Sun Pharmaceutical Industries
Stock Snapshot
Price Performance
Vista Outlook
View Technicals Analysis →Basis of our Recommendation
Sun Pharmaceutical Industries is navigating a pivotal transition, with management emphasizing a strategic shift towards specialty and innovative medicines to counteract pressures in the generic segment. The recent acquisition of Organon is expected to enhance revenue growth, particularly in the Women's Health and Biosimilars markets, positioning Sun Pharma as a significant player in these high-potential areas. Despite facing challenges such as rising input costs and increased competition in the U.S. generics market, the company's focus on operational excellence and a robust innovation pipeline supports Vista's forecast of stable margins and moderate revenue growth. The favorable currency environment further bolsters export revenues, aligning with Vista's expectations of a 12.9% upside and a target price of approximately ₹2,179. The overall sentiment remains cautiously optimistic, with key opportunities in expanding specialty products and leveraging the Organon acquisition, while watchpoints include execution risks and potential integration challenges over the next 12-24 months
Why We Like This Stock
- The acquisition of Organon is expected to significantly enhance revenue growth and market positioning in Women's Health and Biosimilars
- Management's focus on specialty products and operational excellence supports stable margins despite pressures in the generics segment
- Favorable currency depreciation is likely to boost revenues for export-oriented operations
Things To Watch Out For
- Rising input costs may pressure margins across the sector, impacting profitability
- Increased competition in the U.S. generics market poses risks to market share and pricing power
- Execution risks associated with the Organon acquisition could hinder anticipated synergies and growth
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 48,497 | 52,578 | 58,462 | 59,908 | 67,221 |
| Profit Before Tax (Cr.) | 11,592 | 14,446 | 16,426 | 17,718 | 20,248 |
| PBT Margin | 23.9% | 27.5% | 2809.7% | 29.6% | 30.1% |
| Net Profit (Cr.) | 9,474 | 11,870 | 12,124 | 13,015 | 14,837 |
| Earnings Per Share | 39.4 | 49.3 | 50.4 | 54.1 | 61.8 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| BOB Capital Markets | ▲ Buy | 2,124 | 24-May-2026 |
| Bernstein | ▲ Buy | 2,235 | 17-Jun-2026 |
| Bofa | ▼ Underperform | 1,915 | 03-Aug-2026 |
| CLSA | ▲ Buy | 2,020 | 25-May-2026 |
| Choice Equity | ▲ Buy | 2,300 | 25-May-2026 |
| Citigroup | ▲ Buy | 2,280 | 03-Aug-2026 |
| Deven Choksey | ► Add | 2,048 | 27-May-2026 |
| Elara Capital | ► Accumulate | 2,085 | 25-May-2026 |
| Emkay Global | ► Add | 2,100 | 03-Aug-2026 |
| HDFC Securities | ▲ Buy | 2,120 | 22-May-2026 |
| HSBC | ▲ Outperform | 2,150 | 03-Aug-2026 |
| ICICI Securities | ► Hold | 2,100 | 24-May-2026 |
| JMFinancials | ► Hold | 2,011 | 26-May-2026 |
| Kotak Securities | ▲ Buy | 2,200 | 01-Jun-2026 |
| Macguire | ▲ Buy | 2,150 | 03-Aug-2026 |
| Mirae Asset | ▲ Buy | 1,885 | 15-May-2026 |
| Moneycontrol | ► Equalweight | nan | 25-May-2026 |
| Motilal Oswal | ▲ Buy | 2,310 | 01-Aug-2026 |
| Nomura | ▲ Buy | 1,920 | 26-May-2026 |
| Nuvama | ▲ Buy | 2,115 | 26-May-2026 |
| Prabhudas Liladhar | ▲ Buy | 2,070 | 25-May-2026 |
Company Overview
Show Company Profile
Sun Pharmaceutical Industries Limited, a generic pharmaceutical company, develops, manufactures, and markets branded and generic formulations, and active pharmaceutical ingredients (APIs) in India, the United States, and internationally. The company offers formulations in various therapeutic areas, including neuropsychiatry, cardiology, diabetes, gastroenterology, pain/analgesics, gynecology, ophthalmology, urology, dermatology, respiratory, anti-infectives, oncology, psychiatry, neurology, orthopaedic, nephrology, dental, and nutritionals. It also provides generic medications, such as tablets, capsules, injectables, inhalers, ointments, creams, and liquids; specialty medications; antiretrovirals medications; and over-the-counter products, such as vitamins, analgesics, digestives, and lifestyle. In addition, the company offers generics and APIs for anti-cancers, peptides, steroids, sex hormones, immunosuppressant drugs, and controlled substances. Sun Pharmaceutical Industries Limited was founded in 1983 and is headquartered in Mumbai, India.