Scripscan:Sun Pharmaceuticals Industries Ltd
cmp:490
Code:524715
Story:Sun Pharmaceutical Industries Limited manufactures and sells pharmaceutical formulations and active pharmaceutical ingredients (APIs) primarily in India and the United States. The company offers formulations in various therapeutic areas, such as cardiology, psychiatry, neurology, gastroenterology, and diabetology. It also provides APIs comprising warfarin, carbamazepine, etodolac, and clorazepate, as well as anticancers, steroids, peptides and controlled substances.Sun Pharma is one of the largest and fastest growing Indian pharmaceutical companies. Management has guided for 28–30% top-line growth for FY2012. Growth reported during the year can also be attributed to the consolidation of Taro’s financials. Management’s guidance for FY2012E includes all growth aspects from Taro as well.I expect Sun Pharma’s net sales to post a 27.3% CAGR to Rs 9,272cr and EPS to register a 21.4% CAGR to Rs 25.9 over FY2011–13E.Buy the stock with a target price of Rs 570 to be achieved in the next 6 months.
