After having toughed out for more than three years in the US, Sun Pharmaceutical’s flagship product Ilumya is continuously ramping-up sales. While Ilumya and Winlevi contribution can drive growth in Specialty sales over the medium term, SUNP has four products under clinical trials, stated Motilal Oswal Institutional Equities.

The risk to Cequa's sales persist, with scope for genericization of peer product Restasis. SUNP has been able to counter the price erosion in the base business with new product launches and better supply chain management, it said.

Motilal Oswal Institutional Equities has maintained 'Buy' on Sun Pharmaceutical with target price of Rs 960.

While FY15-20 sale CAGR in DF has been muted at 7.7%, SUNP has upped its effort with better performance (14.3% YoY) over the past one year. "Overall, we expect 16% earnings CAGR over FY21-23E, led by a 15%/13% revenue growth in the US/DF. We value SUNP on a 25x 12-months forward earnings basis to arrive at our TP of Rs 960. We maintain our Buy rating," the broking firm added. 

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