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SUNPHARMA Share Price Target
Sun Pharmaceutical Industries Ltd.
Sector: Pharmaceuticals and health care
Sector: Pharmaceuticals and health care
SUNPHARMA Long Term Analysts Rating
- ★★
- ★★
- ★★
- ★★
- ★★
3.8/5 (25 Ratings)
SUNPHARMA Share Price *
448.35 +0.55 (0.12%)
* (quote may be delayed)
26 SUNPHARMA share price target reports by brokerages below. See what is analyst's view on SUNPHARMA share price forecast, rating, estimates, valuation and prediction behind the target. You may use these research report forecasts for long-term to medium term for your investment or trades in 2020.
You can also find SUNPHARMA share price target tomorrow or next week from SUNPHARMA discussion forum.
SUNPHARMA Share Price Forecast - Consensus
| No. of reports in last year | 26 |
| No. of analysts | 10 |
| Average Consensus Forecast | 487.54 |
| Consensus Potential | 6.32% |
SUNPHARMA Share Price Target - Broker Reports - 2020
Prabhudas Lilladher
9-Jan-20
Price @ Call: 440.1
Target: 396
REDUCE
We believe Ilumya will face stiff tough competition from AbbVie’s Skyrizi (Risankizumab) and J&J’s Tremfya (Guselkumab) because of the lower efficacy level with PASI (Psoriasis Area Severity Index) score of 75 in week 28 versus Skyrizi & Tremfya PASI of 90 in just 16 weeks. With more than 15months’ post launch of Ilumya in US, its market share has been lower than 2% in interleukin (IL) treatment for psoriasis/psoriatic arthritis, while Skyrizi and Tremfya have gained market share of more than 2% and 5% respectively. Although market expects Ilumya peak sales of US$300-350mn, we believe strong competition from IL-23 drugs (Skyrizi and Tremfya) will restrict Ilumya peak sales at US$100-130m. Currently, SUNP’s specialty portfolio has launched eight products and with a quarterly sale of $90-100m on $1bn investment till date. We believe lower realization in specialty portfolio, higher overhead costs (promotion costs, employee costs of reps for brands and R&D), FDA concerns over Halol plant and corporate governance issues will remain a valuation overhang. Maintain ‘Reduce’ with TP Rs396.
SUNPHARMA Share Price Target - Broker Reports - 2019
Prabhudas Lilladher
21-Dec-19
Price @ Call: 431.68
Target: 396
REDUCE
Halol received EIR in June CY18, around 30 months after it received first WL in December CY15.With the likely possibility of the conversion into WL, this could impact growth in non-Taro generics in the US. Non-Taro US sales were US$856m(FY19) and Halol contributed 10% (US$150m) of overall US sales of US$1,526m(FY19). Management guided incremental US$100m sales from Halol in FY20E post-resolution. In the case of WL for Halol in Q1FY21E, non-Taro sales to be impacted due to lower volume of exports to the US and restriction on new approvals.The observations may also impact the revenues of Q4FY20E. We maintain ‘Reduce’ with TP Rs396.
Motilal Oswal
20-Dec-19
Price @ Call: 431.68
Target: 515
BUY
We remain positive on SUNP on improving traction in the specialty portfolio, industry-level growth in domestic formulation (DF) and increasing pace of approvals in the US generics segment. We continue to value SUNP at 22x 12M forward earnings to arrive at a price target of INR515. Maintain Buy.
Reliance Securities
11-Nov-19
Price @ Call: 416.38
Target: 500
BUY
SUNP has reported a good performance in 2QFY20 led by growth in India and RoW market. Ramp-up in specialty biz is a key growth driver going ahead. At CMP, stock trades at 22.0x and 17.7x of FY20 and FY21 earnings, respectively (12-month fwd 3-yr avg. Bloomberg PE at ~27x; below 1-SD three-year average), which is attractive to take fresh position, in our view. In light of increasing business visibility in India and other geographies, we maintain our BUY recommendation on the stock with a Target Price of Rs500.
Prabhudas Lilladher
7-Nov-19
Price @ Call: 435.34
Target: 396
REDUCE
Management maintained guidance of significant cost push (promotion, marketing and employee) of launching branded specialty products going forward. Expecting continuation of headwinds in US generics, SUNP guided for launch of generics with limited competition. The SUNP valuation remains challenging and one of the highest among its peers as it trades at PE of 23.3x and 22.2x of FY20E and FY21E. We maintain ‘Reduce’ and retain TP at Rs396.
Prabhudas Lilladher
6-Nov-19
Price @ Call: 429.05
Target: 396
REDUCE
Edelweiss
16-Aug-19
Price @ Call: 416.8
Target: 380
REDUCE
Near-term challenges in specialty eclipse the medium-term outlook as the ramp up has been slow even as competition is intensifying. While the stock price seems to be ascribing a fair value to domestic and EM businesses, it overestimates the opportunity in specialty. Hence, we maintain ‘REDUCE/SU’ with TP of INR380.
Karvy Stock Broking
14-Aug-19
Price @ Call: 417.91
Target: 462
HOLD
We upgrade our revenues by 0.4% for FY20E on back of upgrade in ROW and API business and downgrade it by 0.5% for FY 21E by removing one time supply of generics in FY20E. We maintain our EBDITAM for FY20E while we downgrade for FY21E by 18 bps due to lower gross margins. We upgrade our EPS estimates for FY20E /FY21E by 2.1%/ 1.1% to Rs 17.8 / Rs 21. Due to upgrade in earnings we revise price target of Rs 462 based on 22x FY21E (EPS Rs 21) and maintain our HOLD rating on the stock.
Nirmal Bang
14-Aug-19
Price @ Call: 417.91
Target: 578
BUY
The EBITDA margin recovered on sequential basis and showed significant growth on recovery of domestic business and declining other expenses as a percentage of revenue. Net earnings Rs13,875Mn were higher than our/consensus estimate by 11.3%/36.8%, respectively. The net earnings showed a growth of 118.2% QoQ and 41.2% YoY. We have retained Buy rating on SPIL with a target price of Rs 578.
Prabhudas Lilladher
14-Aug-19
Price @ Call: 437.55
Target: 396
REDUCE
Management maintained guidance of significant cost push (promotion, marketing and employee) of launching branded specialty products going forward. Expecting continuation of headwinds in US generics, SUNP guided for launch of generics with limited competition. The SUNP valuation remains challenging and one of the highest among its peers as it trades at PE of 23.1x and 22.1x of FY20E and FY21E. While SUNP tries to address the issues over corporate governance, we expect this will remain a hangover over the valuation of SUNP and eliminate premium valuation in comparison to peers. We maintain ‘Reduce’ and retain TP at Rs396 (PE 20x of FY21E earnings).
Reliance Securities
14-Aug-19
Price @ Call: 417.91
Target: 500
BUY
SUNP has reported a strong performance in 1QFY19 on the back of healthy growth across geographies. On positive note, it completed the transition in distribution in India business from AML to WOS, following which it reported 12% YoY underlining growth and expects better-than- covered-market growth of 9-10%. Though SUNP had addressed some corporate governance issues raised by the investors, we see the SEBI-related issues continue to remain event-specific risk for the stock in the near-term. Owing to increasing visibility in India and other businesses, we maintain BUY recommendation on the stock with a Target Price of Rs500.
HDFC Securities
14-Aug-19
Price @ Call: 417.91
Target: 545
BUY
Positive outlook persists
We maintain BUY on SUNP following a beat to our estimates. Our TP is at Rs 545 (22x FY21E EPS). The execution in specialty segment is crucial. At CMP, the stock is trading at 23.5/17.7x FY20/21E EPS, a ~15% premium to peers. 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.
We maintain BUY on SUNP following a beat to our estimates. Our TP is at Rs 545 (22x FY21E EPS). The execution in specialty segment is crucial. At CMP, the stock is trading at 23.5/17.7x FY20/21E EPS, a ~15% premium to peers. 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.
Sharekhan
13-Aug-19
Price @ Call: 434.33
Target: 500
HOLD
Valuation - Maintain Hold with an upward revised PT of Rs. 500
The stock has corrected by almost 35%+ from its high and is currently trading at 14.2x its FY2021E earnings. We expect the company to report sales and profit CAGR of 20% and 38%, respectively, over the next two years. Although the quarter’s performance was better than expectation, the company still faces pending litigation case in the U.S. for pricing collusion. We feel FY2020 will reflect full impact of increased coststructure (on account of speciality pipeline build up); and from FY2021due to new launches, OPM could see significant improvement. Although valuation seems reasonable, we would like to monitor the sustainability of Q1 performance before taking a constructive view to upgrade the stock rating. We maintain our earnings estimates for FY2020E and FY2021E. We also maintain our Hold rating on the stock. However, we have revised the PT upward to Rs. 500.
The stock has corrected by almost 35%+ from its high and is currently trading at 14.2x its FY2021E earnings. We expect the company to report sales and profit CAGR of 20% and 38%, respectively, over the next two years. Although the quarter’s performance was better than expectation, the company still faces pending litigation case in the U.S. for pricing collusion. We feel FY2020 will reflect full impact of increased coststructure (on account of speciality pipeline build up); and from FY2021due to new launches, OPM could see significant improvement. Although valuation seems reasonable, we would like to monitor the sustainability of Q1 performance before taking a constructive view to upgrade the stock rating. We maintain our earnings estimates for FY2020E and FY2021E. We also maintain our Hold rating on the stock. However, we have revised the PT upward to Rs. 500.
Reliance Securities
30-May-19
Price @ Call: 415.9
Target: 500
BUY
Decent Performance Post One-off Adjustment; Maintain BUY. Outlook & Valuation: SUNP’s 4QFY19 performance were decent on account of (1) improvement in the US business; (2) distribution transition in domestic business is on track. Recently, SUNP has addressed some corporate governance issues raised by the investors, which in our view is a very positive move. We view SEBI-related issues as event-specific risks for the stock in the near-term. We reduce our PAT estimate by 17%/13% for FY20E/FY21E owing to higher R&D spend and higher marketing spend for specialty segment in the US. We also reduce our target multiple to 20x (from 22x earlier), as we roll-over our earnings estimate to FY21E. As we believe the current valuation (PE multiple of 16.6x FY21E earnings) offers favourable risk-reward, we maintain BUY recommendation on the stock with a revised Target Price of Rs500 (from Rs535 earlier).
HDFC Securities
30-May-19
Price @ Call: 422.85
Target: 600
BUY
SUNP is likely to be in an investment phase for its US specialty business over FY20, with 7-8 products in the US, slow ramp up and heightened promotional spend (300- 400bps margin impact). Meanwhile, the growth in the domestic biz is expected to return to double-digits while the co is also initiating cost control measures to improve margins.We maintain BUY on SUNP following a miss to our estimates owing to a one-off. Our TP is revised to Rs 600/sh (22x FY21E EPS + Rs 40/sh for specialty). Hopes are hinged on a ramp up in specialty business.
ICICIdirect.com
29-May-19
Price @ Call: 412.9
Target: 460
HOLD
The management expects continuous frontloading of cost as the company enters the thick of investment activities for specialty launches. This optical move is the culmination of the long ongoing endeavour of the management for a drift from generics to specialty in the backdrop of US headwinds. We believe this is the key differentiator vis-à-vis peers. However, despite this,we expect investors to remain cautious in the backdrop of whistle blower’s complaint filing to Sebi and its possible outcome. These issues are likely tooutweigh the company’s steady fundamentals in the near term. Our target price is Rs 460 based on 18x FY21E EPS of Rs 23.4 and Rs 38 NPV for Ilumya.
Karvy Stock Broking
29-May-19
Price @ Call: 412.9
Target: 458
HOLD
We decrease our revenues by 3.5%/ 3% for FY20E /FY 21E on back of downgrade in domestic formulations business. We decrease our EBDITAM by 220 bps to 22.7 % for FY 20E and by 150 bps to 23.7 % for FY 21E due to scale up in promotional spend. We downgrade our EPS estimates for FY20E /FY21E by 18.3%/ 16% to Rs 17.4 / Rs20.8. On account of downgrade in earnings we revise our rating to HOLD and our price target to Rs 458 based on 22x FY21E (EPS Rs 20.8).
Nirmal Bang
29-May-19
Price @ Call: 412.9
Target: 578
BUY
We exercise caution in the backdrop of a whistle-blower’s complaint to the Securities and Exchange Board of India or SEBI anda possible adverse outcome of that investigation. We have tweaked our estimates and assigned Buy rating to SPIL with a target price of Rs578 (down from Rs581), which is based on 20xFY21E EPS and at a discount to the historical trading multiple. There is potential for the stock to trade at a higher level if the company is able to come out clean from the ongoing whistle-blower investigation.
Motilal Oswal
29-May-19
Price @ Call: 417.53
Target: 480
BUY
We cut our FY20/21 estimate by 9%/8% to factor in increased marketing spend toward the specialty portfolio in the US market. We also reduce the P/E multiple to 22x (from 23x) 12M forward earnings basis to factor in the delayed pick-up in the US generics business post resolution of the regulatory issue at Halol. Accordingly, we arrive at a TP of INR480. Maintain Buy.
IIFL
4-Apr-19
Price @ Call: 465.06
Target: 450
REDUCE
Nirmal Bang
7-Mar-19
Price @ Call: 459.95
Target: 581
BUY
Sun Pharmaceutical Industries (SPIL) is India’s largest and the world’s fifth-largest generic pharmaceutical company. We initiate coverage on SPIL with a Buy rating and a target price of Rs581 (20x FY21E EPS) and estimated revenue and EPS CAGR of 12% and 47%, respectively. We expect US$600mn in incremental sales from new product launches in the specialty pharmaceutical space, primarily driven by Cequa and Ilumya. Subsidiary Taro Pharmaceuticals’ earnings are expected to decline by 9% CAGR driven by rising competitive intensity. Rest of the US business for SPIL (excluding Taro Pharmaceuticals and Dusa Pharmaceuticals) should start growing as 123 ANDAs (abbreviated new drug applications), which are pending approval, gradually start reflecting in incremental revenues. Price erosion in base business is unlikely to be painful as the same is now commoditised with a median competitive intensity of eight players across its marketed ANDA portfolio.
Reliance Securities
15-Feb-19
Price @ Call: 424.35
Target: 535
BUY
Looking ahead, we expect JKT’s performance to improve further owing to sustained growth in sales volume, reduction in manpower cost and benign input cost. At CMP, the stock trades at a lower multiple vis-à-vis its peers mainly due to high debt. However, we expect a likely pick-up in utilisation and moderate capex requirement to help JKT to control its D/E ratio in the coming quarters. Factoring margin pressure, we lower our earnings estimates for FY20E, while we maintain our EBIDTA and EPS estimates for FY21E. Post recent correction, the stock trades at attractive at valuation of 5.2x FY21E EPS. Maintaining our estimates and valuation multiples for FY21E owing to strong quarterly performance, we reiterate our BUY recommendation on the stock with an unrevised Target Price of Rs135, valuing the stock at 8xFY21E EPS.
HDFC Securities
14-Feb-19
Price @ Call: 431.15
Target: 605
BUY
Motilal Oswal
13-Feb-19
Price @ Call: 436.75
Target: 540
BUY
Karvy Stock Broking
13-Feb-19
Price @ Call: 436.75
Target: 469
HOLD
ICICIdirect.com
13-Feb-19
Price @ Call: 441.74
Target: 460
HOLD
Motilal Oswal
23-Jan-19
Price @ Call: 418.05
Target: 560
BUY
Reliance Securities
23-Jan-19
Price @ Call: 418.05
Target: 610
BUY
SUNPHARMA Share Price Target - Broker Reports - 2018
ICICIdirect.com
5-Dec-18
Price @ Call: 442.8
Target: 460
HOLD
Edelweiss
4-Dec-18
Price @ Call: 455.3
Target: 430
BOOK PROFIT
Sharekhan
4-Dec-18
Price @ Call: 453.26
Target: 525
HOLD
HDFC Securities
15-Nov-18
Price @ Call: 517.05
Target: 670
BUY
Prabhudas Lilladher
13-Nov-18
Price @ Call: 568.21
Target: 447
REDUCE
HDFC Securities
6-Nov-18
Price @ Call: 572.6
Target: 690
BUY
Geojit Financial Services
30-Oct-18
Price @ Call: 565.78
Target: 620
BUY
Motilal Oswal
20-Sep-18
Price @ Call: 647.92
Target: 790
BUY
Motilal Oswal
9-Sep-18
Price @ Call: 655.91
Target: 790
BUY
ICICIdirect.com
17-Aug-18
Price @ Call: 619.6
Target: 690
BUY
Prabhudas Lilladher
16-Aug-18
Price @ Call: 601.65
Target: 447
REDUCE
HDFC Securities
16-Aug-18
Price @ Call: 601.65
Target: 670
BUY
Motilal Oswal
14-Aug-18
Price @ Call: 589.94
Target: 700
BUY
Sharekhan
14-Aug-18
Price @ Call: 589.94
Target: 690
BUY
HDFC Securities
23-Jul-18
Price @ Call: 559.9
Target: 649
BUY
Geojit Financial Services
19-Jun-18
Price @ Call: 570.85
Target: 597
HOLD
Elara Capital
15-Jun-18
Price @ Call: 559.65
Target: 482
REDUCE
Prabhudas Lilladher
8-Jun-18
Price @ Call: 521.21
Target: 447
REDUCE
Motilal Oswal
8-Jun-18
Price @ Call: 521.21
Target: 610
BUY
KRChoksey
6-Jun-18
Price @ Call: 483.63
Target: 539
ACCUMULATE
Prabhudas Lilladher
26-May-18
Price @ Call: 463.2
Target: 447
REDUCE
Motilal Oswal
26-May-18
Price @ Call: 463.2
Target: 560
BUY
Investec Securities
17-May-18
Price @ Call: 471.85
Target: 435
SELL
Prabhudas Lilladher
14-May-18
Price @ Call: 471.85
Target: 447
REDUCE
Sharekhan
22-Mar-18
Price @ Call: 510.93
Target: 600
HOLD
Prabhudas Lilladher
6-Mar-18
Price @ Call: 547.85
Target: 447
REDUCE
Motilal Oswal
6-Mar-18
Price @ Call: 543.77
Target: 675
BUY
Prabhudas Lilladher
14-Feb-18
Price @ Call: 578.74
Target: 447
REDUCE
Motilal Oswal
14-Feb-18
Price @ Call: 578.74
Target: 675
BUY
SUNPHARMA Share Price Target - Broker Reports - 2017
Angel Broking
24-Nov-17
Price @ Call: 547.49
Target: 615
BUY
Khambatta Securities
23-Nov-17
Price @ Call: 535.2
Target: 579
BUY
Prabhudas Lilladher
15-Nov-17
Price @ Call: 526.15
Target: 359
REDUCE
Motilal Oswal
15-Nov-17
Price @ Call: 526.15
Target: 610
BUY
Sharekhan
16-Oct-17
Price @ Call: 534.7
Target: 575
HOLD
ICICIdirect.com
12-Oct-17
Price @ Call: 525.8
Target: 585
ADD
Geojit Financial Services
12-Sep-17
Price @ Call: 468.65
Target: 413
SELL
Shahina Mukadam
30-Aug-17
Price @ Call: 481.15
Target: 550
BUY
Angel Broking
22-Aug-17
Price @ Call: 460.55
Target: 558
BUY
KRChoksey
14-Aug-17
Price @ Call: 451.3
Target: 550
BUY
Edelweiss
14-Aug-17
Price @ Call: 451.3
Target: 525
BUY
Motilal Oswal
14-Jun-17
Price @ Call: 539
Target: 650
BUY
Prabhudas Lilladher
13-Jun-17
Price @ Call: 542.18
Target: 501
REDUCE
Reliance Securities
30-May-17
Price @ Call: 507
Target: 548
HOLD
Sharekhan
29-May-17
Price @ Call: 568.55
Target: 510
REDUCE
Centrum
15-Feb-17
Price @ Call: 649
Target: 810
BUY
ICICIdirect.com
15-Feb-17
Price @ Call: 649
Target: 765
BUY
Khambatta Securities
15-Feb-17
Price @ Call: 630
Target: 832
BUY
HDFC Securities
15-Feb-17
Price @ Call: 649
Target: 850
BUY
Edelweiss
14-Feb-17
Price @ Call: 649
Target: 860
BUY
Religare
14-Feb-17
Price @ Call: 649.3
Target: 875
BUY
SUNPHARMA Share Price Target - Broker Reports - 2016
Religare
14-Dec-16
Price @ Call: 683.05
Target: 875
BUY
Motilal Oswal
24-Nov-16
Price @ Call: 693.2
Target: 925
BUY
Religare
24-Nov-16
Price @ Call: 682.2
Target: 875
BUY
Angel Broking
17-Nov-16
Price @ Call: 683
Target: 847
BUY
KRChoksey
11-Nov-16
Price @ Call: 667
Target: 940
BUY
Religare
11-Nov-16
Price @ Call: 699.05
Target: 875
BUY
Axis Direct
11-Nov-16
Price @ Call: 667
Target: 720
HOLD
Prabhudas Lilladher
10-Nov-16
Price @ Call: 667
Target: 873
ACCUMULATE
Sharekhan
12-Sep-16
Price @ Call: 793
Target: 945
BUY
Reliance Securities
17-Aug-16
Price @ Call: 785.95
Target: 880
BUY
Prabhudas Lilladher
17-Jun-16
Price @ Call: 742.36
Target: 873
ACCUMULATE
Geojit Financial Services
7-Jun-16
Price @ Call: 726
Target: 823
BUY
Prabhudas Lilladher
3-Jun-16
Price @ Call: 737.61
Target: 873
ACCUMULATE
Khambatta Securities
1-Jun-16
Price @ Call: 755
Target: 881
BUY
Prabhudas Lilladher
31-May-16
Price @ Call: 763
Target: 873
ACCUMULATE
Edelweiss
31-May-16
Price @ Call: 763
Target: 910
BUY
Religare
5-May-16
Price @ Call: 815.9
Target: 940
HOLD
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SUNPHARMA Peer Stocks - Share Price Targets
SOURCE: Data from D'Market via Quandl. Intraday data delayed 15 minutes.
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