Sun Pharma is one of the smart gainers on the bourses currently. The stock is up over 4.5% at Rs.888 and this is very close to its intra day high of Rs.884.90 rather than the low of Rs.844.

The mood on the counter is upbeat after it posted its Q1FY16 numbers yesterday. Though the consolidated net profit of the company has come in 46% (QoQ) down at Rs.479 crore, this drop in profit has been mainly on account of the one-time exceptional loss of Rs.685 crore which is on account of impairment charges on account of the merger. The EBITDA has more than doubled from Rs.792 crore to Rs.1860 crore  and margins have come in at 27.5% v/s 13%. This was a clear indication that but for the one-time loss, the company would have notched up a very credible performance. And that is what the market has decided to look and ignore the impairment loss.