Sharekhan retains Buy recommendation on Sun Pharma with a revised price target of Rs 660. Sun Pharma..


Sharekhan retains Buy recommendation on Sun Pharma with a revised price target of Rs 660. Sun Pharma Specialty business is witnessing improved traction. Pick up in the US specialty business coupled with likely traction from a sturdy new product launch pipeline, would fuel the growth of the US business. Moreover, geographic expansion/increasing penetration for specialty portfolios, in markets other than the US, would also aid the growth of specialty portfolios. Healthy growth in chronic therapies along with new launches gaining traction and a possible improvement in acute therapies is likely to fuel growth in the domestic formulations business. Moreover, a favourable mix is expected to lead to margins expansion, which in turn would result in a strong 22% PAT CAGR over FY2020-FY2023. At CMP, the stock trades at an attractive valuation of 21.3x/19x its FY2022E/FY2023E EPS. Healthy outlook for specialty portfolio, improved growth prospects, healthy balance sheet, and improving return ratios would support P/E multiple expansion. Specialty business is on a path to improvement and is expected to gain traction. Two of its existing specialty products – Ilumya and Cequa are witnessing a rise in the prescription numbers and have almost crossed the pre-COVID levels. Also the company had taken a price hike in the specialty portfolio in recent past, which bodes well

about 12 hrs 51 mins ago

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