Sun Pharma: Traction in select speciality comes as a surprise
Though valuation is still not inexpensive, we see improved trade sentiment for Sun Pharma post results. Sustained traction in speciality will be a key re-rating driver
November 04, 2020 / 11:56 AM IST
Revlimid is a blockbuster blood cancer drug with sales of $12.1 billion for BMS in 2020.
PRO Only Highlights
Quarterly performance largely backed by improved realisations
Medium-term triggers China plus and protectionist measures for tyre industry
Valuations not inexpensive; but improved medium-term outlook
- Q2 sales helped by international markets and API performance
- Improved margins mainly due to product mix; may not sustain in the medium term
- Few specialty products to break even next fiscal
- Sustained traction in speciality to be a re-rating driver
India’s largest pharma company Sun Pharma (CMP: Rs 485 Market cap: Rs 116,392 crore) posted a better-than-expected set of numbers, driven by speciality products and improved performance in international markets. Other than that, balance sheet improvement and traction in the plaque psoriasis market...