Sun Pharma Shares: Brokerages Recommend ‘Buy’ Rating

Quick Summary

• Brokerage Ratings: PL Capital reaffirmed a ‘Buy’ rating for Sun Pharma, increasing its target price to ₹2,000 from the current ₹1,719, citing strong fundamentals and long-term growth potential. Similarly, Emkay Global gave a ‘Buy’ rating with a higher target price of ₹2,250 by march 2026.
• Q4FY25 Results: Sun Pharma reported an 8% YoY revenue growth to ₹12,960 crore and an 11% rise in EBITDA to ₹3,420 crore. Specialty sales slowed down with just 9% YoY growth after several quarters of double-digit increases.
• Market Strategy & Investments: Sun Pharma has reduced reliance on US generics and is focusing more on specialty drugs and markets like India and Rest of world (RoW). It announced $100 million investments tied to launches that aim for long-term sustainability despite near-term margin pressures.
• EPS Forecast Adjustments: FY26-FY27 EPS estimates have been trimmed by both PL Capital (reduced by 4-5%) and Emkay Global (by 4-2%), reflecting increased operational costs due to strategic investments.

Image: !sun Pharma secures licensing agreement

Indian Opinion Analysis

Sun Pharma’s Q4FY25 performance demonstrates steady growth while signaling strategic transitions within its market focus-from reliance on U.S. generics towards specialty drugs in India and emerging economies under its Rest of World strategy. Though specialty sales showed slower-than-expected momentum this quarter (9% YoY), brokerage sentiments remain optimistic about sustainable future growth driven by targeted investments in innovation like Ilumya’s successor assets-a concern that investors had previously flagged.

The $100 million planned investment reflects confidence in scaling upcoming product launches aligned with the company’s holistic pivot toward healthcare dynamics in non-U.S. regions-a move which may insulate against global uncertainties around generic drug markets or regulatory shifts.

Potential risks include short-term pressure on operating margins due to these investments; however, this is partly mitigated by growing consensus among brokerages highlighting robust execution mechanisms linked specifically to specialty pharma pipelines-a critical driver as Sun addresses “what comes next” post-products like Ilumya.

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