Sun Pharma | Sun Pharma Share Price: Sun Pharma’s Upgrade Cycle Will Continue: Cyndrella Carvalho

“In Indian business, they are definitely the leaders. And with the American specialty working as it has been, it becomes a growth engine for the company going forward,” said Cyndrella Carvalho, Vice-president – Pharmaceutical research analyst, Brokerage

At odd Rs 815, how do you see the valuation of the stock versus the type of delivery they’ve made?
We will see more upgrades coming with this quarterly number and in terms of performance India and the US would both be driving performance this quarter. In terms of numbers, these numbers are at the top of the line as well as in terms of EBITDA, they are slightly ahead of our expectations. But these are very good quarterly figures.

The upgrade cycle will continue and I see very good performance being delivered. We had around Rs 1800 odd PAT estimates while they delivered around Rs 2000 and up and that is definitely a beat on our numbers.

In the future, we will have to look at Sun Pharma in a different way. What happens to the specialty, what happens to the core business, what happens to Indian affairs because each of them has become important?
Yes, and it has always been like that and now the specialty, it is precisely for us a zone apart whereas they are the leaders in India. Growth has therefore not been a concern for us. Growth has been fabulous for their domestic business and in particular this quarter anti-infectious recovery is very strong for peers and the Ranbaxy part of the portfolio is doing well, supporting growth for this quarter despite a chronic slightly weak segment.

In Indian affairs, they are definitely the leaders. And with the American specialty working the way it has been, it becomes a different segment for them and a growth engine for the company going forward.

These things are very important and I think this is how it’s going to be, and MS performance should also be better than expected, considering all the other peers where MS performed better than expected. It’s an overall super pack performance.

What are the few things you would look at?
Definitely a specialty, how it goes and of course what are the prospects for the new Winlevi which is now available. If we can get a sense of what kind of peak income we can look at as well as the trajectory of the new Ilumya and how fast it can grow.

The American specialty will remain on the agenda and with that the cost of the specialty also enters the base. So we will see how the cost parameters will evolve and to what extent the additional EBITDA delta that we can see on the EBITDA level from better sales delivery in the US specialty segment would result in a much higher delta for EBITDA.

These are the few metrics we will be looking at and in Indian affairs we will certainly be looking at a significant change given the weak base we have thanks to the Covid pandemic in the first quarter.

Source link

About Margie Peters

Check Also

Manchester U. to expand specialty pharmaceutical programs

(photo courtesy University of Manchester) The University of Manchester has partnered with San Diego-based Agena …

Leave a Reply

Your email address will not be published. Required fields are marked *