Sun Pharma stock: Nomura trims target as specialty growth slows
Published on 11/13/2026 at 02:42 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWSSpecialty Growth Faces Near-Term Pressure
- Nomura retained its Buy rating while cutting its Sun Pharma target to INR 2,260 from INR 2,400.
- India revenue grew 17.3 percent in Q2FY27, while US revenue was flat year on year.
- The proposed Organon acquisition remains expected to close in the fourth quarter of FY27.
Nomura kept its Buy rating on Sun Pharmaceutical Industries but cut its target price to INR 2,260 from INR 2,400 on November 2, citing slower specialty growth despite strong Indian demand. The brokerage expects the specialty business to improve in fiscal years 2028 and 2029, supported by Ilumya and new launches, according to Moneycontrol.
Sun Pharma stock traded at INR 1,885 on the NSE at 10:59 CET on Thursday, November 12. The quote is the latest available trading price for the Indian listing; no Xetra comparison is included.
India Growth Offsets Specialty Caution
Sun Pharma's Q2FY27 revenue and EBITDA exceeded Nomura's estimates by 1 percent and 8 percent, respectively. India revenue increased 17.3 percent year on year, with volume growth of about 6 percent against 1.6 percent for the Indian pharmaceutical market.
US sales reached USD 455 million, supported by Levulan and five generic launches, but remained flat year on year as lenalidomide competition and slower specialty growth weighed on performance. Global innovative medicines sales rose 6.9 percent to USD 356 million, while management attributed the specialty slowdown in part to Ilumya in the United States.
Organon Deal Remains A Key Catalyst
Nomura remains constructive on Sun Pharma's proposed acquisition of Organon and expects the transaction to be completed in the fourth quarter of FY27. The brokerage estimates USD 500 million in potential synergies, above the company's guided USD 350 million, but its target-price reduction reflects a lower valuation multiple and higher cost of capital.
Global Specialty Generic Platform
Sun Pharma is a global specialty generic company headquartered in India, with medicines spanning branded generics, specialty products, complex drugs, over-the-counter products, active pharmaceutical ingredients and intermediates. The company sells across more than 100 countries and operates manufacturing facilities in multiple markets. Its broad Indian branded-generic base and specialty focus place it among major Indian pharmaceutical groups alongside Dr. Reddy's Laboratories and Lupin, while its international footprint gives it a wider geographic platform than many regional drugmakers.
Sun Pharmaceutical Industries At A Glance
- Company: Sun Pharmaceutical Industries Limited
- ISIN: INE044A01036
- Listing: NSE, India
- Price: INR 1,885 on November 12, 2026, at 10:59 CET
- Business: Specialty medicines, generics, branded generics, complex products and APIs
Indian equities are tracked through Current market reports.
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