Sun Pharma is India’s top drug maker and world’s fifth largest specialty generic pharmaceutical company by revenue with 41 manufacturing facilities spread across 6 continents.
Outlook and Valuation: Clearance of Halol facility, ramp up of generics and specialty business driven by increased investments augurs well for the company as it improves the launch visibility. Sun Pharma has been investing heavily to build a pipeline of specialty products for the US market. Moreover, expectation of further market share gains in Odomzo and BromSite (launched in FY17), recovery in India business, improved launch visibility and key specialty & generic launches will support growth. Hence, we recommend ‘BUY’ rating with a target price of Rs 623 based on 24x FY20E EPS.
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