Synopsis:
Sun Pharmaceutical Industries Limited is in focus after Citi has assigned a new target price with a buy rating with an upside of more than 34%.
Citi, one of the leading global brokerage firms, has set a new target price for a Pharma stock, reflecting its latest evaluation of the company’s financial performance, growth prospects, and prevailing market trends.
With the market capitalization of Rs. 3,89,484.05 crore, the shares of Sun Pharmaceutical Industries Ltd is trading at Rs. 1,622.50, up by 1.76 percent from its previous day’s close price of Rs. 1,594.30 per equity share. The stock has touched an intraday high of Rs. 1,651.50, up by 3.5 percent from previous day’s close price.
What’s the News?
Citi has maintained its ‘buy’ rating on the stock with the target price of Rs. 2,180, with an upside of 34.36 percent from CMP of Rs. 1,622.50. Citi noted eased trade, pricing, and geopolitical risks, including the removal of the MFN overhang after the Pfizer deal and stable drug prices.
Clarifications from the White House have reduced tariff concerns, improving earnings visibility. Citi highlights Sun Pharma’s strong specialty pipeline, global execution, expanding margins, and a healthier risk environment supporting sustained growth.
The White House clarified that companies with manufacturing facilities “under construction” in the U.S. would be exempt from the tariffs. On September 30, 2025, Pfizer and the U.S. government reached a deal to lower prescription drug costs.
Pfizer will sell many of its main and some specialty medicines at big discounts, averaging 50 percent and sometimes up to 85 percent, through a new government platform called TrumpRx.gov.
In return, Pfizer gets a three-year break from the new 100 percent tariffs on imported branded drugs and it will invest $70 billion in U.S. manufacturing and research. This clarification led to a rebound in pharmaceutical stocks, including Sun Pharma, with shares gaining over 3 percent in today’s trading session.
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About the Company & Financials
Sun Pharmaceutical Industries Limited, founded in 1983 and headquartered in Mumbai, is a global pharmaceutical company that develops, manufactures, and markets branded and generic formulations, active pharmaceutical ingredients (APIs), and over-the-counter products.
Its offerings cover a wide range of therapeutic areas, including cardiology, dermatology, oncology, neurology, and more. The company provides tablets, capsules, injectables, inhalers, creams, and specialty medications, and exports to around 90 countries across Asia, North America, Europe, Africa, South America, and Australia.
In Q1FY26, the company reported revenue of Rs. 13,851 cr, up 9.5 percent YoY from Rs. 12,653 cr in Q1FY25 and 6.9 percent QoQ from Rs. 12,959 cr in Q4FY25. However, profit declined to Rs. 2,293 cr, down 19.8 percent YoY from Rs. 2,861 cr in Q1FY25 and up 6.5 percent QoQ from Rs. 2,154 cr in Q4FY25.
At the moment, the company’s P/E ratio is 34.2x higher as compared to its industry P/E 32.3x. The company’s ROE and ROCE are 16.9 percent and 20.2 percent respectively, and the D/E ratio of 0.03, indicates the company’s financial performance.
Written by Akshay Sanghavi
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