A Business Standard
report, citing sources, said that the Sebi's preliminary enquiry found no merit in the allegation of violation of securities laws, levelled by a whistleblower, against the pharmaceutical major. CLICK HERE TO READ FULL REPORT
HDFC Securities have ‘buy’ rating on Sun Pharma
with a 12-month target price of Rs 545 as the brokerage expects a recovery in the profitability (24 per cent margin) by FY21E once Ilumya and Cequa achieve scale in the US, while the generics business’ growth receives support from quality approvals from Halol.
remains on track to achieve its double-digit revenue growth guidance for FY20E. However, margins may remain subdued as it spends 3-5 per cent of total revenues on its specialty business, whose revenues are catching up slowly. With higher R&D guidance and the expected launch of Cequa in 3QFY20, EBITDA margins are likely to contract over the following quarters, in our view,” the brokerage firm said in a results review note dated August 14, 2019.
“With a significant part of revenues expected to come in from the branded business in 3-4 years, we believe the stock will continue to command a premium,” it added.
Further, analysts at KRChoksey Shares and Securities expect Sun Pharma’s topline/bottom-line to grow by CAGR 12.3 per cent/19.9 per cent over the period FY19 to FY21 on back of specialty revenue and commercialisation of Cequa in Q3FY20 while EBITDA (earnings before interest, tax, depreciation and amortisation) margin is forecast to further expand in near term with traction seen in Ilumya.