Sun Pharmaceuticals - Stock discounting blue-sky; reiterate SELL - Kotak

We believe the Sun Pharma stock is discounting a blue-sky scenario on the back of limited near-term earnings risk and sustained positive news flow. We believe the stock price is factoring the following - (1) building a case for perpetual price increase in Taro, (2) discounting Doxil earnings similar to a branded drug and (3) optimism on future acquisitions to resolve any potential growth challenges.

Maintain SELL with TP at Rs. 485 (from Rs. 450 earlier).

Source : Equity Bulls

Keywords