The shares of the Pharmaceuticals company, specializing in the business of manufacturing, developing, and marketing a wide range of branded and generic formulations and Active Pharma Ingredients (APIs), are in focus after leading Global Brokerage firm Citi initiated a Buy Target with an upside potential of 35 percent.
With a market capitalization of Rs. 3,92,329.68 Crores on Thursday, the shares of Sun Pharmaceutical Industries Ltd closed at Rs. 1648.90, making a high of Rs. 1650.95 compared to its previous closing price of Rs. 1620.25.
Sun Pharmaceutical Industries Ltd, engaged in the business of manufacturing, developing and marketing a wide range of branded and generic formulations and Active Pharma Ingredients (APIs), is in focus after a leading Global brokerage firm, Citi, initiated a Buy Target of Rs. 2,180 on it with an upto 35 percent Upside Potential from yesterday’s close price.
The reasons for the “Buy” target
Strong Innovation Revenue Growth Outlook
Citi expects Sun Pharma’s innovation-led revenues to increase significantly from $1.2 billion in FY25 to $3.2 billion by FY30, driven by key products like Leqselvi, upcoming PsA approval for Ilumya, and expanded US Medicare coverage. This highlights the company’s strong pipeline and execution in specialty and innovative therapies.
Positive EPS Potential
The brokerage estimates that Sun Pharma’s FY27/28 EPS could be 10–18% ahead of Street consensus, indicating a strong earnings trajectory beyond short-term concerns.
Inclusion in Pan Asia Focus List
Citi has added Sun Pharma to its Pan Asia Focus List, reflecting high conviction in its growth story and reinforcing investor confidence.
Attractive Valuation Amid FY26 Concerns
Despite past concerns regarding FY26 earnings, Citi believes current valuations remain attractive, providing a good entry point for long-term investors.
Long-Term Upside Potential
With a price target of ₹2,180, Citi projects an upside of nearly 35%, supported by strong fundamentals and growth prospects.
Financials & Others
The company’s revenue rose by 9.47 percent from Rs. 12,653 crores to Rs. 13,851 crores in Q1FY25-26. Meanwhile, Net profit declined from Rs. 2,861 crores to Rs. 2,293 crores in the same period.
The company maintains strong financials with a ROCE of 20.2% and ROE of 16.9%, along with a very low debt-to-equity ratio of 0.03. It has delivered consistent profit growth at 23.8% CAGR over the last five years and maintains a healthy dividend payout of 33.8%.
Sun Pharma is a leading global specialty generic pharmaceutical company with a presence in over 100 countries. It operates a highly diversified business model that includes innovative medicines, branded generics, generics, and active pharmaceutical ingredients (APIs). Its focus on innovative medicines is supported by a fast-growing portfolio built on a targeted therapy approach.
In the U.S., Sun Pharma ranks as the 12th largest player in the generics market, while in India, it holds the position of the largest pharmaceutical company. It invests heavily in R&D, engaging in global clinical trials, early-stage novel research, and generic drug development. It operates 40 manufacturing facilities worldwide, capable of producing injectables, sprays, ointments, creams, liquids, tablets, and capsules. The company employs over 43,000 professionals globally, reinforcing its large-scale global operations.
In FY25, Sun Pharma reported total sales of ₹52,000 crore. The company’s revenue is well-diversified across multiple markets and segments. India Formulations contributes the largest share at 33% (₹17,160 crore), followed closely by US Formulations at 31% (₹16,120 crore).
Emerging Markets Formulations account for 18% (₹9,360 crore), while Rest of World (RoW) Formulations add another 14% (₹7,280 crore). The API & Others segment contributes the remaining 4% (₹2,080 crore).
Written by Sridhar J
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