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Sun Pharmaceutical Industries slipped 3.08% to Rs 1,605.70 after a foreign brokerage downgraded the stock to 'underperform' from 'neutral' and cut its target price to Rs 1,570 from Rs 1,730.
Sun Pharma drops as foreign broker downgrades on valuation, execution risks
26-Aug-2025, 02:11
The broker cited stretched valuations and slower-than-expected traction in speciality drugs. It flagged concerns around psoriasis drug Ilumya's heavy Medicare exposure, potential pricing pressures, and limited earnings visibility despite strong initial uptake. It warned that a 10% price cut in Ilumya could erode Sun Pharma's EPS by 4%.
The broker cited stretched valuations and slower-than-expected traction in speciality drugs. It flagged concerns around psoriasis drug Ilumya's heavy Medicare exposure, potential pricing pressures, and limited earnings visibility despite strong initial uptake. It warned that a 10% price cut in Ilumya could erode Sun Pharma's EPS by 4%.
Sun Pharmaceutical Industries is the largest pharmaceutical company in India and is a leading generic company in the US as well as Global Emerging Markets.
The company's consolidated net profit tumbled 19.64% to Rs 2,278.63 crore despite of 10.07% increase in revenue from operations to Rs 13,786.07 crore in Q1 FY26 over Q1 FY25. The drop in profit was primarily due to a one-time exceptional charge of Rs 818 crore during the quarter.
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