Goldman Sachs has reiterated its Sell rating on Sun Pharma with a target price of ₹1,600, suggesting a potential downside of 16% from the current market price of ₹1,902. Sun Pharma reported Q2 results above expectations, with sales and EBITDA growing 9% and 24% year-over-year, respectively, driven by strong performance in the India and US markets. Global specialty sales reached $286 million, marking an 8% increase quarter-over-quarter and a 19% rise year-over-year.
The EBITDA margin was higher than anticipated at approximately 29.6%, attributed to better gross margins (98 basis points above Goldman’s estimates), a favorable product mix, lower R&D expenses (102 basis points below estimates), and notable forex gains (96 basis points). Sun Pharma has guided for high single-digit topline growth for FY25, positioning the year as one of consolidation and strategic investments in its specialty business.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Investors are advised to perform their due diligence before making investment decisions.
