EUR 120.00 For Business Accounts Only

MOSL: Morning India (8/November/19): 1. Sun Pharma (In-line; ramp-up of specialty portfolio – WIP); 2. BPCL; 3. Power Grid Corp; 4. HPCL; 5. UPL; 6. Tata Steel; 7. GSK Consumer; 8. United Breweries

MOrning India (8/November/19): 1. Sun Pharma (In-line; ramp-up of specialty portfolio – WIP); 2. BPCL; 3. Power Grid Corp; 4. HPCL; 5. UPL; 6. Tata Steel; 7. GSK Consumer; 8. United Breweries

 

Today’s top research idea

Sun Pharma: In-line; ramp-up of specialty portfolio – WIP

• We believe that SUNP is set for gradual revival in return ratios after forming trough in FY19.
• Robust outperformance in domestic formulation segment, limited price erosion in US base business, new ANDA approvals and superior execution traction in specialty portfolio and ROW/Emerging market would not only drive revenue growth but also enhance profitability going forward.
• Further SUNP is also building foundation to benefit from business opportunities in China, wherein, regulatory policies have been eased to some extent by the government.
• Overall, we expect 28% CAGR in EPS over FY19-21 to INR22.
• We value SUNP at 22x 12M forward earnings and arrive at price target of INR515. Reiterate Buy.

Piping hot news

Moody's lowers India's outlook to 'negative' from 'stable' on economic concern

India’s credit ratings outlook was cut to negative from stable by Moody’s Investors Service on concern the government won’t be able to help stunted economic growth. Moody’s cited a growing debt burden and the government’s struggle to narrow the budget deficit. The rating company affirmed the nation’s foreign issuer rating at Baa2, the second-lowest investment grade score. Financial stress, especially in rural areas, and low job creation calls into question how effective the nation’s government is in addressing economic sluggishness, William Foster, vice president of Moody’s Sovereign Risk Group, wrote in a statement.