Sun Pharmaceutical Industries Ltd. share price target

Q1FY18 EBITDA down 62% YoY to Rs 10.9 bn (39% below our estimate) on lower US sales (Taro-US sales down 31%, ex-Taro US sales lower 48% on high gGleevec base) and 5% drop in domestic business (channel destocking on GST rollout).

Revenue decreased by 9.65% to Rs. 6166.66 Cr in Q1FY18 when compared to the previous quarter Revenue decreased by 9.65% to Rs. 6166.66 Cr in Q1FY18 when compared to the previous quarter

We maintain NEUTRAL rating with a revised TP of Rs 455 (18x June19E + Rs 40/sh). We have cut the EPS multiple from 20 to 18, considering the deteriorating business fundamentals. 1QFY18 was one of Sun Pharmas (SUNP) worst quarters in the past decade, with margins dipping to 17.6% (halved YoY), and a reported loss of Rs 4.2bn. Even adjusted for one-off legal settlement charges of Rs 9.2bn, PAT was down 74% YoY and 57% sequentially. The top-line sunk 25%YoY (13% QoQ) to Rs 62bn, with GST hurting the India business revenue (-5% YoY) and increased competitive intensity for Taro lowering US revenues (-11% QoQ) this quarter.

For 4QFY2017, Sun Pharma posted tepid numbers. For the quarter, the sales came in at `6,825cr v/s. `7,600cr expected, registering a yoy dip of 7.9%. India sales at `1,916cr, were up by 10% as compared to 4QFY2016, US finished dosage sales at US$381mn down by 34% vis--vis 4QFY2016. On the OPM front, the gross margins came in at 67.8%...

While EBITDA (adj. for USD 45mn one-off inventory charges) was Rs 18.5bn, it was 23% below our estimate due to lower US sales (Taro-US salesdeclined 26% YOY, ex-Taro US sales down 40% YoY).

with Indian and US as its focus markets. It makes and markets specialty medicines and APIs for chronic therapy areas such as cardiology, psychiatry, neurology, etc. Strength in high-growth chronic segments has propelled Sun to sixth rank in the domestic formulations market, with consistent outperformance to market and large-sized peers. Sun has forayed into regulated markets by acquiring majority stake in Caraco Pharma and has strengthened its presence in US by recent acquisition of Taro. With Taro's acquisition, Sun has become...

Sun Pharmaceuticals Industries Ltd Q4FY17 results comment.

Sun Pharma (SUNP) posted underwhelming numbers in 4QFY17. Revenue declined ~7%YoY to Rs 71.4bn, and the EBITDA margin plummeted 800bps to 21.7%, the lowest in the last eight quarters.

Revenue rose by 80.48% to Rs. 41.6 Cr in Q4FY17 when compared to the previous quarter.

Sun Pharma: Launched its first specialty ophthalmic drug, Bromsite (in-site pipeline) in the US in Q3'17; Dilip Buildcon: Diversifying to access adjacent revenue stream