Shares of Sun Pharmaceutical Industries plunged over 9 per cent today, wiping out Rs 20,864 crore from its market valuation, after the company's fourth quarter earnings came below market expectations.
After falling 9.96 per cent to Rs 869.50 in intra-day trade at the BSE, shares of Sun Pharma finally ended at Rs 878.95, down 8.99 per cent.
At the NSE, it dipped 9.15 per cent to close at Rs 877.65.
"Sun Pharma corrected by almost 10 per cent today due to under-expected Q4 results," said Rakesh Goyal, Senior Vice President, Bonanza Portfolio Ltd.
The company's market valuation declined by Rs 20,863.68 crore to Rs 2,11,507.32 crore.
The stock was the top loser among the Sensex and Nifty scrips.
"For Q4 FY15, Sun Pharmaceuticals posted lower-than-expected numbers," said Sarabjit Kour Nangra, VP Research - Pharma of Angel Broking.
Sun Pharmaceutical Industries on Friday posted a consolidated net profit of Rs 888.05 crore for the fourth quarter ended March 31, mainly due to Ranbaxy merger impact and price erosion in some products in the US.
The company had posted a net profit of Rs 1,587.12 crore for the same period of the previous fiscal.
Net profit was adversely impacted by professional charges, harmonisation of policies of erstwhile Ranbaxy with the company, Sun Pharma said in a statement.
"The impact of these items appearing above Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) was approximately 10 per cent of net sales and on items appearing below EBITDA was around 7 per cent of net sales," it said.
The financials for fourth quarter of 2014-15 and full year include the impact of the merger of Ranbaxy into Sun Pharma, and hence are not strictly comparable with the same period last year, the company had said.
"Sun Pharmaceuticals Q4 FY15 reported numbers were well below estimates due to one-off expenses related to Ranbaxy (RBXY) amalgamation," brokerage firm Edelweiss Financial Services said in a report.
In the broader market, the BSE benchmark Sensex ended 20.55 points up at 27,848.99.
