Buy Sun Pharmaceutical Industries, target price Rs 1050: Motilal Oswal

Motilal Oswal has buy call on Sun Pharmaceutical Industries with a target price of Rs 1050. The current market price of Sun Pharmaceutical Industries Ltd. is Rs 892.05.

Time period given by analyst is one year when Sun Pharmaceutical Industries Ltd. price can reach defined target.

Sun Pharmaceutical Industries Ltd., incorporated in the year 1993, is a Large Cap company (having a market cap of Rs 213288.88 Crore) operating in Pharmaceuticals sector.


Sun Pharmaceutical Industries Ltd. key Products/Revenue Segments include Pharmaceuticals and Other Operating Revenue for the year ending 31-Mar-2021.


Financials
For the quarter ended 31-12-2021, the company reported a Consolidated Total Income of Rs 10295.57 Crore, up 4.54 % from last quarter Total Income of Rs 9848.82 Crore and up 12.50 % from last year same quarter Total Income of Rs 9151.73 Crore. Company reported net profit after tax of Rs 2130.80 Crore in latest quarter.


Investment Rationale
The brokerage expects 13% earnings CAGR over FY22-24, led by 17% sales CAGR in the US and 12% sales CAGR in the emerging/RoW markets. While the regulatory issues at Halol would be a near-term concern, it remains positive on SUNP backed by: a) a ramp-up in specialty portfolio sales, b) steady launches supported by increased MR force in the domestic formulation market, c) market share gains/launches in the branded segment of emerging/ROW markets and d) healthy pace of launches.

Promoter/FII Holdings
Promoters held 54.48 per cent stake in the company as of 31-Mar-2022, while FIIs owned 14.44 per cent, DIIs 20.02 per cent.