Sun Pharmaceutical is in the spotlight. Two key brokerages have released very divergent recommendation on the Sun Pharma share price. While one is bullish on its domestic and specialty businesses, the other flags concerns about flat productivity and future regulatory and competitive challenges.
Let’s take a look at what the brokerages have to say about this pharma sector stock and what it means for investors
Jefferies on Sun Pharma: Sees potential upside
The brokerage firm Jefferies has given a ‘Buy’ rating with a target price of Rs 2,070. This indicates a potential upside of 26% from current levels.
According to the brokerage report, Sun Pharma is well-positioned for growth, driven by volume expansion and differentiated products in India, with GLP-1 seen as a key opportunity.
“Sun has been under-indexed on pricing in India but has outperformed the market on volume and new products for past few years,” Jefferies noted.
The report added that Sun’s specialty business has been a major contributor to gross margin improvement, tracking well toward internal RoIC targets, and will continue to focus on assets in derma, onco-derma, and ophthalmology.
Jefferies also highlighted the company’s plans to de-risk manufacturing by setting up a new India plant. “Incrementally, Sun aims to bring differentiated/innovation-based product in India to maintain its strong market leadership and volume outperformance,” the brokerage report noted.
Nuvama on Sun Pharma: Takes a cautious stance
On the other hand, Nuvama has issued a hold rating with a target price of Rs 1,830.
According to the brokerage report, Sun Pharma will continue focusing on domestic formulations and innovative medicines, with management planning to expand its field force and launch GLP-1 products next year.
“The initial impression of Leqselvi’s US launch seems encouraging, but it will take a couple of years to stabilise,” Nuvama noted, while adding that Ilumya is expected to perform well despite upcoming competition.
The report further explained that Sun’s capital allocation will continue prioritising domestic operations and innovative medicines, with selective inorganic expansion for its innovative portfolio.
Nuvama expects field force productivity to remain flattish until the pace of expansion slows. “We estimate Sun’s revenue/PAT shall grow at 9%/8% CAGR over FY25–27E with margins improving by 100bp, but the tax rate inching up going forward; retain ‘HOLD’ with an unchanged target price of Rs 1,830 (31x FY27E EPS),” the brokerage said.
Sun Pharma share performance
The share price of Sun Pharma has seen a marginal decline of nearly 1% over the past month. On a yearly basis, the stock is down 13%, and so far in 2025, it has fallen 14%.