Sun Pharma Q4 Results Review - Steady India Growth; Specialty Sales Drives U.S. Growth: Dolat Capital

"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..Dolat Capital Report.Sun Pharmaceutical Industries Ltd.’s Q4 FY24 operating performance was below our estimate on account of higher research and development and other expenses. Excluding exceptional expenses, adjusted profit after tax came above our estimate due to higher other income and lower tax rate. Sun Pharma guided high single digit revenue growth in FY25 and R&D expense in the range of 8-10% of sales, as FY25 will be an investment year. We downgrade our FY25E/FY26E earnings per share estimates by 3.1%/3.5% assuming higher R&D expenses. We expect revenue/profit after tax compound annual growth rate of 11%/13% over FY24-26E and ascribe 30 times FY26E P/E (earlier 28 times) with revised target price of Rs 1,615 (earlier Rs 1,563). We increase our multiple on back of consistent traction in Specialty business. However, given recent rally in the stock price, we see limited upside from current levels despite increasing multiple. Consequently, we revise our rating to ‘Reduce’ from Accumulate. We recommend investors to Accumulate on dips. Key upside will be higher-than-expected traction in specialty sales and key downside will be further escalation of regulatory issues on plants..Click on the attachment to read the full report:.Sun Pharma Q4 Results Review - The U.S., India Businesses Drive Earnings Growth: Motilal Oswal.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."

Sun Pharma Q4 Results Review - Steady India Growth; Specialty Sales Drives U.S. Growth: Dolat Capital

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Sun Pharma Q4 Results Review - Steady India Growth; Specialty Sales Drives U.S. Growth: Dolat Capital

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