CLSA maintains buy rating on Sun Pharma with a price target at Rs 520 as stock remains attractive due to its strong India positioning
Sun Pharmaceutical Industries shares rallied 4 percent intraday on June 26 after global brokerage CLSA said it expects the stock to return 35 percent on its strong India positioning.
"We maintain buy rating on the stock with a price target at Rs 520 as the stock remains attractive due to its strong India positioning and improving US outlook that will aid profitability," the research firm said, adding India profitability improved over FY15-18.
Company's shift of focus from tail brands is leading to slow growth but improved profitability, CLSA said, adding Sun has lost 50 basis points market share in India over the past two years, which can be largely attributed to slow growth in anti-infectives.
Top 100 brands saw strong double-digit growth, though muted growth in brands outside top brands drove overall slowdown.
The stock was quoting at Rs 399.75, up Rs 14.30, or 3.71 percent on the BSE at 1134 hours IST.
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