Geojit recommended hold rating on Sun Pharmaceutical Industries with a target price of Rs 597 in its research report dated June 19, 2018.
Geojit's research report on Sun Pharmaceutical Industries
Sun Pharma is India’s top drug maker and world's fifth largest specialty generic pharmaceutical company by revenue with 41 manufacturing facilities spread across 6 continents. Revenue fell 2% YoY in Q4FY18 due to lower US and less than expected India sales. US sales declined 7% YoY mainly on account of sharp fall in Taro sales (down 11%YoY) due to continued pricing pressure in the US and lack of significant approvals. EBITDA margin expanded by 340 bps YoY to 25.1% led by improved gross margin. We expect revenue/Adj.PAT to grow at 14%/42% CAGR over FY18-20E driven by expected pick-up in US sales and key speciality & generic launches.Outlook
Given improved visibility for key drug launches in the US post Halol plantresolution, increased spend on specialty business and expected recovery in India business, we change our rating to ‘HOLD’ from ‘SELL’. Our revised target price stands at Rs597 based on 23x FY20E PE.
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.Get access to India's fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code "GETPRO". Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.