According to analysts, promoters and company managements are likely to be less focused on tax implications of buybacks or dividends and focus more on staving off market cap erosion.
In year-to-date, the share price of Sun Pharma
has seen erosion of Rs 17.7 per cent. The stock on Thursday touched its 52-week low of Rs 346.65. The share price ended eight per cent lower at Rs 357.
As of December 31, 2019, the promoters held 54.56 per cent stake in the company.
According to analysts the ongoing price-fixing case in US remains an overhang on Sun Pharma's share price. However, ICICI Securities in a note said that the current valuations factor in the negative outcomes of the price-fixing case and concerns over slow ramp-up of specialty portfolio.