Sun Pharma (SUNP) conducted conference call to address issues, which were raised by some media reports, related to corporate governance and whistleblower against the company. The management responded to issues to some extent, while whistleblower related issues remained unaddressed as company has not yet received queries from SEBI. Though the key drivers for growth in US and domestic formulation market remain in place, we reduce PE multiple to 20x (from 27x) to factor ongoing issues related to corporate governance and reduce the price target to `560 on 12M forward earnings. We maintain 'buy' on the stock. We expect stock to remain under pressure till corporate governance issues are sorted out. The audit firm audits some of SUNPs small subsidiaries, which are non-material for the company. Concern over insider trading case related to Ranbaxy transaction: SUNP has not been involved in any such case related to Ranbaxy deal. However, there was some minor technical issues regarding closure of trading window due to holiday. Merger meeting was held on Sunday and lawyer advised not to apply for closure of trading window as markets are always close on holiday. SEBI ruled that application should have been made and hence case was settled by paying penalty. Concern over Dilip Sanghvi buying shares of NATCO Pharma: Sanghvi believed that the company has potential to grow and hence made the investment. He continues to hold the investment till date. Transactions with AML has been in existence for 20 years. SUNP disclosed AML as RPT due to consolidation of AML\u2019s share-holding in FY18. Financials of AML are available and the firm does not enjoy significant profit. Relationship on arm length basis: Company is open to change the transaction with AML.