Buy Sun Pharmaceutical Industries; target of Rs 2150: Prabhudas Lilladher

Moneycontrol • 1 day ago

Original source

Key Investment Pillars

  • Sun Pharma's domestic formulation growth is driven by volume growth, new launches, and field force expansion, with a 17% YoY increase in Q2FY27.
  • The company's global specialty sales are growing, driven by products like Ilumya, Cequa, and Odomzo, with a 7% YoY increase in Q2FY27.
  • The proposed Organon acquisition will expand Sun Pharma's branded generics portfolio and provide an entry into biosimilars, with integration progressing and closure expected in Q4FY27.
  • The acquisition is expected to be EPS accretive from Year 1, with significant EPS accretion expected.

Thesis Validation Checklist

To validate the investment thesis, investors should watch for:

  • Continued strong domestic formulation growth, driven by volume growth and new launches.
  • Expansion of global specialty sales, driven by products like Ilumya, Cequa, and Odomzo.
  • Successful integration of the Organon acquisition and realization of expected synergies.
  • Growth acceleration of the acquired portfolio, driven by biosimilars and branded generics.
  • Improvement in R&D spend and innovation pipeline, with a focus on high-growth areas like oncology and immunology.