Buy Sun Pharmaceuticals Industries; target of Rs 1130: Sharekhan

The research firm ICICI Securities believes earnings of apparel brands and retail companies under their coverage may surprise positively from Q3FY22E as the likely demand recovery may result in better than expected margin performance. Some of the costs savings achieved during pandemic may sustain and coupled with high operating leverage may lead to higher than pre-covid margins from Q3FY22E.  Stocks like Trent, V-Mart and Aditya Birla Fashion and Retail are the preferred picks backed by their strong and consistent track record of execution.

Sharekhan's research report on Sun Pharmaceuticals Industries

Sun Pharmaceutical Industries Limited (Sun Pharma) reported strong growth on the sequential basis while on a y-o-y basis, growth moderated due to a high base on account of covid in Q1FY22. The results are ahead of estimate. Robust growth outlook across key geographies of India and US aided by expanding product portfolio, increasing reach and penetration, growth in base business coupled with traction in global specialty business would be key growth drivers for Sun Pharma. Sun Pharma has a strong product pipeline for the US with 89 ANDAs and 13 NDAs awaiting USFDA approval. Strong product pipeline could enable Sun to offset competitive pressures.

Improved growth prospects across businesses and healthy balance sheet position would be key positives. We retain a Buy with an upwardly revised PT of Rs 1130.

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Sun Pharmaceuticals Industries -010822 - khan