“Sun Pharmaceutical Industries (SPIL) had received an approval for 180 day exclusivity launch for rivastigmine tartrate and has launched the drug in July this year. The drug has annual sales of around USD 130 million (Rs 598 crore). Considering conservative estimations, we believe that this drug would add more than Rs 95 crore, as a one off part in the revenues.
We believe that the erstwhile effect of one off revenues have been more than compensated for looking at the ANDA applications (drugs) getting favorable legal mandates. In addition to this, we are also optimistic about the approval DMF & CEP dossiers filed by SPIL. We feel that SPIL would easily manage to achieve the guided revenue growth of 18-20% for the entire FY11. We would not revise our estimates at this point of time and strongly maintain a “BUY” rating on the stock with a target price of Rs 2070, keeping in mind a medium-term horizon,” says Networth Capital research report.
We believe that the erstwhile effect of one off revenues have been more than compensated for looking at the ANDA applications (drugs) getting favorable legal mandates. In addition to this, we are also optimistic about the approval DMF & CEP dossiers filed by SPIL. We feel that SPIL would easily manage to achieve the guided revenue growth of 18-20% for the entire FY11. We would not revise our estimates at this point of time and strongly maintain a “BUY” rating on the stock with a target price of Rs 2070, keeping in mind a medium-term horizon,” says Networth Capital research report.
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