2QFY2016 Result Update | Pharmaceutical
November 17, 2015
Sun Pharma
BUY
CMP
`742
Performance Highlights
Target Price
`950
(` cr)
2QFY2016 1QFY2016
% chg qoq 2QFY2015
% chg yoy
Investment Period
12 months
Net sales
6,803
6,526
4.3
7,979
(14.7)
Other income
226
341
(33.8)
29
674.5
Gross profit
5,245
4,805
9.2
6,162
(14.9)
Stock Info
Operating profit
1,899
1,614
17.7
3,006
(36.8)
Sector
Pharmaceutical
Adj. Net profit
1,107
993
11.5
2,050
(46.0)
Market Cap (` cr)
178,514
Source: Company, Angel Research
Net Debt (` cr)
(7,887)
For 2QFY2016, Sun Pharmaceuticals Industries (Sun Pharma) posted results
Beta
0.8
marginally lower than our expectations. Sales for the quarter, at `6,803cr (V/s
52 Week High / Low
1201/725
`6,600cr estimated) dipped 15% yoy. On the operating front, the company
Avg. Daily Volume
342,380
posted an OPM of 27.9% V/s 38.0% in 2QFY2015 and V/s our expectation of
25.4%. The company had benefitted significantly in 2QFY2015 from the 180-
Face Value (`)
1
day exclusivity on Valsartan tablets in the US, which resulted in a higher base for
BSE Sensex
25,611
the quarter under review. Thus, the net profit came in at `1,107cr V/s `1,145cr
Nifty
7,762
expected and V/s `2,051cr in 2QFY2015, a yoy dip of 46.0%. Other income
Reuters Code
SUN.BO
during the quarter came in at `225.6cr V/s `29.1cr in 2QFY2015. However, we
Bloomberg Code
[email protected]
are currently maintaining our target price of `950.
Results better than expected on the OPM front: For 2QFY2016, Sun Pharma
posted results marginally lower than our expectations. Sales for the quarter, at
Shareholding Pattern (%)
`6,803cr (V/s
`6,600cr estimated) dipped
15% yoy. Sun posted results
Promoters
54.7
marginally lower than expected. For 2QFY2016, the company posted sales of
MF / Banks / Indian Fls
10.8
`6,803cr (V/s `6,600cr estimated), a dip of 15% yoy. Amongst the key markets-
FII / NRIs / OCBs
27.8
India (`1,819cr) posted a growth of only 1%, US (US$510mn) posted a de-
Indian Public / Others
6.7
growth of 28% yoy, Emerging markets (US$140mn) were down by 16% yoy and
ROW(US$76mn) was down 30% yoy. On the operating front, the company
posted an OPM of 27.9% V/s 38.0% in 2QFY2015. This was against our
Abs. (%)
3m 1yr
3yr
expectations of 25.4%. The company had benefitted significantly in 2QFY2015
from the 180-day exclusivity on Valsartan tablets in the US resulting in a higher
Sensex
(7.0)
(8.3)
37.6
base. Thus, the net profit came in at `1,107cr V/s `1,145cr expected and V/s
Sun Pharma
(15.6)
(18.4)
115.2
`2,051cr in 2QFY2015, a yoy dip of 46.0%. Other income during the quarter
came in at `225.6cr V/s `29.1cr in 2QFY2015.
3-year price chart
Outlook and valuation: Sun Pharma is one of the largest and fastest growing
1 ,20 0
Indian pharmaceutical companies. We expect its net sales to post a 9.3% CAGR
1 ,10 0
1 ,00 0
(including Ranbaxy Laboratories) to `32,610cr and EPS to post an 8.4% CAGR to
900
800
`26.9 over FY2015-17E. We recommend a Buy on the stock.
700
600
500
Key financials (Consolidated)
400
Y/E March (` cr)
FY2014
FY2015
FY2016E
FY2017E
300
200
Net sales
16,004
27,287
28,163
32,610
2
2
2
3
3
3
3
4
4
4
4
5
5
5
5
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
y
g
v
b
y
g
v
b
y
g
v
b
y
g
v
% chg
42.3
70.6
3.2
15.8
a
u
o
e
a
u
o
e
a
u
o
e
a
u
o
M
A
N
F
M
A
N
F
M
A
N
F
M
A
N
Adj. Net profit
5,273
4,743
4,197
6,483
Source: Company, Angel Research
% chg
52.6
(10.0)
(11.5)
54.5
EPS (`)
25.5
22.9
17.4
26.9
EBITDA margin (%)
43.3
28.6
25.8
30.7
P/E (x)
29.1
32.4
42.6
27.6
RoE (%)
32.3
21.1
13.0
16.6
RoCE (%)
32.0
21.1
12.7
15.8
P/BV (x)
8.3
5.8
4.0
3.5
Sarabjit Kour Nangra
EV/Sales (x)
9.3
5.5
5.8
4.8
+91 22 39357600 Ext: 6806
EV/EBITDA (x)
21.4
19.2
22.5
15.6
[email protected]
Source: Company, Angel Research; Note: CMP as of November 13, 2015
Please refer to important disclosures at the end of this report
1
Sun Pharma | 2QFY2016 Result Update
Exhibit 1: 2QFY2016 performance (Consolidated)
Y/E March (` cr)
2QFY2016
1QFY2016
% chg qoq 2QFY2015
% chg yoy 1HFY2016 1HFY2015
% chg
Net sales
6,803
6,526
4.3
7,979
(14.7)
13,329
14,296
(6.8)
Other income
225.6
340.8
(33.8)
29.1
674.5
566.4
238.9
137.1
Total income
7,029
6,863
2.4
8,008
(12.2)
13,896
14,535
(4.4)
Gross profit
5,245
4,805
9.2
6,162
(14.9)
10,050
10,833
(7.2)
Gross margin (%)
77.1
73.7
77.2
75.4
75.8
Operating profit
1,899
1,614
17.7
3,006
(36.8)
3,514
4,678
(24.9)
Operating margin (%)
27.9
24.8
37.7
26.4
32.7
Interest
148
123
20.7
162
(8.3)
271
311
(12.6)
Depreciation
271
240
12.9
269
0.8
511
505
1.3
Extraordinary item loss/ ( gain)
0
685
0
685
0
PBT
1,705
1,592
7.1
2,604
(34.5)
3,297
4,102
(19.6)
Provision for taxation
335.5
226.8
47.9
279
20.1
562
486
15.8
PAT before extra-ordinary item
1,370
1,365
0.3
2,325
(41.1)
2,735
3,617
(24.4)
Minority interest(MI)
263
200
31.4
274
(4.0)
464
356
30.2
Reported PAT
1,107
993
11.5
2,050
(46.0)
2,271
3,260
(30.3)
Adj. PAT
1,107
479
131.0
2,050
(46.0)
1,586
3,255
(51.3)
Adj. EPS (`)
4.6
4.1
8.5
9.4
13.5
Source: Company, Angel Research
Exhibit 2: 2QFY2016 - Actual V/s Angel estimates
(` cr)
Actual
Estimates
Variance (%)
Net sales
6,803
6,600
3.1
Other income
226
200
12.8
Operating profit
1,899
1,674
13.5
Tax
335
165
103.7
Adj. Net profit
1,107
1,145
(3.4)
Source: Company, Angel Research
Better than expected performance: Sun Pharma posted marginally lower than
expected results for the quarter. Sales came in at
`6,803cr (V/s
`6,600cr
estimated), a dip of 15% yoy. Amongst the key markets- India (`1,819cr) posted a
growth of only 1%, US (US$ 510mn) posted a de-growth of 28% yoy, Emerging
markets (US$140mn) were down by 16% yoy and ROW(US$76mn) was down
30% yoy.
In India, the sales growth was adversely impacted due to conscious efforts to
control overall inventory with the trade. In addition, sales in the acute segment
were lower due to withdrawal of bonus offers and a relatively soft season for the
acute segment. Sales for the quarter in the US were impacted primarily due to
competitive pressure on some products and temporary supply constraints arising
from remediation efforts at the Halol facility. The company had benefitted
significantly in 2QFY2015 from the 180-day exclusivity on Valsartan tablets in the
US, thus resulting in a higher base for 2QFY2016.
In dollar terms, sales in the US came in at US$510mn for the quarter accounting
for 48% of total sales. Sales for the quarter were impacted primarily due to
competitive pressure on some products and temporary supply constraints arising
from remediation efforts at the Halol facility. Taro posted overall sales of
November 17, 2015
2
Sun Pharma | 2QFY2016 Result Update
US$212mn for 2QFY2016, up by 12.0% yoy. Taro’s net profit for 2QFY2016 was
US$133mn.
The company’s sales in emerging markets were at US$140mn for 2QFY2016,
down 16% from the corresponding quarter last year and accounted for 13% of
total sales. The decline is the result of volatile currency movements in certain
emerging markets and a strategic decision of not participating in low margin
businesses.
Formulation sales in Rest of World (ROW) markets excluding US and Emerging
Markets were US$76mn in 2QFY2016, down 30% yoy from the corresponding
quarter last year. A conscious effort of the company at reducing the participation in
non-remunerative businesses has contributed to de-growth in the business. ROW
markets accounted for approximately 7% of revenues for 1QFY2016.
Till September 2015, the company had a total of 445 ANDAs filed with the
USFDA. Currently, ANDAs for 154 products await USFDA approval, including 12
tentative approvals.
Exhibit 3: Sales trend
6000
5000
4000
3000
2000
1000
0
2QFY2015
3QFY2015
4QFY2015
1QFY2016
2QFY2016
Domestic Formulation
Export Formulation, Bulk and others
Source: Company, Angel Research, Note- post 4QFY2015 numbers are of merged entity
OPM at 27.9%; higher than an expected 25.4%: On the operating front, the
company posted an OPM of 27.9% V/s 38.0% in 2QFY2015. This is against our
expectation of 25.4%. The company had benefitted significantly in 2QFY2015
from the 180-day exclusivity on Valsartan tablets in the US resulting in a higher
base for 2QFY2016. The R&D expenditure was 7.0% of sales V/s 5.2% of sales in
2QFY2015.
November 17, 2015
3
Sun Pharma | 2QFY2016 Result Update
Exhibit 4: OPM trend (%)
50.0
45.5
44.7
40.0
30.0
27.9
24.8
24.8
20.0
10.0
2QFY2015
3QFY2015
4QFY2015
1QFY2016
2QFY2016
Source: Company, Angel Research, Note- post 4QFY2015 numbers are of merged entity
Net profit came in lower than expectation: Thus, the net profit came in at `1,107cr
V/s `1,145cr expected and V/s `2,051cr in 2QFY2015, a yoy dip of 46.0%. Other
income during the quarter came in at `225.6cr V/s `29.1cr in 2QFY2015.
Exhibit 5: Adjusted Net profit trend (`cr)
2,000
1,572
1,425
1,500
1,107
993
993
1,000
500
0
2QFY2015
3QFY2015
4QFY2015
1QFY2016
2QFY2016
Source: Company, Angel Research, Note- post 4QFY2015 numbers are of merged entity
Concall takeaways
The company’s Halol plant has been reported to have got an OAI (Official
Action Indicated). According to the USFDA, an OAI (Official Action Indicated)
inspection classification means significant objectionable conditions or practices
were found and regulatory action is warranted to address the establishment's
lack of compliance with statutes or regulations. With Halol plant likely to get
into more trouble, we believe that the same will play in its US business.
The company Management informed investors that the company has
submitted an original remediation plan for Halol to the USFDA and kept the
agency updated on the progress "at great frequency". Thus, the overall
difficulty levels for the Halol plant have increased and would thus impact US
sales.
November 17, 2015
4
Sun Pharma | 2QFY2016 Result Update
Investment arguments
Strongest ANDA pipeline: Sun Pharma, with the recent acquisitions of DUSA, URL
Pharma and Ranbaxy Laboratories, has now become strong in the US region, with
the geography accounting for 50% of its sales in FY2015. In terms of ANDAs, the
company cumulatively has 445 products, out of which 154 products now await
USFDA approval, including 12 tentative approvals. With the merger of Ranbaxy
Laboratories, the company is now the fifth-largest specialty generics company in
the world (behind Teva, Sandoz, Activas and Mylan). However, the near term
performance of the company has been impacted on back of supply constraints at
the Halol facility, although the company has take redemption measures including
site transfers. Thus FY2016 US sales are expected to be impacted and a revival
would only be in FY2017. Thus we expect a 2.2% growth in FY2016 and around
16.0% yoy growth in FY2017. Overall, we expect the region to post an 8.9%
CAGR in sales over FY2015-17E, accounting for almost 49% of the overall sales in
FY2017E.
Domestic business: Sun Pharma’s domestic formulation business is among the
fastest growing in the Indian pharmaceutical industry. It contributed 23% to the
company’s total turnover in FY2014. Sun Pharma is ranked second and holds a
market share of 5.4% in the domestic formulation market, with exposure to
psychiatry, neurology, CVS, diabetic and gastroenterology segments. With Ranbaxy
Laboratories’ merger, the company is now the segment leader with a 9.2% market
share in the domestic formulation market, followed by Abbott India which has a
market share of 6.5%. This is a significant gap considering that the segment is
highly fragmented. We expect the domestic formulation business to post a CAGR
of 15.4% over FY2015-17E, contributing 27% to the overall formulation sales of
the company in FY2017.
Healthy balance sheet: Sun Pharma has one of the strongest balance sheets in the
sector with cash of
~`10,000cr. The same can continue to support the
Management in inorganic growth and in scouting for acquisitions, especially in the
US and in emerging markets.
Outlook and valuation: : Sun Pharma is one of the largest and fastest growing
Indian pharmaceutical companies. We expect its net sales to post a 9.3% CAGR
(including Ranbaxy Laboratories) to `32,610cr and EPS to post an 8.4% CAGR to
`26.9 over FY2015-17E. We recommend a Buy on the stock.
Exhibit 6: Key assumptions
FY2016E
FY2017E
Domestic Formulation sales growth (%)
15.9
15.0
Export Formulation sales growth (%)
(0.6)
16.3
Growth in employee expenses (%)
15.0
20.0
Operating margins (%)
25.8
30.7
Tax as % of PBT
10.0
10.0
Source: Company, Angel Research
November 17, 2015
5
Sun Pharma | 2QFY2016 Result Update
Exhibit 7: One-year forward PE band
1,400
1,200
1,000
800
600
400
200
-
10x
15x
20x
25x
Source: Company, Angel Research
Exhibit 8: Valuation summary
Company
Reco
CMP
Tgt. price Upside
FY2017E
FY15-17E
FY2017E
(`)
(`)
% PE (x) EV/Sales (x) EV/EBITDA (x)
CAGR in EPS (%)
RoCE (%) RoE (%)
Alembic Pharma
Neutral
662
-
-
27.7
3.9
19.5
26.1
30.3
30.2
Aurobindo Pharma Accumulate
830
872
5.1
19.0
3.1
13.3
16.3
23.4
30.2
Cadila Healthcare
Neutral
413
-
-
23.5
3.5
16.1
24.6
25.2
29.0
Cipla
Neutral
619
-
-
21.4
2.9
15.3
21.4
17.1
16.8
Dr Reddy's
Buy
3,384
3,933
16.2
18.9
2.8
14.7
17.2
19.1
20.6
Dishman Pharma
Neutral
381
-
-
17.6
1.7
8.2
20.4
11.7
11.7
GSK Pharma*
Neutral
3,152
-
-
46.2
8.0
36.4
6.6
33.7
34.3
Indoco Remedies
Neutral
300
-
-
22.1
2.4
13.1
23.0
19.7
19.7
Ipca labs
Buy
719
900
25.1
25.7
2.6
13.7
17.9
11.8
14.0
Lupin
Neutral
1,777
-
-
26.0
4.5
16.6
13.1
29.6
24.7
Sanofi India*
Neutral
4,586
-
-
30.3
4.0
19.0
33.1
27.9
25.5
Sun Pharma
Buy
742
950
28.1
27.6
4.8
15.6
8.4
15.8
16.6
Source: Company, Angel Research; Note: * December year ending
Company background
Sun Pharma is an international specialty pharma company, with a large presence
in the US and India, and a footprint across 40 other markets. In India and rest of
the world markets, the key chronic therapy areas for the company are cardiology,
psychiatry, neurology, gastroenterology, diabetology etc. The company is a market
leader in specialty therapy areas in India. In India, the company has emerged as a
leading pharma company where it is the third largest player. Also, in the US, a key
geography, the company has expanded significantly through both in-organic and
organic routes.
November 17, 2015
6
Sun Pharma | 2QFY2016 Result Update
Profit & Loss statement (Consolidated)
Y/E March (` cr)
FY2013
FY2014
FY2015
FY2016E
FY2017E
Gross sales
11,389
16,200
27,652
28,529
32,906
Less: Excise duty
151
195
366
366
296
Net sales
11,239
16,004
27,287
28,163
32,610
Other operating income
61
76
147
147
147
Total operating income
11,300
16,080
27,433
28,310
32,757
% chg
40.9
42.3
70.6
3.2
15.7
Total expenditure
6,333
9,081
19,470
20,885
22,603
Net raw materials
2,080
2,779
6,739
6,956
8,054
Other mfg costs
491
699
1,192
1,230
1,425
Personnel
1,535
2,074
4,430
5,094
6,113
Other
2,811
3,528
7,109
7,604
7,011
EBITDA
4,906
6,923
7,817
7,279
10,007
% chg
50.9
41.1
12.9
(6.9)
-19.3
(% of Net Sales)
43.7
43.3
28.6
25.8
30.7
Depreciation & amort.
336
409
1,195
1,791
1,991
EBIT
4,570
6,514
6,622
5,634
8,162
% chg
53.7
42.5
1.7
(14.9)
-26.9
(% of Net Sales)
40.7
40.7
24.3
20.0
25.0
Interest & other charges
44
44
579
579
579
Other income
312
552
451
634
634
(% of PBT)
6.4
7.8
6.8
11.1
7.7
Share in profit of Asso.
-
-
-
Recurring PBT
4,898
7,098
6,641
5,689
8,217
% chg
56.8
44.9
(6.4)
(14.3)
(26.5)
Extraordinary expense/(inc.)
584
2,517
237.8
685.0
-
PBT (reported)
4,898
7,098
6,641
5,018
8,244
Tax
845.6
702.2
914.7
501.8
824.4
(% of PBT)
17.3
9.9
13.8
10.0
10.0
PAT (reported)
4,053
6,396
5,726
4,516
7,419
Add: Share of earnings of asso.
-
(13)
-
-
Less: Minority interest (MI)
486
738
936
936
936
Prior period items
-
-
-
PAT after MI (reported)
2,983
3,141
4,539
3,580
6,483
ADJ. PAT
3,455
5,273
4,743
4,197
6,483
% chg
40.6
52.6
(10.0)
(11.5)
(18.1)
(% of Net Sales)
26.5
19.6
16.6
0.0
1.0
Basic EPS (`)
16.7
25.5
22.9
17.4
26.9
Fully Diluted EPS (`)
16.7
25.5
22.9
17.4
26.9
% chg
40.6
52.6
(10.0)
(23.9)
(29.6)
November 17, 2015
7
Sun Pharma | 2QFY2016 Result Update
Balance Sheet (Consolidated)
Y/E March (` cr)
FY2013
FY2014
FY2015
FY2016E
FY2017E
SOURCES OF FUNDS
Equity share capital
104
207
207
241
241
Preference capital
-
Reserves & surplus
14,041
18,318
26,300
37,774
43,651
Shareholders’ funds
14,145
18,525
26,507
38,015
43,892
Minority interest
1,635
1,921
2,851
3,881
4,817
Total loans
198
2,561
7,596
7,596
7,596
Deferred tax liability
(711)
(911)
(1,752)
(1,752)
(1,752)
Other Long Term Liabilities
9
9
9
10
10
Long Term Provisions
787
2,602
2,710
2,710
2,371
Total liabilities
16,063
24,707
37,922
50,461
56,935
APPLICATION OF FUNDS
Gross block
7,566
6,389
15,041
19,041
20,041
Less: Acc. depreciation
2,833
3,668
4,863
6,102
8,093
Net block
4,732
2,721
10,179
12,939
11,948
Capital work-in-progress
345
842
842
842
303
Goodwill
1,133
4,097
3,701
3,701
3,701
Investments
2,412
2,786
2,716
2,716
2,716
Long term long & adv.
1,009
1,051
2,736
2,559
2,948
Current assets
9,634
16,688
27,005
35,832
46,847
Cash
4,059
7,590
10,998
22,413
29,693
Loans & advances
1,080
3,774
2,193
2,006
2,480
Other
4,496
3,816
13,813
11,413
14,674
Current liabilities
3,202
3,477
9,256
8,128
11,528
Net current assets
6,432
13,211
17,748
27,703
35,320
Others
-
-
-
-
-
Total assets
16,063
24,707
37,922
50,461
56,935
November 17, 2015
8
Sun Pharma | 2QFY2016 Result Update
Cash Flow Statement (Consolidated)
Y/E March (` cr)
FY2013
FY2014
FY2015
FY2016E
FY2017E
Profit before tax
4,898
7,098
6,641
5,689
8,217
Depreciation
336
409
1,195
1,791
1,991
(Inc)/Dec in working capital
18
(1,782)
(4,322)
1,637
9
Direct taxes paid
846
702
915
502
824
Cash Flow from Operations
4,407
5,024
2,598
8,615
9,394
(Inc.)/Dec.in Fixed Assets
(2,139)
681
(8,653)
(4,000)
(3,561)
(Inc.)/Dec. in Investments
(199)
(374)
70
-
-
Other income
-
-
-
-
-
Cash Flow from Investing
(2,338)
306
(8,583)
(4,000)
(3,561)
Issue of Equity
-
-
-
-
-
Inc./(Dec.) in loans
771
(548)
(4,928)
1
(339)
Dividend Paid (Incl. Tax)
(606)
(606)
-
(606)
(606)
Others
(1,541)
(645)
14,556
12,423
7,461
Cash Flow from Financing
(1,376)
(1,799)
9,628
11,818
6,517
Inc./(Dec.) in Cash
692
3,531
3,644
16,434
12,349
Opening Cash balances
3,367
4,059
7,590
10,998
20,601
Closing Cash balances
4,059
7,590
10,998
22,413
29,693
November 17, 2015
9
Sun Pharma | 2QFY2016 Result Update
Key Ratios
Y/E March
FY2013
FY2014
FY2015
FY2016E
FY2017E
Valuation Ratio (x)
P/E (on FDEPS)
44.5
29.1
32.4
42.6
27.6
P/CEPS
23.1
43.3
26.8
33.3
21.1
P/BV
10.9
8.3
5.8
4.0
3.5
Dividend yield (%)
0.7
0.3
0.3
0.3
0.3
EV/Sales
6.3
9.3
5.5
5.8
4.8
EV/EBITDA
14.5
21.4
19.2
22.5
15.6
EV / Total Assets
4.4
6.0
4.0
3.2
2.7
Per Share Data (`)
EPS (Basic)
16.7
25.5
22.9
17.4
26.9
EPS (fully diluted)
16.7
25.5
22.9
17.4
26.9
Cash EPS
32.0
17.1
27.7
22.3
35.2
DPS
5.0
2.5
2.5
2.5
2.5
Book Value
68.3
89.4
128.0
183.5
211.9
Dupont Analysis
EBIT margin
40.7
40.7
24.3
20.0
25.0
Tax retention ratio
82.7
90.1
86.2
90.0
90.0
Asset turnover (x)
1.0
1.1
1.2
1.0
1.2
ROIC (Post-tax)
34.7
40.5
26.1
18.5
27.9
Cost of Debt (Post Tax)
14.1
2.9
9.8
6.9
6.9
Leverage (x)
0.0
0.0
0.0
0.0
0.0
Operating ROE
34.7
40.5
26.1
18.5
27.9
Returns (%)
ROCE (Pre-tax)
31.2
32.0
21.1
12.7
15.8
Angel ROIC (Pre-tax)
47.9
57.4
38.3
24.6
36.8
ROE
26.3
32.3
21.1
13.0
16.6
Turnover ratios (x)
Asset Turnover (Gross Block)
1.7
2.3
2.6
1.7
1.8
Inventory / Sales (days)
81
98
58
120
136
Receivables (days)
65
80
50
97
110
Payables (days)
64
49
61
50
65
WC cycle (ex-cash) (days)
85
91
82
78
65
Solvency ratios (x)
Net debt to equity
(0.3)
(0.3)
(0.1)
(0.4)
(0.5)
Net debt to EBITDA
(0.8)
(0.7)
(0.4)
(2.0)
(2.2)
Interest Coverage (EBIT/Int.)
-
-
-
-
-
November 17, 2015
10
Sun Pharma | 2QFY2016 Result Update
Research Team Tel: 022 - 39357800
E-mail: [email protected]
Website: www.angelbroking.com
DISCLAIMER
This document is solely for the personal information of the recipient, and must not be singularly used as the basis of any investment
decision. Nothing in this document should be construed as investment or financial advice. Each recipient of this document should
make such investigations as they deem necessary to arrive at an independent evaluation of an investment in the securities of the
companies referred to in this document (including the merits and risks involved), and should consult their own advisors to determine
the merits and risks of such an investment.
Angel Broking Pvt. Limited, its affiliates, directors, its proprietary trading and investment businesses may, from time to time, make
investment decisions that are inconsistent with or contradictory to the recommendations expressed herein. The views contained in this
document are those of the analyst, and the company may or may not subscribe to all the views expressed within.
Reports based on technical and derivative analysis center on studying charts of a stock's price movement, outstanding positions and
trading volume, as opposed to focusing on a company's fundamentals and, as such, may not match with a report on a company's
fundamentals.
The information in this document has been printed on the basis of publicly available information, internal data and other reliable
sources believed to be true, but we do not represent that it is accurate or complete and it should not be relied on as such, as this
document is for general guidance only. Angel Broking Pvt. Limited or any of its affiliates/ group companies shall not be in any way
responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report.
Angel Broking Pvt. Limited has not independently verified all the information contained within this document. Accordingly, we cannot
testify, nor make any representation or warranty, express or implied, to the accuracy, contents or data contained within this document.
While Angel Broking Pvt. Limited endeavours to update on a reasonable basis the information discussed in this material, there may be
regulatory, compliance, or other reasons that prevent us from doing so.
This document is being supplied to you solely for your information, and its contents, information or data may not be reproduced,
redistributed or passed on, directly or indirectly.
Angel Broking Pvt. Limited and its affiliates may seek to provide or have engaged in providing corporate finance, investment banking
or other advisory services in a merger or specific transaction to the companies referred to in this report, as on the date of this report or
in the past.
Neither Angel Broking Pvt. Limited, nor its directors, employees or affiliates shall be liable for any loss or damage that may arise from
or in connection with the use of this information.
Note: Please refer to the important `Stock Holding Disclosure' report on the Angel website (Research Section). Also, please refer to the
latest update on respective stocks for the disclosure status in respect of those stocks. Angel Broking Pvt. Limited and its affiliates may
have investment positions in the stocks recommended in this report.
Disclosure of Interest Statement
Sun Pharma
1. Analyst ownership of the stock
No
2. Angel and its Group companies ownership of the stock
No
3. Angel and its Group companies' Directors ownership of the stock
No
4. Broking relationship with company covered
No
Note: We have not considered any Exposure below ` 1 lakh for Angel, its Group companies and Directors
Ratings (Based on expected returns
Buy (> 15%)
Accumulate (5% to 15%)
Neutral (-5 to 5%)
over 12 months investment period):
Reduce (-5% to -15%)
Sell (< -15%)
November 17, 2015
11