Sun Pharmaceutical Industries Ltd. is a leading global pharmaceutical company based in India, renowned for its high-quality generic medications and specialty products. Founded in 1983, Sun Pharma has grown to become one of the largest pharmaceutical manufacturers in the world, serving over 150 countries.
The company focuses on therapeutic areas such as cardiology, psychiatry, neurology, and dermatology, emphasizing innovation and research. With a commitment to improving patient outcomes, Sun Pharma invests significantly in R&D and adheres to stringent quality standards. Its diverse product portfolio and global reach position Sun Pharma as a key player in the pharmaceutical industry.
Share Price
Sun Pharmaceuticals Ltd share price: Shares of pharma company Sun Pharmaceuticals Ltd are trading at Rs.1,829, 1.39% up from its previous close of Rs. 1803.6 at 9:34 am on Wednesday, November 6, 2024.
Target By Broker
With a target price of Rs 2,280, Motilal Oswal Financial Services has issued a buy call on Sun Pharma. Sun Pharma is currently trading for Rs 1,829. Founded in 1993, Sun Pharmaceutical Industries is a large-cap firm in the pharmaceutical industry with a market valuation of Rs 4,32,660.20 crore.
Financials
The company’s Consolidated Total Income for the quarter ending September 30, 2024, was Rs 13645.39 crore, up 9.29% from the same quarter last year’s Total Income of Rs 12486.02 crore and up 3.49% from the previous quarter’s Total Income of Rs 13185.30 crore. In the most recent quarter, the company achieved a net profit after tax of Rs 3030.67 crore.
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Investment Rationale
According to Motilal Oswal Financial Services, Sun Pharma is still working to develop sustainable growth levers, including: a) expanding its specialty portfolio by adding new products and improving prescriptions; b) developing differentiated products clinically; and c) introducing new products and volume into the branded generics market. Considering the extent of R&D.
The brokerage anticipates a stronger margin shortly if the R&D expenditure is less than anticipated for FY25. Over FY25–27, we expect revenue/EBITDA/PAT CAGRs of 10%, 14%, and 17%. Motilal Oswal has reaffirmed BUY.
Promoter/FII Holdings
Promoters held 54.48 percent stake in the company as of 30-Sep-2024, while FIIs owned 18 percent, and DIIs 18.41 percent.
Conclusion
Sun Pharmaceuticals demonstrates robust growth potential in the pharmaceutical sector. The company’s strong financials and strategic focus on specialty products support this optimism. Moreover, their extensive global presence and diversified portfolio create sustainable revenue streams. Furthermore, the significant promoter holding indicates strong management confidence in the company’s future.
The broker’s target price suggests a substantial upside potential of 24%. Additionally, their investment in R&D and focus on differentiated products strengthens their market position. Meanwhile, increasing institutional holdings reflect growing investor confidence. Looking ahead, Sun Pharma’s commitment to innovation and expanding market reach positions it well for continued growth.
Written By: Dipangshu Kundu
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