Reduce Sun Pharma, target Rs 482: Elara Capital
Elara Capital has a reduce call on Sun Pharmaceutical Industries Ltd. with a target price of Rs 482 . The current market price of Sun Pharmaceutical Industries Ltd. is Rs 569.25 Time period given by the brokerage is a year when Sun Pharmaceutical Industries Ltd. price can reach defined target. .
Sun Pharmaceutical Industries Ltd., incorporated in 1993, is a largecap company with a market cap of Rs 134278.20 crore.
Investment rationale by Elara Capital
Halol clearance provides comfort on Sun’s achievement of guidance of early double-digit revenue growth in FY19. Focus would shift back to earnings quality and ramp-up in the specialty business. The stock has seen a 10% run-up over past three trading days post FDA status of VAI on the Halol facility. At the CMP, the stock is trading at rich valuations of 25x FY20E P/E and factors in the Halol clearance, in our view. We retain Reduce with a TP of INR 482 based on 22x FY20E P/E.
Sun Pharmaceutical Industries Ltd., incorporated in 1993, is a largecap company with a market cap of Rs 134278.20 crore.
Investment rationale by Elara Capital
Halol clearance provides comfort on Sun’s achievement of guidance of early double-digit revenue growth in FY19. Focus would shift back to earnings quality and ramp-up in the specialty business. The stock has seen a 10% run-up over past three trading days post FDA status of VAI on the Halol facility. At the CMP, the stock is trading at rich valuations of 25x FY20E P/E and factors in the Halol clearance, in our view. We retain Reduce with a TP of INR 482 based on 22x FY20E P/E.
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