Broker’s Call: Sun Pharma (Buy)
Geojit Investments
Sun Pharmaceutical, India's largest pharmaceutical company, has reported a 10.5% year-over-year increase in consolidated revenue from operations to ₹15,300 crore in Q1FY27. This growth is attributed to strong performance in the India formulations business and the Innovative Medicines portfolio. The company anticipates high single-digit growth in the coming year, driven by specialty and domestic segments.
The Global Specialty business, which contributes 22% of sales, has seen broad-based growth, particularly due to the successful launch of products like ILUMYA, ODOMZO, Leqselvi, and Unloxcyt. The recent approval of semaglutide in multiple markets and the steady performance of flagship brands such as Ilumya further bolster the company's growth prospects.
Sun Pharma's acquisition of Organon is anticipated to expand its therapeutic presence in Women's Health and Biosimilars, while enhancing its global reach. The company maintains its leadership position in the Indian pharmaceutical market, with an 8.4% market share driven by volume growth and new product launches. As a result, the analyst retains a Buy rating on Sun Pharma shares, with a revised target price of ₹2,070, based on 30x FY28E adjusted earnings per share.
Written by urgent.news from Hindu BusinessLine's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
