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    HomeNewsBusinessStocksBuy Sun Pharma; target of Rs 850: HDFC Securities

    Buy Sun Pharma; target of Rs 850: HDFC Securities

    HDFC Securities is bullish on Sun Pharma has recommended buy rating on the stock with a target price of Rs 850 in its research report dated February 15, 2017.

    February 22, 2017 / 16:37 IST

    HDFC Securities' research report onSun Pharma

    Sun Pharma (SUNP) posted underwhelming numbers in 3QFY17. Revenues grew 12% YoY, EBITDA margin was at 31% (down 732bps QoQ) and PAT came in at Rs 14.7bn. Substantially lower gross margins on account of Olmesartan AG sales in the US and integration of Novartis’s business in Japan dragged the overall EBITDA margin down.

    Outlook

    Ranbaxy synergies of US$ 300mn and sales from the robust specialty portfolio (MK-3222, Odomzo and Seceira) are likely to be the key growth drivers going forward. Maintain BUY with a revised TP of Rs 850 (22x on Dec-18E).

    For all recommendations, click hereDisclaimer: 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.

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    first published: Feb 22, 2017 04:37 pm

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