JM Financial retains Buy on Sun Pharma, lowers target price to Rs 2,025

JM Financial has retained a Buy call on Sun Pharmaceutical Industries with a revised target price of Rs 2025 (earlier Rs 2,115). The current market price of Sun Pharmaceutical Industries is Rs 1683.25. The time period given by the analyst is a year when Sun Pharma price can reach the defined target. .

Sun Pharmaceuticals Industries, incorporated in 1993, is a Large Cap company with a market cap of Rs 403952.04 Crore) operating in the Pharmaceuticals sector.

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


Financials
For the quarter ended 31-03-2025, the company has reported a Consolidated Total Income of Rs 13571.71 crore, down -4.03 % from last quarter Total Income of Rs 14141.08 crore and up 7.81% from last year same quarter Total Income of Rs 12,588.84 crore. The company has reported net profit after tax of Rs 2160.64 crore in 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 31-03-2025, the company has a total of 240 crore shares outstanding.

Investment Rationale
Sun Pharma delivered a moderate Q4FY25, with results broadly in line with expectations. The company reported a top-line growth of 8% YoY in Q4FY25, with EBITDA and adjusted PAT growth of 22% and -11% YoY, respectively. Revenue, EBITDA, and adjusted PAT were down 1%, up 4%, and down 13% vs. JMFe. India formulations grew 13.6% YoY, maintaining its number-one rank with an 8.3% market share. Global specialty sales rose 8.6% YoY, driven by a 17% increase in Ilumya sales, while emerging markets (EM) grew 11.5% YoY in constant currency (CC), led by Romania, Russia, and Brazil. However, US formulations declined 2.5% YoY in CC due to weakness in the generic segment, despite growth in specialty brands like Ilumya and Cequa.

The company launched 10 products each in India and the US in Q4FY25, strengthening its portfolio. Future growth is anchored in the Phase 3 data release of Ilumya in 2H CY25, the delayed launch of Leqselvi in 2QFY26, and the acquisition of Checkpoint Therapeutics, which enhances its oncology portfolio. With a focus on compliance for US plants, new product trials, and strategic M&A, the company is poised for >10% growth over FY25?28 on a large base. JM Financial maintains a positive outlook on the stock and reaffirms its BUY recommendation with a target price of Rs 2,025 (earlier Rs 2,115.)

Promoter/FII Holdings
Promoters held 54.48 per cent stake in the company as of 31-Mar-2025, while FIIs owned 17.95 per cent, DIIs 18.48 per cent.