Expect 20% return in Sun Pharma: IIFL

Expect 20% return in Sun Pharma, says Bino Pathiparampil, IIFL Institutional Equities.

Pathiparampil told CNBC-TV18, "The couple of news that came out over the last couple of days has been pretty  positive for Sun Pharma. The approval of Lipodox, which we originally thought was a one-off opportunity last year, now  extends into FY14 as well. I estimate that the company could make upto USD 100 million in the United States (US) just  from this one product in FY14, which could be substantially material."
He further added, "Taro Pharma, Sun Pharma’s US subsidiary reported in US, they again reported a great set of  numbers, with earnings before interest, tax, depreciation, and amortisation (EBITDA) margin further expanding from 54  percent to 58.5 percent. There is a top-line growth as well. This has been materially above what people have been  expecting. Infact some of us were expecting margins to come off given some competition reentering the market in  case of some products. So overall, the numbers look good. What earlier looked like a flat year for Sun Pharma is now  looking like a growth year. FY14, the company should deliver a good growth.
"I would wait for the company to report, to look at the numbers in detail, but given the kind of growth that company is  delivering, I would expect a 20 percent return on an annualised-basis from this stock."