Sharekhan's research report on Sun Pharmaceuticals Industries
The company plans to launch specialty products in more geographies as well, which can aid growth. Sun also has four additional specialty products in various stages of clinical trials, which boosts growth prospects. As branded formulations and emerging markets fetch ~50% of Sun’s revenues, there is lesser dependency on the US generics, whose pricing would continue to deteriorate. Sun Pharma has repaid debt worth $1.38 billion in the past three years, leading to reduced debt-to-equity ratio of 0.07x as of Q2FY23 versus 0.30x it was in FY18.
Outlook
We reiterate a Buy rating and price target on Sun Pharma as we believe improved earnings visibility make it one of our top-picks in the pharma sector. Traction in the US, India and specialty segment revenues, product launches and strengthening balance sheet bode well for earnings.
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.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
