Sharekhan's research report on Sun Pharmaceuticals Industries
Sun Pharmaceutical Industries Limited (Sun Pharma) reported results in line with expectations. Gross margins improved for the third consecutive quarter y-o-y in Q3FY2023 due to strong products mix, driven by continued growth in global specialty revenue. R&D spends as a percentage of sales stood at ~6%; management expects it to increase, going forward as it is investing to scale up the specialty business, especially in its core therapy areas.
Outlook
Strong earnings visibility with promising products line up make it a better pick in the pharma space. The stock trades at 24.6x/20.3x its FY2024E/FY2025E EPS, we retain a Buy with a retained price target of Rs. 1,300.
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