including Mohali) with FDA issues, but its own major plant at Halol (Gujarat) received warning letter; its resolution is crucial to drive growth. With no clarity on timeline for...20-03-2017
