507.55 7.10 (1.42%)
NSEOct 01, 2020 01:24 PM
The 48 reports from 15 analysts offering long term price targets for Sun Pharmaceutical Industries Ltd. have an average target of 557.00. The consensus estimate represents an upside of 9.74% from the last price of 507.55.
|Summary||Date||Stock||Broker||Price at Reco.||Target||Price at reco|
Change since reco(%)
|2020-09-21||Sun Pharmaceutical I..||Dolat Capital||503.65||660.00||503.65 (0.77%)||30.04||Buy|
Given the structural headwinds in the US faced by Indian generic companies, Sun's investments to build a branded specialty business is a key differentiator. However, Specialty pharma is a vastly different business model compared to traditional generics requiring significantly...
|2020-08-11||Sun Pharmaceutical I..||SMC online||520.80||520.80 (-2.54%)||Results Update|
Sun Pharma records Q1 net loss of Rs 1641 cr, misses estimates Total income declined 9.6% on a year-on-year (YoY) basis to Rs 7,467.19 crore in the first quarter of the financial year 2020-21. Research and development expenses rose 2.1% YoY to Rs 415.19 crore in Q1 June 2020....
|2020-08-07||Sun Pharmaceutical I..||KRChoksey||525.95||619.00||525.95 (-3.50%)||21.96||Buy|
Sun Pharma reported Revenue decline of 9.4% YoY (down 7.3% QoQ) to INR 75,853 mn. EBITDA though declined 8.5% YoY to INR 15,051 mn, rose on QoQ basis by 17.2%. EBITDA margin expanded 23 bps YoY to 23.2% in 1QFY21 (from 23.0% in 1QFY20). On the sequential basis, EBITDA expanded by 487 bps. Company reported a net loss of INR 16,556 mn for the quarter primarily due to exceptional items of INR 36,333 mn during the quarter, company reported Adj Net Profit of 11,460 mn with a Net Profit Margin of 15.3% for the quarter. The Board of Directors of the Company at its meeting held on July 31, 2020, approved the Scheme of Amalgamation and Merger between the Company and Sun Pharma Global FZE (wholly owned subsidiary of the Company) which inter-alia, envisages merger of Sun Pharma Global FZE into the Company. The scheme shall be effective post receipt of required approvals and accordingly,...
|2020-08-06||Sun Pharmaceutical I..||Geojit BNP Paribas||532.15||570.00||532.15 (-4.62%)||12.30||Hold|
Geojit BNP Paribas
Weak US business impacts Q1; Outlook cautious Sun Pharma is India's top drug maker and world's fifth largest specialty generic pharmaceutical company. The company develops, manufactures, and markets branded and generic formulations and active pharmaceutical...
|2020-08-03||Sun Pharmaceutical I..||HDFC Securities||519.40||535.00||519.40 (-2.28%)||Target met||Accumulate|
Sun's balance sheet continues to remain strong (repaid ~USD200mn debt in Q1). We increase our EPS estimates by 4%/7% to factor the beat and improvement in gross margin. We maintain Add rating with revised TP of Rs535 Suns Q1 EBIDTA/PAT beat expectations on account of improved gross margin (product mix, productivity) and lower expenses (SG&A; and R&D;). India business grew by 3% YoY (chronic led). The US business declined 25% QoQ, impacted by muted trends in specialty (in line with expectations) and generics (Taro, price erosion). However, market share for specialty products were maintained at pre-Covid levels. The scale up in specialty is key to drive operating leverage and margins. While the costs pertaining to this business are largely expensed, the revenue traction is yet to be seen.
|2020-08-03||Sun Pharmaceutical I..||Nirmal Bang Institutional||519.40||625.00||519.40 (-2.28%)||23.14||Buy|
Sun Pharmaceutical Industries- 1QFY21 Result Update- Cost savings offset the impact of COVID lockdown
Nirmal Bang Institutional
Sun Pharmaceutical Industries' (SPIL) 1QFY21 revenue at Rs75,853mn is down 7.3% QoQ and 9.4% YoY as there was a slowdown across geographies with India and API business being an exception. US sales (US$282mn) declined by 33.5% YoY and 21% QoQ. Emerging Markets sales were down 10% YoY as the company lost tender sales in South Africa. Rest of the world sales declined by 18% YoY due to slowdown in Japan and lower sales of Taro Pharma (ex US). In line with the broader trend seen so far, API sales grew by 20% YoY and India sales were up in low single digits. Revenue is 5% above our estimate and 6% below consensus estimate. Despite weak revenue, EBITDA declined by just 7.6% YoY, growing by...
|2020-08-03||Sun Pharmaceutical I..||Karvy||519.40||536.00||519.40 (-2.28%)||Target met||Sell|
|2020-08-02||Sun Pharmaceutical I..||Prabhudas Lilladhar||525.95||479.00||525.95 (-3.50%)||5.63||Sell|
Q1FY21 Result Update - Specialty, Taro to remain weak; Lower overhead likely to be unsustainable - ...
Net loss of Rs16.5bn due to Taro DOJ settlement and provision SUNP 1QFY21 revenue were lower than our estimate because of US specialty and Taro sales while adj. EBITDA margin positively surprised at 23.1% (PLe :20.4%) due to 1) lower R&D; spend (5.6% of sales v/s 6.4% QoQ) and 2) lower SGA costs led by travel restriction on employees and lower marketing...
|2020-08-02||Sun Pharmaceutical I..||ICICI Securities Limited||531.70||625.00||531.70 (-4.54%)||23.14||Buy|
ICICI Securities Limited
Revenues de-grew 9.4% YoY to | 7585 crore (I-direct estimate: | 7948 crore) mainly due to 27.5% YoY decline in US formulations to | 2136 crore due to high base and continued pressure on dermatology segment (Taro included). India business grew 3.2% YoY to | 2388 crore whereas Emerging Markets business de-grew 2.4% YoY to | 1316 crore. RoW markets business also degrew 11.1% YoY to | 1030 crore. EBITDA margins expanded 47 bps YoY, 765 bps QoQ to 24.3% (I-direct estimate: 17.0%) despite higher employee expenses mainly due to lower other expenditure and better gross margins. EBITDA de-grew 7.6% YoY to | 1844 crore (I-direct estimate: | 1351 crore)....
|2020-08-01||Sun Pharmaceutical I..||BOB Capital Markets Ltd.||519.40||530.00||519.40 (-2.28%)||Target met||Sell|
|2020-08-01||Sun Pharmaceutical I..||Motilal Oswal||531.70||635.00||531.70 (-4.54%)||25.11||Buy|
Despite the adverse impact on off-take of its Specialty portfolio due to COVID, SUNPs market share remained intact and gradual recovery is expected over the near-to-medium term. Maintain SUNPs 1QFY21 sales were down 10% YoY to INR75.7b (v/s est. Accordingly, we have raised our price target to INR635 (from INR525 earlier) on We believe SUNPs RoE is at a trough and would improve with 19% earnings CAGR over FY20-22E, led by improving traction in the Specialty portfolio, enhanced MR efforts in DF, and better operating leverage. Considering that market share remains intact, SUNP is continuing its efforts to build more traction in its Specialty portfolio. We expect US sales to show moderate growth SUNP delivered 3% YoY growth in 1QFY21 despite challenging market conditions on account of COVID. We expect 9% sales CAGR over FY20-22E in this segment, led by increased traction in DF outperformance (v/s industry) coupled with recovery from COVID related disruptions and gradual improvement in the Specialty portfolio segment.
|2020-07-31||Sun Pharmaceutical I..||Prabhudas Lilladhar||532.25||479.00||532.25 (-4.64%)||-5.63||Hold|
Taro Pharma's sales declined 33% QoQ to US$118m in Q1FY21 v/s US$175m in Q4FY20. The company reported lowest revenue in last 36 quarters including lowest ever gross profit and gross margin. Though Q4FY20 was an exceptional quarter where revenues shot up due to stocking up during COVID yet its revenue, gross profit and gross margin continued to be impacted due to derma products price erosion. Taro reported net loss of US$434m due to...
|2020-06-16||Sun Pharmaceutical I..||BOB Capital Markets Ltd.||488.10||488.10 (3.98%)||Economy Update|
BOB Capital Markets Ltd.
Weekly Wrap: Risk-off drives markets lower. Wholesale Inflation: Lower fuel prices drives sharp reduction in WPI inflation. Trade: Exports recover faster than imports. SUNP: Ilumya out-licensed to Hikma for MENA region
|2020-06-15||Sun Pharmaceutical I..||Dolat Capital||485.80||530.00||485.80 (4.48%)||Target met||Buy|
US drug price fixing probe recurs with fresh lawsuit Attorneys general of US of 51 states and territories filed a lawsuit against Taro, Perrigo and Sandoz in the US for price cartelization during 2009 to 2016 for 80 drugs. Apart from this, companies such as Teva, Mylan, Actavis and Glenmark have also been named in the lawsuit. This is the 3rd lawsuit in the series of anti-trust compliant (1st filed in Dec 2016 and 2nd in May 2019). Our analysis of drugs where price hikes where taken indicates liability of US$250mn (see exhibit below) against the criminal lawsuit....
|2020-06-15||Sun Pharmaceutical I..||BOB Capital Markets Ltd.||485.65||470.00||485.65 (4.51%)||Target met||Sell|
|2020-06-09||Sun Pharmaceutical I..||Geojit BNP Paribas||480.10||587.00||480.10 (5.72%)||15.65||Buy|
|2020-05-29||Sun Pharmaceutical I..||Karvy||474.25||506.00||474.25 (7.02%)||Target met||Hold|
|2020-05-28||Sun Pharmaceutical I..||HDFC Securities||459.10||480.00||459.10 (10.55%)||Target met||Accumulate|
Maintain Add, risks: We increase our TP to Rs480 based on 21x FY22e EPS in line with peers. Key risks: Delay in resolution of Halol 483s, higher price erosion in the US, lower growth in the India business, slower ramp up in specialty, adverse outcome on ongoing SEBI probe on whistle-blower complaint, DOJ investigation, and drug price fixing lawsuit in the US. Suns Q4 EBIDTA/PAT missed expectations on account of higher costs and certain one off expenses. US business (ex Taro) was largely stable. The ramp up in global specialty business was encouraging (+7% QoQ) led by traction in Ilumya, Yonsa and Cequa, however, the outlook for FY21 remains sluggish. Specialty related costs will remain elevated whereas ramp up in revenues may get delayed exacerbated by Covid led challenges. On the other hand, Suns balance sheet continue to remain strong with increased focus on cash conservation (repaid ~USD400mn debt in FY20) and cash collection during uncertain times. We maintain Add rating with revised TP of Rs480.
|2020-05-28||Sun Pharmaceutical I..||BOB Capital Markets Ltd.||474.25||470.00||474.25 (7.02%)||Target met||Sell|
|2020-05-28||Sun Pharmaceutical I..||Prabhudas Lilladhar||465.40||467.00||465.40 (9.06%)||Target met||Hold|
We believe SUNP's US business continues to be biggest hangover on earnings over FY20-22E due to 1) Taro's continued underperformance, 2) lower than expected ramp up in US Specialty 3) regulatory hurdle in Halol and 4) pricing pressure in US derma products. Over several quarters SUNP had been quite optimistic about their specialty products, however it has failed to meet its own expectation. Much hyped Ilumya was able to generate only US$94mn in FY20 even after 18months of its launch. With requirement of...