Sun Pharmaceutical Industries, an international, integrated, speciality pharmaceutical company, announced that its 1QFY22 earnings were well above our expectation, led by over 25% growth in all segments, except API. Steady traction in the Specialty portfolio, recovery in the core portfolio of Branded Generics, new launches in US Generics, and partial benefit of COVID-related products led to strong growth in 1QFY22 earnings.

Commenting on the investment rationale, Motilal Oswal Institutional Equities said, "We remain positive on Sun Pharmaceutical on the back of: a) its strategy of NCE-led brand building in developed markets, b) industry leading market share in the Branded Generics market of DF, EM, and RoW, c) its Complex Generics pipeline and improving operating leverage. We value SUNP at 25x 12-months forward earnings to arrive at our TP of Rs 900. We maintain our Buy rating."

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