Author: Nishtha Mehrotra | EQMint
Synopsis:
- Sun Pharma reported revenue and EBITDA above analyst estimates, supported by strong India and emerging-market performance.
- Citi cut FY27-29 EBITDA estimates by 8-12%, while HSBC reduced EPS forecasts by 2.5-3.1%.
- Weakness in Ilumya sales remains a concern, with Leqvio, Unloxcyt and European launches emerging as potential growth drivers.
Sun Pharmaceutical Industries reported a stronger-than-expected quarterly performance, driven by robust sales in India and emerging markets. However, weakness in its specialty medicines portfolio has kept brokerages cautious about its medium-term outlook.
Goldman Sachs described the results as broadly in line with expectations, highlighting slower growth in innovative medicines due to declining Ilumya sales and slightly weaker margins.
Citi maintained its stock rating but reduced its FY27-29 EBITDA estimates by 8-12%, citing slower market growth. HSBC also lowered its FY27-29 EPS estimates by 2.5-3.1%.
Both brokerages identified a potential recovery in Ilumya and new product launches as important growth catalysts. Leqvio, Unloxcyt and upcoming European market launches are among the developments investors will be watching.
Sun Pharma shares gained approximately 1.3% in early pre-open trade on November 2.
The key question for investors is whether newer specialty medicines can offset Ilumya’s weakness and sustain the company’s future growth.
Disclaimer: This article is for information purposes only and is not investment advice.
For more such information, visit EQMint
Join our WhatsApp channel for timely updates: Whatsapp.
