Geojit's research report on Sun Pharmaceutical Industries
Q4FY21 revenue increased by 4.4% YoY, with growth led by India Formulations (+12.9% YoY) and ROW Formulations (+6.3%). EBITDA margin expanded 580bps to 24.4% and EBITDA rose 36.8% YoY to Rs. 2,059cr, driven by favorable product mix and efficiencies, along with low advertising and discretionary expenses. Adj. PAT was up 96.6% YoY. R&D remained stable at Rs. 557cr (~6.6% of sales). Outlook remains positive with new launches (COVID drugs like Remdisivir, Itolizumab and Favipiravir) and Licensing agreements signed for Molnupiravir from Merck and Baricitinib from Eli Lilly. Biosimilars, API and Emerging markets are the long-term growth catalysts for the company.
Outlook
We reiterate our BUY rating with revised TP of Rs. 783 based on 26x FY23E adj. EPS.
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