Buy Sun Pharma; target of Rs 740: Motilal Oswal

Trade

• Watchlist
• Portfolio
• Message
• Set Alert

 

 

Choose Stock Exchange: BSE LIVE NSE LIVE

26 Aug, 2025 12:21

Volume

Todays L/H

More

×

Motilal Oswal's research report on Sun Pharma

SUNP delivered higher-than-expected profitability on: a) better traction in Specialty portfolio/US Generics, and b) extended benefit of lower opex. Marketing efforts for the Specialty portfolio remain constrained due to COVID-19, offering scope to gain further prescription share going forward. n We raise our FY21E/FY22E/FY23E earnings estimate by 9%/7%/7%, factoring in: a) gains from marketing in the Specialty portfolio, b) market share gain/utilizing shortage opportunities in US Generics, and c) controlled operational cost due to uncertainties related to COVID-19. n We continue to value SUNP at 25x 12 months forward earnings to arrive at our target price of INR740. We remain positive due to: a) superior execution in the Specialty portfolio, b) strong ANDA pipeline, and c) outperformance in the Branded Generics segment. Maintain Buy.

Outlook

We believe SUNP’s RoE is at a trough and would improve with 22% earnings CAGR, led by 9%/7%/10% sales CAGR in DF/US/RoW and 340bp margin expansion over FY20-23E. Maintain Buy

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.

Read More