Prabhudas Lilladher's research report on Sun Pharmaceutical Industries
Sun Pharma (SUNP) Q2FY26 EBIDTA (+7% YoY) in line with our estimates aided by higher specialty and RoW sales. Over last few years SUNP dependency on US generics has reduced and company’s growth is more functional on specialty, RoW and domestic pharma that has strong growth visibility. Though FY26 expenses (an additional $100mn spend) is likely to remain elevated given company are in investment phase to ramp up specialty pipeline; successful launch of Unloxcyt, scale up of Leqselvi along with progress of other pipelines will be key.
Outlook
Our FY27/FY28E EPS remains unchanged. We maintain ‘BUY’ rating with TP of Rs.1,875 based on 30x Sept 2027E EPS. SUNP remains our top pick in large cap space.
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