Moneycontrol
Get App
Last Updated : May 23, 2020 12:07 PM IST | Source: Moneycontrol.com

Hold Sun Pharmaceutical Industries; target of Rs 436: Prabhudas Lilladher

Prabhudas Lilladher recommended hold rating on Sun Pharmaceutical Industries with a target price of Rs 436 in its research report dated May 21, 2020.

Broker Research @moneycontrolcom
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

Prabhudas Lilladher's research report on Sun Pharmaceutical Industries


Taro Pharma's sales was US$180m in Q4FY20 v/s US$148m in Q3FY20. Gross margin however declined to 58% v/s 64% QoQ reflecting an ongoing price erosion in US derma segment. The decline attributed to an unfavorable product mix, mainly contributed by derma products. The company has huge stock of medicines to avoid any shortage post COVID. While US generic price stabilized at 5-7%, Taro continued to face challenges through large revenue exposure (55-60%) and EBITDA contributions (70-75%) from derma products in US portfolio.



Outlook



Taro Q1FY21E sales are likely to be in the range of US$135-145m with gross margin of 55-60%. Taro's disappointment in the US market would continue be a biggest overhang in SUNP earnings which contribute 40-45% to the overall US revenues. We maintain 'Hold' on SUNP and retain TP of Rs436.




For all recommendations report, click here


Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.



Moneycontrol Ready Reckoner
Now that payment deadlines have been relaxed due to COVID-19, the Moneycontrol Ready Reckoner will help keep your date with insurance premiums, tax-saving investments and EMIs, among others.


Facebook-BCG report suggests these measures for businesses to unlock the changing consumer behaviour in the current pandemic. Read More!

First Published on May 23, 2020 12:07 pm
Sections
Follow us on