Deven Choksey's research report on Sun Pharmaceutical Industries
Revenue stood at INR 129,588 Mn., up 8.1% YoY (-5.2% QoQ), below our estimates (-4.0%), led by weaker growth in the US. EBITDA stood at INR 34,249 Mn., up 10.8% YoY (-18.3% QoQ), below our estimates (-10.2%), driven by contraction of gross margins and higher operating expenses. Adjusted net profit stood at INR 22,203 Mn., down 21.1% YoY (-34.8% QoQ), below our estimates led by weaker operational performance and higher effective tax rate. We have revised our FY26E/FY27E EPS estimates by -13.9%/-15.4%, as we bake in weaker growth momentum driven by Q4FY25 earnings miss, higher effective tax rate and management’s cautious guidance.
Outlook
We value Sun Pharma at 32.0x FY27E EPS, implying a target price of INR 1,811. We maintain our “ACCUMULATE” rating on the stock.
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