Buy Sun Pharma; target of Rs 1015: Angel Broking

Trade

• Watchlist
• Portfolio
• Message
• Set Alert

 

 

Choose Stock Exchange: BSE LIVE NSE LIVE

26 Aug, 2025 12:21

Volume

Todays L/H

More

×

Angel Broking's report on Sun Pharmaceutical Industries

"For 4QFY2015, Sun Pharmaceuticals Industries (Sun Pharma) posted numbers lower than expected. The company posted sales of Rs 6,145cr (V/s Rs 7,000cr expected and V/s Rs 4,044cr in 4QFY2014), a yoy growth of 52.0%, driven by Ranbaxy Labs’ merger. The Indian, US, Emerging, and ROW markets posted a yoy growth of 65.8%, 22.6%, 264.9% and 124.6%, respectively. On the operating front, the EBITDA margin came in at 14.3% V/s 35.1% expected and V/s 44.2% in 4QFY2014. The PAT came in at Rs 888cr V/s Rs 1,751cr expected and V/s Rs 1,587cr in 4QFY2014, a yoy de-growth of 44.0%. This was aided by the other income of Rs 395.8cr for the quarter V/s Rs 193.8cr in 4QFY2014. Also, during the period, there was a tax credit of ~Rs 600cr. Thus, adjusted for merger related expenses, the Adj. PAT came in at Rs 1,622cr, posting a yoy growth of 2.2%. On back of the dip in the stock price in the past few sessions, the stock has become attractive; hence, we recommend a Buy on the stock with a target price of Rs 1015."

"Sun Pharma is one of the largest and fastest growing Indian pharmaceutical companies. We expect its net sales to post a 34.4% CAGR (including Ranbaxy Laboratories) to Rs 49,294cr and EPS to post an 25.8% CAGR to Rs 36.2 over FY2015–17E. We recommend a buy on the stock, given the valuations", says Angel Broking research report.

For all recommendations, 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.

Read More