While a bull case scenario expects the stock to go up by as high as 29%, a bear case scenario expects a downside of up to 15% from current levels.
Here’s a look at what brokerages have to say on Sun Pharma’s results.
Citi
Brokerage firm Citi has a “buy” rating on Sun Pharma with a price target of ₹2,220 per share, indicating an upside potential of 28.7% from Thursday’s closing price.
It said the pharma company’s fourth quarter was in-line with estimates.
Strength in India and emerging markets offset Sun Pharma’s weakness in generics, it said.
The softness in specialty sequentially was because of channel filling / milestone, which was called out in the third quarter, Citi said. Sun Pharma’s commentary was positive on impact of manufacturing pricing, lifting an overhang, it added.
However, the management’s mid-high single-digit revenue growth guidance for the financial year 2026 reflects regulatory and geopolitical uncertainties, Citi said. The company’s research and development guidance was also modest as some trials were over.
Its guidance of $100 million launch-related investments on Unloxyct/Leqselvi suggest the company is now going full throttle to build its specialty franchise but also results in around 6% cut in its estimated FY26 earnings-per-share, Citi said.
Nomura
The brokerage has a “neutral” rating on Sun Pharma with a price target of ₹1,970 per share, an upside of 14.2% from its last closing price.
Nomura said Sun Pharma’s fourth quarter was below estimates because of lower US revenues. Its FY26 sales growth guidance too was below estimates, with the company suggesting a rise in investments, it added.
The company’s guidance for FY26 suggests that overhead spends shall rise ahead of revenue growth, adversely impacting earnings before interest, taxes, depreciation and amortisation (EBITDA) margin in the near-term, Nomura said.
Sun Pharma is expecting the FY26 revenue growth at mid-to-high single-digit, which is currently below the 10% estimate, the brokerage added.
HSBC
HSBC has a “buy” rating on the stock but has cut its target price to ₹1,870, which is 8.4% away from its last closing price.
It said Sun Pharma’s fourth quarter earnings were a miss.
HSBC mentioned that the pharma company has guided for additional cost of $100 million in FY26 for specialty launches of Leqselvi and Unloxcyt.
The brokerage expects Sun Pharma’s near-term cost build-up to hit its EBITDA margin, though spend is critical to support specialty portfolio growth.
The launch of Leqselvi in the second quarter of FY26 and the Chekpoint deal are key factors going ahead, HSBC said.
Goldman Sachs
The brokerage has a “sell” rating on Sun Pharma with a target price of ₹1,475 per share, a downside of 14.5% from its previous closing price.
Goldman Sachs said the pharma company’s fourth quarter was broadly in-line with estimates as adjusted sales and EBITDA grew 8% and 22% from the previous year, respectively. The same was driven by robust growth in India, partially offset by a weaker US market.
Its global specialty sales stood at $295 million, up 8.6% from the previous year.
Sun Pharma’s adjusted EBITDA margin of 28.7% was higher than Goldman Sachs’ estimates, on account of lower research and development and other costs.
Sun Pharma had guided for FY26 topline growth to be in the mid to high single digits, given the uncertain macroeconomic, forex moves and policy environments, the brokerage added.
Sun Pharma Q4 performance
Sun Pharma’s management, during its fourth quarter, said that the company is looking to invest $100 million in terms of additional costs on products. The company is also increasing its R&D spends to 6% to 8% of its sales, raising concerns on its Operating Profits.
Of the 42 analysts that have coverage on the stock, 34 have a “buy” rating, five have a “hold” rating and three have a “sell” rating.
Sun Pharma shares declined 4.5% ₹1,639.90 apiece just after market open on Friday, May 23. It stock has declined 12.66% this year, so far.
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