Prabhudas Lilladher's research report on Sun Pharmaceutical Industries
Sun Pharma (SUNP) Q3FY25 EBIDTA (+20% YoY) adjusted for milestone was largely in line with our estimates, aided by higher specialty and domestic formulation sales. Overall specialty sales, GMs continue to remain healthy. Over last few years SUNP dependency on US generics has reduced and company’s growth is more functional on specialty, RoW and domestic pharma business that has strong growth visibility. Though FY26 expenses may remain elevated given company are in investment phase to ramp up specialty pipeline; timely launch of Leqselvi along with progress of other pipelines will be key to SUNP’s specialty pipeline beyond FY25. Our FY26/FY27 earnings estimates broadly remains unchanged.
Outlook
We maintain ‘BUY’ rating with revised TP of Rs.2,275 as e roll forward based on 35x FY27E earnings. SUNP remains our top pick in large cap space.
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