Sun Pharmaceutical Industries has received optimistic commentary from both Morgan Stanley and HSBC following its recent updates, with both brokerages maintaining positive ratings and expecting further upside driven by its diversified model and strong domestic franchise.
Morgan Stanley has reiterated an overweight rating on Sun Pharma, assigning a target price of ₹1,948 per share. The brokerage highlighted the company’s diversified model as a key driver of steady growth, supported by a robust India franchise and strong free cash flow generation. It also noted that Sun Pharma has guided for an effective tax rate of 25% for FY26, indicating clarity on fiscal planning.
HSBC has also maintained a buy call with a slightly lower target price of ₹1,850 per share. According to the firm, growth in India and scaling up of innovative products will help offset cost pressures, especially as the company sees a healthy operational pickup despite the anticipated impact from taxes.
The two brokerages appear aligned in their confidence over Sun Pharma’s ability to navigate input cost and tax headwinds through continued expansion in key segments and product innovation.
Disclaimer: This article is based on stock research reports from Morgan Stanley and HSBC. The views and target prices mentioned are theirs. This does not constitute a recommendation to buy or sell any stock. Please consult a registered financial advisor before making any investment decisions.
