Shares of Sun Pharmaceutical Industries Ltd., India’s largest drugmaker, opened with gains of as much as 3% on Saturday, February 1, and are the top gainers on the Nifty 50 index after the company reported its December quarter results.

Sun Pharma’s US formulation sales was at $474 million during the quarter. The company’s sales rose 10.5% from last year. Adjusted for a forex gain, the company’s EBITDA stood at ₹4,192 crore, a growth of 25% from last year’s figure. The base quarter had a forex loss of ₹124 crore. EBITDA margin expanded by over 300 basis points to 30.6%.

Brokerage firm Emkay Global has retained its ‘Buy’ rating on Sun Pharmaceutical, with a price target of ₹2,400 per share. The price target implies a potential upside of 30% from current levels.

“Even as domestic and global specialty sales were marginally ahead of Street estimates, the weakness in US generics, and the likely sequential decline in specialty sales in Q4 were marginal negatives,” the brokerage said.

Lower US generic sales assumptions drive a marginal cut to FY26 and FY27 earnings per share estimates. However, Sun’s branded (70% share in Q3 sales) portfolio-driven margin expansion story remains intact, it said.

Jefferies has a ‘Buy’ rating on Sun Pharma, with a price target of Rs 2,265, citing better Q3 even after adjusting for $45 million milestone income.

India delivered 14% year-on-year growth led by volumes. US sales declined 8% quarter-on-quarter due to lower sales of generic drugs global specialty sales maintained momentum.

Jefferies believes the company is well-placed to conclude more deals in specialty with strong infra in place.

HSBC has a ‘Buy’ recommendation on Sun Pharma, with a price target of ₹2,280 per share.

The foreign brokerage wrote in its note that the outlook for specialty product sales remains healthy. The next update on Leqselvi (Alopecia drug) litigation will be in April 2025.

Nuvama Institutional Equties wrote that Sun Pharma continues to face delays in clinical studies, resulting in lower R&D spends, thereby improving margins. However, the brokerage argued that R&D spend is important for long-term growth visibility.

While the specialty business is witnessing healthy performance currently, delay in Leqselvi remains a concern, it said while retaining a ‘Hold’ rating and a target of ₹1,830.

Out of the 41 analysts that have coverage on Sun Pharma, 30 of them have a ‘Buy’ rating on the stock. Seven of them have a ‘Hold’ rating, while only four of them have a ‘Sell’ recommendation.

Shares of Sun Pharmaceutical Industries Ltd. are trading 2.34% higher at ₹1783.90 and remain the top gainers on the Nifty 50 index.