'Buy' Sun Pharma Shares Maintains Nirmal Bang Despite Minor EPS Cuts Due To Near-Term Headwinds

According to Nirmal Bang’s investor conference update, Sun Pharma’s specialty portfolio—led by Ilumya, Cequa, and Winlevi—now contributes over 20% of revenue and is projected to reach 25–26% by FY28, growing at twice the company’s average pace..NDTV Profit’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 NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Nirmal Bang Report.We expect Sun Pharmaceutical Industries Ltd.'s revenue/Ebitda/PAT to register a CAGR of 8.3%/11%/8.9% over FY25-FY27E, driven by continued strong growth in India and further leveraging of the specialty pipeline. Ebitda margins are expected to remain healthy at 30%. While margin improvement from existing specialty products and favorable mix changes are likely, these will be partially offset by ongoing investments in the expansion of the specialty franchise. ROE and ROCE are expected to remain strong at 15.4% and 15.1%, respectively, by FY27E. We project healthy cumulative free-cash-flow generation of Rs 238 billion over FY26E-FY27E. .We have revised our estimates downward to reflect the increased operating expenses, softer topline growth, and a rising tax burden. However, despite these near-term pressures, we remain structurally positive on Sun Pharma’s long-term outlook. The company is well positioned to benefit from:Sustained outperformance in India branded formulations led by superior execution and volume-led growth; Commercial ramp-up in US specialty driven by LEQSELVI and UNLOXCYT launches; Inorganic opportunities in dermatology, ophthalmology, and onco-derma backed by a strong balance sheet; and Margin resilience, as the company invests in specialty commercialization, while maintaining operating discipline..Sun Pharma’s five-year average P/E stands at 26x. We now value it at 35x FY27E EPS of Rs 58.7, arriving at a target price of Rs 2,054. We maintain our Buy rating on the stock..Click on the attachment to read the full report:.'Buy' M&M Shares Maintains Motilal Oswal On Long-Term Growth Drivers — Check Target Price.DISCLAIMERThis report is authored by an external party. NDTV Profit 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 NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

'Buy' Sun Pharma Shares Maintains Nirmal Bang Despite Minor EPS Cuts Due To Near-Term Headwinds

Despite near-term pressures from rising tax rates, operating costs, Nirmal Bang remains bullish on Sun Pharma’s long-term outlook.

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