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).
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.
For all recommendations report, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.