Sun Pharmaceutical Industries Ltd. share price target

Sun Pharma has crossed a critical inflection point. For the first time, its US Innovative Medicines franchise — led by Ilumya, Unloxcin, Leqselvi, and Cequa — is the larger US business, eclipsing generics.

Sun Pharma (SUNP) Q4FY26 EBIDTA growth of 6% YoY was lower than our estimates led by higher opex. Key markets like India and specialty continue to report strong growth. Over last few years SUNP dependency on US generics has reduced and company's growth is more functional on specialty, RoW and domestic pharma that has strong growth visibility. Its recent acquisition of Organon in all cash deal provides an entry into biosimilars and diversify its branded generics portfolio. The deal is EPS accretive from Year 1 and will see significant EPS accretion. Company has managed to enjoy higher multiple compared to peers given its exposure to high growth branded...

Sales/EBITDA/PAT came 1.4%/-13.5%/-4.3% below estimates. Gross Margin was 103 bps higher; EBITDA Margin 416 bps below estimates

Sun acquired Organon at a ~24% premium at USD 14/share, valuing the company at an EV of USD 11.75 bn and 1.9x EV/Sales on CY25

company with 43 manufacturing sites at its disposal addressing segments like specialty products, branded generics, complex generics, pure generics and APIs. Sun is ranked No. 1 in domestic formulations. It enjoys a leadership...

Sun Pharma’s (SUNP) proposed acquisition of New Jersey-based Organon will provide several advantages for SUNP in terms of portfolio expansion, healthcare professional (HCP) connect, and geographical reach.

Sun’s Organon acquisition marks a clear departure from its recent acquisition template – multiple sub-USD500mn assets over the years vs adding a company of its own scale as part of a single acquisition.

Sun Pharma (Sun) has entered into a definitive agreement to acquire US-based Organon for USD 11.75bn, of which USD 3.99bn would be paid in cash to purchase total outstanding equity at USD 14/share.

Sun Pharmaceutical Industries (SUNP)'s acquisition of Organon at an EV of $11.75bn in all cash deal makes its largest acquisition so far. This will enable SUNP an entry into biosimilars and scale up its women's health presence, further diversifying its branded generics portfolio. The deal also strengthens its access to new markets like China. Though SUNP has acquired company similar to its size at 30% of its value, the growth profile of Organon is muted/flattish over last 2-3 years as compared to 13-15% growth profile for SUNP. On call mgmt. has highlighted for better growth profile of acquired profile through more in licensing deals, new line extensions, cost synergies and tapping...

Sun Pharmaceutical Industries Limited has signed a definitive agreement to acquire Organon & Co., a NYSE-listed global pharmaceutical company, in an all-cash transaction valuing Organon at an enterprise value of USD 11.75 billion.

Sun Pharma demonstrated consistent execution in key business segments, driven by robust demand for chronic therapies in India formulations, improved traction in specialty and differentiated products in the US, and stable growth in emerging markets. Furthermore, the management emphasised a continued focus on enhancing the specialty portfolio, expanding presence in complex generics and scaling up innovation-led products. Additionally, ongoing investments in research and development (R&D) and manufacturing capabilities are anticipated to support...

Domestic sales growth driven by volume growth of 6.3% vs IPM volume growth of 1.2% due to leadership position across 14 categories

Q3FY26- Strong numbers barring the US- Revenues grew ~13% YoY to 15520 crore driven mainly by strong growth in India, global specialty portfolio, RoW and Emerging Markets. India growth was strong at 16% to 4999 crore. The US grew 6% YoY with a revenue of 4251 crore (CC term 0.6% growth) due to weakness in generics which was made good by Specialty traction to some extent and currency movements. RoW markets reported growth of ~21% to 2639 crore, mainly due to growth in both generics and specialty. Emerging markets grew ~28% to 3000 crore,...

Sun Pharma (SUNP) posted in-line revenue (adj. for milestone income) and 6% better-than-estimated EBITDA in 3QFY26. Adj. PAT was in line with expectation.

Sun Pharma’s outlook remains strong, driven by high-margin and innovative products. India growth will be led by new launches and upcoming GLP-1 therapies, EM by branded generics, and RoW by complex products. In the U.S., momentum will be supported by LEQSELVI ramp-up, Unloxcyt launch, and continued strength in ILUMYA and CEQUA.

Sales/EBITDA/PAT was 2%/3%-2% above our estimates. Gross Margin was 40 bps lower and EBITDA Margin was 30 bps higher than estimates

Sun’s 2QFY26 EBITDA was ahead of the street and our estimates (by ~12%), on the back of a marginally higher gross margin and lower R&D spend.

Sun Pharma (SUNP) delivered in-line revenue/EBITDA in 2QFY26. Earnings came in below our estimates largely due to lower other income.

Q2FY26- Decent numbers despite flat US growth - Revenues grew ~9% YoY to 14478.3 crore driven mainly by growth in India, global specialty portfolio (now named as Innovative products), RoW and Emerging Markets. India growth was strong at 11% to 4735 crore. The US remained flat YoY with a revenue of 4329 crore due to weakness in generics which was made good by Innovative traction to some extent. RoW markets reported growth of ~23% to 2041 crore, mainly due to growth in both generics and specialty. Emerging markets grew ~16% to 2837 crore,...

Management said that SUNP aims to sustain its outperformance in the domestic formulation (DF) segment through increased doctor engagement, new launches, addition of field force and strengthening the brand recall of its existing products.