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Last Updated : Apr 05, 2018 05:56 PM IST | Source: Moneycontrol.com

Hold Sun Pharmaceutical Industries; target of Rs 600: Sharekhan

Sharekhan has recommended hold rating on Sun Pharmaceutical Industries with a target price of Rs 600 in its research report dated March 06, 2018.

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Sharekhan's research report on Sun Pharmaceutical Industries


The key plant of Sun Pharmaceutical Industries (Sun) at Halol was re-inspected by the USFDA in February 2018 and was issued Form 483 with fresh three observations.The fresh observations relate to equipment, employee training and incubation temperature, i.e. they are procedural in nature and do not point towards data integrity issues. Hence, these issues are addressable and can be resolved in three to six months without inspection.


Outlook

We maintain our Hold  recommendation on the stock with unchanged price target (PT) of  Rs. 600  (valuing the stock at 20x its FY2020E earnings). However, we feel the USFDA’s  response on Halol’s remediation process and its final outcome and clarity on the warning letter will weigh on the stock in the near term.

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.

First Published on Mar 6, 2018 04:44 pm
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