Buy Sun Pharmaceutical Industries; target of Rs 1875: Prabhudas Lilladher
Prabhudas Lilladher's research report on Sun Pharmaceutical Industries
Sun Pharma (SUNP) Q1FY26 EBIDTA (+11% YoY) was 7% above our estimates aided by higher specialty sales and lower opex. Over last few years SUNP dependency on US generics has reduced and company’s growth is more functional on specialty, RoW and domestic pharma that has strong growth visibility. Though FY26 expenses (an additional $100mn spend) is likely to remain elevated given company are in investment phase to ramp up specialty pipeline; successful launch of Leqselvi and Unloxcyt along with progress of other pipelines will be key. Our FY26/FY27E EPS stands reduced by 6-7% as we factor in higher tax.
Outlook
We maintain ‘BUY’ rating with revised TP of Rs.1,875 based on 32x FY27E EPS. SUNP remains our top pick in large cap space.
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Sun Pharmaceutical Industries - 01082025 - prabhu