Sun Pharma Q2 Results Review - India Branded Generic Growth Surprises; Upgrade To 'Buy': Systematix

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Systematix Research Report.Sun Pharmaceutical Industries Ltd.'s Q2 FY25 revenue was in line, but Ebitda and net income came in below our estimates owing to higher-than-expected operational expenses (up 11% QoQ). Higher other expenses were attributable to an increase in selling and Distribution expense. India branded formulation growth remained strong (11% YoY) and largely led by volume growth ( 5% versus 0.7% IPM volume growth) research and development expenditure stood at 6% of sales during the quarter as against the guided range of 8-10% due to a delay in the start of some clinical studies. R&D spend is expected to increase in subsequent quarters and will be in the 7-8% range for the full year FY25. Specialty sales during the quarter stood at $286mn (up 19.2% YoY). Novel specialty asset – Leqselvi (Deuruxolitinb) which was supposed to aid specialty ramp up during the year, is awaiting court judgement for the launch. Overall US formulation sales during the quarter increased 22% YoY and 11% QoQ with gRevlimid (Lenalidomide) sales being higher QoQ alongside a healthy base business growth (gPentasa and gCiprodex). We tweak our estimates on Sun Pharma and roll over our price target to September FY27E EPS. We also revise our target valuation multiple to 35 times to arrive at a target price of Rs 2,198. Our revised target multiple is to reflect a growing R&D pipeline of late-stage novel assets by FY27. We upgrade Sun Pharma to Buy from Hold. .Click on the attachment to read the full report:.Ambuja Cements Q2 Review - Beats Estimates; Focus Remains On Cost Optimisation; Maintain Buy: Motilal Oswal.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Sun Pharma Q2 Results Review - India Branded Generic Growth Surprises; Upgrade To 'Buy': Systematix

India branded generics business recorded sales of Rs 42.7 billion, up 11% YoY and 2.9% QoQ, adds the brokerage.

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Sun Pharma Q2 Results Review - India Branded Generic Growth Surprises; Upgrade To 'Buy': Systematix

India branded generics business recorded sales of Rs 42.7 billion, up 11% YoY and 2.9% QoQ, adds the brokerage.

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