Goldman Sachs has retained its ‘Sell’ rating on Sun Pharma, keeping the target price unchanged at ₹1,475, despite a solid Q4FY25 operational performance. The brokerage remains cautious on valuation and macro uncertainty, especially as FY26 guidance implies slower momentum.
Sun Pharma posted adjusted sales and EBITDA growth of 8% and 22% YoY, respectively, with EBITDA margins at 28.7% — above Goldman’s estimates due to lower-than-expected R&D and overhead costs. However, the reported net profit declined to ₹2,153.9 crore, due to a ₹361.6 crore exceptional loss.
The company’s global specialty sales came in at $295 million, up 8.6% YoY. But Goldman noted that the weaker US performance and absence of a major pipeline catalyst continue to weigh on sentiment.
Management guided for FY26 topline growth in the mid-to-high single digits, citing headwinds from forex volatility and an uncertain regulatory environment. While the company’s specialty strategy has long-term merit, Goldman believes valuation remains stretched, especially in the absence of a strong earnings reacceleration.
Disclaimer: This article is based on the brokerage report by Goldman Sachs. It does not constitute investment advice.
