Buy Sun Pharmaceutical Industries, target price Rs 965: ICICI Direct

ICICI Direct has buy call on Sun Pharmaceutical Industries with a target price of Rs 965. The current market price of Sun Pharmaceutical Industries is Rs 852.75. 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 200632.39 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 30-09-2021, the company reported a Consolidated Total Income of Rs 9848.82 Crore, down -.23 % from last quarter Total Income of Rs 9871.26 Crore and up 11.81 % from last year same quarter Total Income of Rs 8808.91 Crore. Company reported net profit after tax of Rs 2088.73 Crore in latest quarter.

Investment Rationale
Revenues are likely to grow 9.3% YoY to Rs 9656.9 crore, mainly due to 12% YoY growth in domestic formulations to Rs 3083.1 crore. Taro's sales are expected to grow ~6.8% YoY to Rs 1103.6 crores while US (ex-Taro) is likely to grow 4.2% YoY to | 1799.9 crore. EBITDA margins are expected to decline 73 bps to ~26.5% while EBITDA is expected to grow 6.4% YoY to Rs 2559.1 crore. Adjusted PAT is likely to decline 5.6% YoY to Rs 1749 crore

Promoter/FII Holdings
Promoters held 54.48 per cent stake in the company as of 30-Sep-2021, while FIIs owned 12.07 per cent, DIIs 21.72 per cent.