Sun Pharma gains 5% as Sebi finds no merit in allegation of fraud

HDFC Securities has 'buy' rating on Sun Pharma with a 12-month target price of Rs 545 as the brokerage expects a recovery in the profitability (24 per cent margin) by FY21E.

Shares of Sun Pharmaceutical Industries rallied 5 per cent to Rs 432 apiece in the early morning trade on the BSE on Thursday on reports that the market regulator Securities and Exchange Board of India (Sebi) has found no merit in the allegations of fraud against the company.

At 10:16 am, Sun Pharma was trading 3 per cent higher at Rs 425, and was the top gainer among the S&P BSE Sensex pack. In comparison, the benchmark index was down 0.54 per cent or 200 points at 37,251. The counter witnessed huge trading volumes with a combined 7.2 million