BSE Code: | NSE Code: | ISIN: | Sector:
Research Report Detail
|Report Date||Call||Price@Call||Target Price
|Current Status||Time Horizon|
|Target Hit|| Long (1Y)
Nomura maintains neutral on Sun Pharmaceutical
correction in the US generics business has been much stronger than our
expectations. Taro revenues declined 18% q-q in 1QFY18F and sales from
the Halol site declined 50% over the past 12 months as per IMS data. We
expect revival in Halol revenues in the near term and expect approval
momentum to pick up post resolution of the Halol warning letter by end
FY18F. However, there is limited visibility on potential "high value"
generic launches. The stock is trading at 20-30% premium on FY19F
estimates. We think revival in earnings is in the price.