Sun Pharma still not out of red; unsecured loan advances among key concerns

Brokerages seem concerned over the whistleblower case and domestic super-stockist distribution structure

Brokerages on Tuesday said that despite Sun Pharmaceutical’s denial on Monday of allegations of insider trading and other corporate governance lapses, some questions remained unanswered. They added that until the market leader reevaluated structures and transactions that weakened investor confidence, these would continue to overshadow the firm’s performance.

The company’s stock on the BSE shed 2.75 per cent on Tuesday, ending the day at Rs 442.8 per share. On Monday, it had fallen 7.5 per cent, following reports over the weekend that the Securities and Exchange Board of India (Sebi) planned to reopen an insider trading case against Sun Pharma.