Buy Sun Pharma; target of Rs 1,870: Motilal Oswal

Motilal Oswal is bullish on Sun Pharma has recommended buy rating on the stock with a target price of Rs 1,870 in its research report dated April 23, 2024.

Broker Research

April 24, 2024 / 11:33 IST

Buy

26 Aug, 2025 12:21

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Motilal Oswal's research report on Sun Pharma

In this note, we explored the specialty pipeline of SUNP, examining products under development, the commercialized portfolio, and the competitive dynamics within each segment. The overall R&D expenditure is expected to increase by 33% YoY in FY24 and maintain an 18% CAGR over FY24-26 to support clinical development of certain assets. Despite some delays in the clinical trial processes of Ilumya (additional indication), MM-II, and GL0034, the innovative/discovery pipeline continues to be the most promising within the India listed space.

Outlook

We expect 19% earnings CAGR over FY24-26, led by 20%/12%/12% sales CAGR in Specialty/EM-ROW/DF segment. We expect margin expansion by 210bps over FY24-26, on the back of improved operating leverage. We value SUNP at 30x 12M forward earnings to arrive at a price target of INR 1,870. We reiterate our BUY rating on the stock.

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