Expect Sun Pharma's earnings growth to be above 20% in two years: Prashasta Seth

In a chat with ET Now, Prashasta Seth, Senior Fund Manager, IIFL Wealth, shares his views on Sun Pharma. Excerpts:

ET Now: Sun Pharma's business minus Taro is not growing but it clearly seems to be making all the difference.

Prashastha Seth: Yes. The kind of margins that you are getting in Taro are simply incredible. Every time you think those margins will come off, but it continues to surprise.

You would continue to see earnings growth of 20% plus over the course of the next couple of years. Till the point more clarity emerges on the economy and election, people will continue to hold this stock.

Hence, the valuations are not cheap. Valuations continue to be expensive but given the fact that earnings momentum has continued, the company has been able to deliver consistently 20% plus growth in terms of earnings. Obviously a large part of it coming through Taro; it looks like the management will continue to be able to deliver more than 20% plus earnings. Hence, the stock will continue to do well.