Buy Sun Pharma, target price Rs 2,115: JM Financial

JM Financial has a buy call on Sun Pharmaceutical Industries with a target price of Rs 2115. The current market price of Sun Pharmaceutical Industries is Rs 1655.2. The time period given by the analyst is a year when Sun Pharmaceutical Industries price can reach defined target. Sun Pharma, incorporated in 1993, is a Large Cap company with a market cap of Rs 398565.53 crore, operating in the Pharmaceuticals sector.

Sun Pharma's key products/revenue segments include Pharmaceuticals and Other Operating Revenue for the year ending 31-Mar-2024.

Financials

For the quarter ended 31-12-2024, the company has reported a Consolidated Total Income of Rs 14141.08 crore, up 3.63% from last quarter Total Income of Rs 13645.39 crore and up 11.96% from last year same quarter Total Income of Rs 12630.90 crore. The company has reported net profit after tax of Rs 2917.54 crore in the latest quarter.

The company's top management includes Mr.Dilip S Shanghvi, Mr.Aalok D Shanghvi, Mr.Sudhir V Valia, Dr.Pawan Goenka, Mr.Rama Bijapurkar, Mr.Gautam Doshi, Mr.Sanjay Asher, Mr.Rolf Hoffmann. Company has S R B C & Co. LLP as its auditors. As on 31-12-2024, the company has a total of 240 crore shares outstanding.

Investment Rationale
A strong specialty pipeline which includes Ilumya ? PsA indication, newer assets like Fibromun and Otenaproxesul provide a long runway for growth for Sun Pharma. JM Financial expects more such M&A deals as cash pile rises. Sun Pharma's increasing specialty contribution and its outperforming India business are likely to keep valuation multiples elevated in the brokerage view. They have a BUY call on the stock with 12-month target price of Rs 2115.

Promoter/FII Holdings
Promoters held 54.48 per cent stake in the company as of , while FIIs owned 18.04 per cent, DIIs 18.35 per cent.