Analysts stay bullish on Sun Pharma, raise targets

Most brokerages have maintained a bullish rating and some have raised the target price on as the drug maker on Friday reported a 42.7% year-on-year increase in consolidated net profit to ₹2,060.88 crore in the June quarter.

Shares of ended up at 5.45% at ₹943.55 on Friday.

"We maintain our buy rating on Sun Pharma as we like its non-reliance on US generic drugs and traction in its speciality drugs segment," said Jefferies which has raised the target price on the stock to ₹1,089 from ₹1,020.

Along with Jefferies, , HSBC and CLSA have maintained a buy rating on the stock.

According to CLSA, a strong base business comprised of India formulations and diversified operations in emerging markets, coupled with the success of its global speciality products are the key earnings catalysts for Sun Pharma.

"A pipeline of four products at various stages of clinical trials should sustain healthy momentum in its speciality business over the medium-to-long term. The expansion of its field force is on track for the India business and Sun Pharma should continue to see market share gains," said CLSA.

Meanwhile, Goldman Sachs has retained a sell rating on the stock. The brokerage foresees industry-wide US price erosion and a slower, more normal growth.