Buy Sun Pharma, target price Rs 740: Motilal Oswal

Buy Sun Pharma, target price Rs 740:  Motilal Oswal

Motilal Oswal has buy call on Sun Pharmaceutical Industries Ltd. with a target price of Rs 740. The current market price of Sun Pharmaceutical Industries Ltd. is Rs 590.3.

Sun Pharmaceutical Industries Ltd., incorporated in the year 1993, is a Large Cap company (having a market cap of Rs 141992.64 Crore) operating in Pharmaceuticals sector.

For the quarter ended 31-12-2020, the company reported a Consolidated sales of Rs 8781.84 Crore, up 3.82 % from last quarter Sales of Rs 8458.77 Crore and up 9.25 % from last year same quarter Sales of Rs 8038.65 Crore. Company reported net profit after tax of Rs 1918.11 Crore in latest quarter.

Investment Rationale
The brokerage continues to value SUNP at 25x 12 months forward earnings to arrive at target price of INR740. It remains positive due to: a) superior execution in the Specialty portfolio, b) strong ANDA pipeline, and c) outperformance in the Branded Generics segment.

Promoter/FII Holdings
Promoters held 54.5 per cent stake in the company as of Dec 30, 2020, while FIIs held 12.2 per cent, DIIs 20.8 per cent and public and others 12.5 per cent.

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