Hold Sun Pharmaceutical Industries: Prakash Agarwal

Prakash Agarwal, Equity Analyst at CIMB told CNBC-TV18, "We have a hold rating on Sun Pharmaceutical Industries; our target price is Rs 830. If you look at the proposed acquisition we would see the revenue growth declining, we would see EBITDA margins diluting for at least couple of years. Also we value Sun largely due to the focus on the specialty segment. With Ranbaxy getting added we believe the core focus will dilute a bit. So we are positive on Dr Reddy’s Lab, Lupin and Cipla in the large caps, versus Sun Pharma and Ranbaxy Laboratories."

At 10:52 hrs Sun Pharmaceutical Industries was quoting at Rs 837.90, down Rs 1.35, or 0.16 percent.

The share touched its 52-week high Rs 877.40 and 52-week low Rs 552.50 on 03 September, 2014 and 14 March, 2014, respectively.