Sun Pharma - Leveraging Global Specialty Pipeline To Aid Growth: Nirmal Bang
In Q1, global specialty saw a sequential decline due to Levulan seasonality effect, which has normalised in Q2 FY24.
BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Nirmal Bang Report
Key Points
We hosted the management of Sun Pharmaceutical Industries Ltd., to gain insights into the current business outlook. Scaling up of the global specialty portfolio would remain the key focus area, with Ilumya, Winlevi and Cequa being the main growth drivers.
In India, the target would be to grow in line or slightly faster than the market on the back of addition of MRs and new launches. Emerging market and redistribution of wealth growth would be aided by leveraging of the global specialty portfolio.
We remain positive on Sun Pharma due to the following catalysts:
Ramp-up of branded/specialty business in the U.S. (recently acquired Deuroxolitinib would further strengthen specialty pipeline)
Continued growth in India business
Potential inorganic opportunity given the strong balance sheet, especially in dermatology, ophthalmology and oncology specialty.
Maintenance of healthy Ebitda margin at ~27% despite higher research and development spends.
We maintain 'Buy' with a revised target price of Rs 1,315, valuing it at 28 times June-25E earning per share of Rs 47.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.