Sun Pharma

#1
Sun Pharma is getting beaten down due to poor results. I have been holding this for more than three years and its come to near my buy price. Though I know the quality and fundamentals of Sun Pharma are good, I am not sure on the medium to long term prospects of it.

Alchemist, any views on this company from a 6-18 months time frame? I can buy more if it's going to do well and not fall further. Otherwise, I can exit and look for an alternative.
 

Alchemist

Administrator
Staff member
#2
Sun Pharma is highly dependent on its generics business, which is losing growth momentum.

Like technology, the pharmaceutical market is also changing fast and not everyone is ready to embrace the change. Analysts estimate that the generic growth opportunity will reduce to 1 percent by 2020 compared to 15 percent CAGR over 2010-15.
Sun Pharma & Tech Mahindra: Should you be catching these falling knives? - Moneycontrol.com

The company is trying to reduce its dependency on generics, but how well it will be able to do that is anybody's guess.

517-520 was a crucial support but is now broken. If the stock can close above 520, we can see 550-560 in a technical bounce back.

I think levels of 410-430, if reached, would be a better level to average. That will be 14-15 times next year's earnings.

It's a hold for now.
 
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