While near-term headwinds such as elevated marketing expenses, rising tax rates, and persistent pricing pressure in the U.S. generics business have led the brokerage to tweak its estimates, thus remains constructive on Sun Pharma's long-term fundamentals.
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Nirmal Bang Report
We have marginally tweaked our estimates due to increased operating expenses, softer topline growth, and a rising tax burden. However, despite these near-term challenges, we remain structurally positive on Sun Pharmaceutical Industries Ltd.'s long-term business outlook.
We are building in Revlimid sales of $176/123 million over FY26/FY27E. The stock's five-year average P/E stands at 25x; we now value it at 35x FY27E earnings per share of Rs 57.8 and arrive at a target price of Rs 2,024.
We maintain our Buy rating underpinned by Sun Pharma's strong positioning as a unique play on both the India branded market and the global specialty pharma opportunity.
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