Motilal Oswal’s latest research report on Sun Pharma provides valuable insights into the pharmaceutical giant’s specialty pipeline and growth prospects. In this comprehensive analysis, Motilal Oswal delves into the products under development, the commercialized portfolio, and the competitive landscape within each segment.
Despite some setbacks in the clinical trial processes of certain assets, including Ilumya, MM-II, and GL0034, Sun Pharma’s innovative pipeline remains highly promising. The company’s overall research and development expenditure is poised to increase by 33% year-over-year in FY24, supporting ongoing clinical development efforts.
Looking ahead, Motilal Oswal projects a robust 19% earnings compound annual growth rate (CAGR) for Sun Pharma over the fiscal years 2024 to 2026. This growth trajectory is underpinned by a solid sales CAGR of 20% in the Specialty segment, along with healthy growth in the EM-ROW and DF segments.
Furthermore, Motilal Oswal anticipates margin expansion of 210 basis points over the same period, driven by improved operating leverage. Leveraging these insights, Motilal Oswal assigns a bullish price target of INR 1,870 to Sun Pharma, valuing the company at 30 times its 12-month forward earnings.
In light of these findings, Motilal Oswal reiterates its BUY rating on Sun Pharma stock, highlighting the company’s strong growth prospects and compelling investment opportunity. Investors looking for exposure to the pharmaceutical sector may find Sun Pharma an attractive addition to their portfolio, based on Motilal Oswal’s optimistic outlook and bullish target price.
