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MOSL: Morning India (15/June/17)-1. Sun Pharma (Opportunity in Adversity)-2. Fund Folio (Equity AUM up for sixth successive month)-3. Manpasand Beverages

​MOrning India (15/June/17): 1. Sun Pharma (Opportunity in Adversity); 2. Fund Folio (Equity AUM up for sixth successive month); 3. Manpasand Beverages; 4. Oil & Gas

Today’s top research idea

Sun Pharma: Opportunity in Adversity

• Earnings recovery in Sun Pharma is expected from FY19 onwards (EPS growth of ~20% in FY19E), led by Halol resolution, launch of two specialty business products (although meaningful contribution may come only after 12-18 months of launch) and base business price erosion of f <10% (v/s double-digit price erosion in FY17 and FY18E).
  
• SUNP expects approval of multiple sclerosis drug Tildrakuzumab by FY19- beginning (filling done in May-17), which is ~USD5b market in the US, and is expected to reach USD8-8.5b over next 6-7 years.
  
• Company owns exclusive, worldwide rights to Secieraâ„¢ (dry eye product), and is developing it to commercialize for global markets, including the US, Europe, Japan and several EM.
  
• Specialty business operating breakeven is expected in FY20E.
  

Piping hot news

Cheaper food drives wholesale inflation to 5-month low in May

• ​With food items such as vegetables becoming cheaper, wholesale price index (WPI) based inflation eased to a five-month low of 2.17 per cent in May. It was much higher at 3.85 per cent in April and had contracted by 0.9 per cent in May last year.