Sun Pharmaceutical Industries Ltd. share price target

Q4 EBITDA/adj. PAT declined 17%/28% QoQ (+6%/-5% YoY) due to 350bps QoQ contraction in operating margin

Sun Pharmaceutical’s (Sun) reported Q4FY22 performance was marginally lower than our estimates. Consolidated revenue grew 10.8% YoY to Rs94.5bn (and adj. PAT was up 17.8% to Rs15.8bn. EBITDA margin was 24.8% against our estimate of 25.6%. Specialty portfolio grew 1.6% QoQ to US$186mn versus our estimate of US$185mn led by growth in Ilumya, Cequa and
Odomzo, largely offset by increased generic completion in Absorica.

SUNP, through subsidiary Taro Pharma, to acquire Galderma's skincare arm Alchemee in US$ 90mn all-cash deal

Strong Q3 with YoY growth across geographies; flat sequential growth in domestic/ROW markets due to lower Covid portfolio contribution

Sun Pharma Q3FY22 numbers, Net Profit up 11.14%, above estimates For the quarter ending Dec 2021, consolidated net sales (including other operating income) of Sun Pharmaceuticals Industries has increased 11.61% to Rs 9863.06 crore compared to quarter ended Dec 2020. Operating profit margin has declined from 27.23% to 26.43%, leading to 8.32% rise in operating profit to Rs 2,606.33 crore. Raw material cost as a % of total sales (net of stock adjustments) increased from 16.22% to 17.62%. Purchase of finished goods cost fell from 9.87% to 8.14%. Employee cost decreased from 19.55% to 19.03%. Other expenses rose from 27.01% to 28.42%....

Other expenses inch up QoQ and YoY led by normalization of expenses. growth of +12% YoY aided by 1) specialty ramp-up across the globe, 2) focus significant investments and efforts in specialty business has started paying off in upward trajectory of revenue. Sustained momentum in specialty will help in improving operating leverage and margins. Also, domestic...

Sun Pharmaceuticals is the largest Indian Pharma company.

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...

Sun Pharma records turnaround Q2FY22 numbers, above estimates For the quarter ending September 2021, consolidated Net sales (including other operating income) of Sun Pharmaceuticals Industries has increased 12.54% to Rs 9625.93 crore compared to quarter ended september 2020. Operating profit margin has jumped from 25.64% to 27.32%, leading to 19.91% rise in operating profit to Rs 2,629.94 crore. Raw material cost as a % of total sales (net of stock...

What should investors do? Sun Pharma's share price has increased by ~1.06x over the past five years (from ~| 763 in June 2016 to ~| 815 levels in October 2021). We change our rating from HOLD to BUY due to more consistency on the...

Sun Pharma (SUNP) delivered yet another robust quarterly performance, with the beat on margins led by Domestic Formulation (DF) / Emerging Markets (EM) and sustained momentum in global specialty sales. We raise our earnings estimate by 7%/3% for FY22E/FY23E, factoring in a) a continued ramp-up in the Ilumya-led Specialty portfolio, b) faster growth in non-COVID, Chronic therapy sales in DF, c) superior traction in Emerging Markets, and d) deferred R&D spending on specialty clinical trials. We...

Another quarter of strong margin trajectory in non -Taro business. Sun Pharma (SUNP) reported strong EBITDA growth of +17% YoY and -1.3% QoQ in 2Q aided by 1) ramp up in specialty sales, 2) focus on domestic market and 3) steady growth across ROW market. Company's significant investments and efforts in in specialty business has started paying off as visible in upward trajectory of revenue. Sustained momentum in specialty will help in improving operating leverage and margins. Domestic formulations (32% of total revenue) continue to outperform IPM. We recommend Buy' with...

After having toughed out for more than three years in the US, its flagship product Ilumya is continuously ramping-up sales, with Cequa also showing good traction. This is slightly offset by generic competition in Absorica and difficulty in shifting prescriptions to Absorica LD. Ilumya has been able to carve out a niche for itself in the fiercely competitive Psoriasis segment. Ilumya, being a medical benefit product, does not directly compete with most drugs which fall into the Pharmacy benefits segment. Its new mechanism of action, fewer dosage, and low sideeffects also bode well for better uptake....

Sun Pharma records turnaround Q1FY22 numbers, above estimates Consolidated sales from operations stood at Rs 9718.54 crore, registering a growth of 29% over Q1 FY21. The drug company posted a profit before tax of Rs 1,804.2 crore in Q1 FY22 as compared to a pre tax loss of Rs 2183.9 crore registered in Q1 FY21. EBITDA stood at Rs 2,771.8 crore, up by 59% year on year. Meanwhile, EBITDA margin came to 28.7% in Q1 FY22. Consolidated R&D; investment for Q1FY22 stood at Rs 592.6 crore as compared to Rs 420.6 crore in Q1 FY21. It has report profit after tax of Rs 1901.36 crore in Q1 FY22 as compared to a...