Motilal Oswal's research report on Sun Pharma
We recently met with management of Sun Pharma (SUNP) to understand the company’s business outlook. Management said that SUNP aims to sustain its outperformance in the domestic formulation (DF) segment through increased doctor engagement, new launches, addition of field force and strengthening the brand recall of its existing products. Management highlighted its continued focus on building the specialty franchise in developed markets through late-stage acquisitions (derma, ophtha, oncoderma), ramp-up of Leqselvi, Unloxcyt and Winlevi with higher field force/marketing spend (~USD100m in FY26), diversification of Ilumya supply, and improved doctor connect.
Outlook
Overall, we expect 14% earnings CAGR over FY25-27E, led by 17% sales CAGR in the specialty segment and 12% in DF/EM markets, and 160bp margin expansion. We value SUNP at 32x 12M forward earnings to arrive at a TP of INR1,960. Reiterate BUY.
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