Prabhudas Lilladher is positive on Sun Pharmaceutical Industries and has given a buy rating with a target price of Rs 1885 in their research report dated August 1, 2024.
Key Highlights:
- Earnings Estimates: Their earnings estimates for FY25 and FY26 have increased by about 2%.
- Q1FY25 Performance: Sun Pharma’s Q1FY25 EBITDA was 6% higher than expected, helped by strong domestic sales and lower R&D costs.
- Growth Drivers: The company’s growth now relies more on specialty, Rest of World (RoW), and domestic business rather than US generics, showing strong growth potential.
- Specialty Pipeline: Although expenses might remain high in FY25 due to investments in their specialty pipeline, the launch of deuruxolitinib and other pipeline progress offer promising growth beyond FY25.
Outlook: They maintain a ‘BUY’ rating with a target price of Rs 1885, based on 35 times FY26 earnings. Sun Pharma is their top pick among large-cap stocks.
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