Buy Sun Pharma ; target of Rs 525: Motilal Oswal

Motilal Oswal is bullish on Sun Pharma has recommended buy rating on the stock with a target price of Rs 525 in its research report dated May 27, 2020.

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May 28, 2020 / 04:29 PM IST

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Motilal Oswal 's research report on Sun Pharma

Post the reduction in prescriptions in the Specialty portfolio at the start of lockdown, a gradual improvement has been witnessed in the same with the easing of the lockdown. The stockpiling of medicines related to chronic therapies has been offset, to some extent, by a lower patient-doctor connect for acute therapies in the key markets of SUNP. The addition of MRs would further support growth, particularly in Domestic Formulations (DF).

Outlook

We lower our FY21/FY22E EPS estimates by 6.8%/2% to factor the COVID-19-led slowdown and revise our price target to INR525 (from INR535 earlier) on a 22x 12M forward earnings basis. We remain positive on SUNP on account of a gradually improving outlook for the Specialty portfolio, a robust ANDA pipeline, and increasing market share in DF. Maintain Buy.

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