4QFY2016 Result Update | Pharmaceutical

June 10, 2016

Sun Pharma

BUY

CMP

`739

Performance Highlights

Target Price

`944

(` cr)

4QFY2016 3QFY2016

% chg QoQ 4QFY2015

% chg yoy

Investment Period

12 months

Net sales

7,414

7,047

5.2

6,145

20.7

Other income

185

255

(27.2)

396

(53.2)

Stock Info

Gross profit

5,962

5,291

12.7

4,547

31.1

Sector

Pharmaceutical

Operating profit

2,300

2,134

7.8

880

161.3

Market Cap (` cr)

1,77,811

Adj. Net profit

1,714

1,417

21.0

889

92.7

Net Debt (` cr)

(6,960)

Source: Company, Angel Research

Beta

0.8

For 4QFY2016, Sun Pharmaceuticals Industries (Sun Pharma) posted results

52 Week High / Low

965/706

marginally lower than our expectations. Sales for the quarter, at `7,414cr (V/s

Avg. Daily Volume

4,23,363

`7,700cr estimated) grew 20.7% yoy. On the operating front, the company

Face Value (`)

posted an OPM of 31.0% V/s 14.3% in 4QFY2015 and V/s our expectation of

BSE Sensex

27,010

34.9%. Thus, the net profit came in at `1,714cr V/s `1,653cr expected and V/s

Nifty

8,266

`889cr in 4QFY2015, a yoy growth of 92.7%. For FY2017, the company has guided

Reuters Code

SUN.BO

for 8-10% yoy growth, while R&D expenses are expected to be 9% of sales in

Bloomberg Code

SUNP@IN

FY2017. However, we are currently maintaining our buy with target price of `944.

Results mostly in line with expectations: For 4QFY2016, Sun Pharma posted

Shareholding Pattern (%)

results marginally lower than our expectations. Sales for the quarter, at `7,414cr

Promoters

55.0

(V/s `7,700cr estimated) grew 20.7% yoy. The Indian formulations market

MF / Banks / Indian Fls

11.6

posted a growth of 17% yoy to `1807cr. US finished dosage sales at US$580mn

FII / NRIs / OCBs

26.7

were up by 19% yoy. US sales include the benefit of the 180-day exclusivity for

Indian Public / Others

6.7

Imatinib which commenced from Feb 2016. Emerging Markets sales stood at

US$124mn, while Rest of World (RoW) sales came in at US$79mn.On the

operating front, the company posted an OPM of 31.0% V/s 14.3% in 4QFY2015

Abs. (%)

3m 1yr

3yr

and V/s our expectation of 34.9%. R&D expenditure during the quarter was 9.6%

Sensex

9.6

0.9

39.0

of sales. Thus, the net profit came in at `1,714cr V/s `1,653cr expected and V/s

Sun Pharma

(13.8)

(12.9)

45.9

`889cr in 4QFY2015, a yoy growth of 92.7%. Other income during the quarter

came in at `185cr V/s `396cr in 4QFY2015.

3-year price chart

Outlook and valuation: Sun Pharma is one of the largest and fastest growing

1,200

Indian pharmaceutical companies. We expect its net sales to post a 12.7% CAGR

1,000

(including Ranbaxy Laboratories) to `35,258cr and EPS to post a 22.0% CAGR to

800

`32.8 over FY2016-18E. We recommend a Buy on the stock.

600

Key financials (Consolidated)

400

Y/E March (` cr)

FY2015

FY2016

FY2017E

FY2018E

200

Net sales

27,287

27,744

31,129

35,258

% chg

70.6

1.7

12.2

13.3

Adj. Net profit

4,743

5,306

6,735

7,895

Source: Company, Angel Research

% chg

(10.0)

11.9

26.9

17.2

EPS (`)

22.9

22.0

28.0

32.8

EBITDA margin (%)

28.6

26.2

30.0

30.9

P/E (x)

32.3

33.5

26.4

22.5

RoE (%)

21.1

18.3

18.7

18.9

RoCE (%)

21.1

16.6

17.7

33.1

P/BV (x)

6.7

4.9

4.0

3.4

Sarabjit Kour Nangra

EV/Sales (x)

5.5

6.2

5.4

4.5

+91 22 39357600 Ext: 6806

EV/EBITDA (x)

19.1

23.8

17.9

14.7

[email protected]

Source: Company, Angel Research; Note: CMP as of June 7, 2016

Please refer to important disclosures at the end of this report

Sun Pharma | 4QFY2016 Result Update

Exhibit 1: 4QFY2016 performance (Consolidated)

Y/E March (` cr)

4QFY2016

3QFY2016

% chg QoQ 4QFY2015

% chg yoy FY2016

FY2015

% chg

Net sales

7,414

7,047

5.2

6,145

20.7

27,744

27,287

1.7%

Other income

185.3

254.7

(27.2)

395.8

(53.2)

984.8

599.0

64.4

Total income

7,599

7,301

4.1

6,541

16.2

28,729

27,886

3.0

Gross profit

5,962

5,291

12.7

4,547

31.1

21,261

20,547

3.5

Gross margin (%)

80.4

75.1

74.0

76.6

75.3

Operating profit

2,300

2,134

7.8

880

161.3

7,271

7,679

(5.3)

Operating margin (%)

31.0

30.3

14.3

26.2

28.1

Interest

117

(24.3)

125

(29.0)

477

579

(17.6)

Depreciation

264

251

5.4

562

(53.0)

1,014

1,295

(21.7)

Extraordinary item loss/ ( gain)

(590)

(204)

PBT

2,132

2,020

5.5

589

261.8

6,765

6,404

5.6

Provision for taxation

170.6

202.0

(15.6)

(599.9)

(128.4)

935

915

2.2

PAT before extra-ordinary item

1,962

1,818

7.9

1,189

65.0

5,830

5,489

6.2

Minority interest(MI)

248

402

(38.2)

301

(17.6)

1,114

949

17.5

Reported PAT

1,714

1,417

21.0

889

92.7

4,716

4,540

3.9

Adj. PAT

1,714

1,417

21.0

889

92.7

5,306

4,743

11.9

Adj. EPS (`)

7.1

5.9

3.7

22.0

22.9

Source: Company, Angel Research

Exhibit 2: 4QFY2016 - Actual V/s Angel estimates

(` cr)

Actual

Estimates

Variance (%)

Net sales

7,414

7,700

(3.7)

Other income

185

255

(27.2)

Operating profit

2,300

2,690

(14.5)

Tax

171

396

(56.9)

Adj. Net profit

1,714

1,653

3.7

Source: Company, Angel Research

Lower than expected performance: Sun Pharma posted marginally lower than

expected results for the quarter. Sales grew 20.7% yoy to `7,414cr (V/s `7,700cr

estimated). Amongst the key markets- India (`1,807cr) posted a growth of 17%

yoy, US (US$580mn) posted a growth of 19% yoy, Emerging Markets (US$124mn)

were flat and ROW (US$79mn) was down 6% yoy.

Sale of branded formulations in India for 4QFY2016 stood at `1,807cr, up 17%

yoy from the corresponding quarter last year and accounted for 24% of total sales.

Withdrawal of bonus offers continues to adversely impact sales in the acute

segment. For FY2016, sales were at `7,254cr, higher by 9% yoy over the same

period last year. Sun Pharma is ranked No. 1 and holds ~8.8% market share in

the `98,000cr pharmaceutical market as per the March-2016 AIOCD-AWACS

report.

In USD terms, sales in the US came in at US$580mn for the quarter, accounting

for 52% of total sales. Sales for the quarter were boosted primarily due to the

benefit of the 180-day exclusivity for Imatinib which commenced from 01-Feb-

2016. At the same time, Taro posted 4QFY2016 sales of US$265mn, up 9% yoy.

For FY2016, sales were up by 10% yoy to US$951mn.

June 10, 2016

Sun Pharma | 4QFY2016 Result Update

Sales in emerging markets were at US$124mn for 4QFY2016, flat compared to

the same period last year and accounted for 11% of total sales. For FY2016, sales

were at US$548mn, a drop of 10% over the previous year. The decline is largely a

result of volatile currency movements in certain emerging markets and a strategic

decision of not participating in some low margin businesses.

Formulation sales in Rest of World (ROW) markets excluding US and Emerging

Markets were US$79mn in 4QFY2016, a de-growth of

6% yoy from the

corresponding quarter last year. For FY2016, sales were at US$330mn, a

reduction of 13% over same period last year. A conscious effort at reducing the

participation in non-remunerative businesses has contributed to de-growth in the

business. ROW markets accounted for ~7% of revenues for 4QFY2016.

The company had a total of 413 ANDAs filed with the USFDA. Currently, ANDAs

for 159 products await USFDA approval, including 14 tentative approvals.

Exhibit 3: Sales trend

6,000

5,000

4,000

3,000

2,000

1,000

4QFY2015

1QFY2016

2QFY2016

3QFY2016

4QFY2016

Domestic Formulation

Export Formulation, Bulk and others

Source: Company, Angel Research

OPM at 31.0%; higher than an expected 34.9%: On the operating front, the

company posted an OPM of 31.0% V/s 14.3% in 4QFY2015. This is against our

expectation of 34.9%. Sun Pharma had launched generic Gleevec in Feb 2016 in

the US under 180 days exclusivity. Being the sole generic player in the market, the

company has generated sales of close to US$110m-115m from the product. The

R&D expenditure was 9.1% of sales V/s 9.4% of sales in 4QFY2015.

June 10, 2016

Sun Pharma | 4QFY2016 Result Update

Exhibit 4: OPM trend (%)

40.0

30.3

31.0

27.9

30.0

24.8

20.0

14.3

10.0

4QFY2015

1QFY2016

2QFY2016

3QFY2016

4QFY2016

Source: Company, Angel Research, Note- post 4QFY2015 numbers are of merged entity

Net profit came in higher than our expectation: Thus, the net profit came in at

`1,714cr V/s `1,653cr expected and V/s `889cr in 4QFY2015, a yoy growth of

92.7%. Other income during the quarter came in at `185.3cr V/s `395.8cr in

4QFY2015.

Exhibit 5: Adjusted Net profit trend (`cr)

2,000

1,714

1,500

1,417

1,165

1,107

993

1,000

500

4QFY2015

1QFY2016

2QFY2016

3QFY2016

4QFY2016

Source: Company, Angel Research

Concall takeaways

 Guidance for top-line growth of 8-10% in FY2017, while R&D expenses to be

at 9% of sales in FY2017.

 Halol remediation to be completed in 1QFY2017 and re-inspection is

expected in the near-term.

 Tax rate guidance of 14-15% provided for FY2017.

 The company is on track to achieve US$300m from Ranbaxy synergies by

FY2018E; a part of it will also be in FY2017.

June 10, 2016

Sun Pharma | 4QFY2016 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 52% of its sales in FY2016. In terms of ANDAs, the

company cumulatively has 413 products, out of which 159 products now await

USFDA approval, including 13 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. Overall, we expect the region to post a 14.5% CAGR in sales over

FY2016-18E, accounting for almost 49% of the overall sales in FY2018E.

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 12.5% over FY2016-18E, contributing 25% to the overall formulation sales of

the company in FY2018.

Healthy balance sheet: Sun Pharma has one of the strongest balance sheets in the

sector with cash of

~`15,000cr. 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 12.7% CAGR

(including Ranbaxy Laboratories) to `35,258cr and EPS to post an 22.0% CAGR to

`32.8 over FY2016-18E. We recommend a Buy on the stock.

Exhibit 6: Key assumptions

FY2017E

FY2018E

Domestic Formulation sales growth (%)

10.0

15.0

Export Formulation sales growth (%)

14.3

13.5

Growth in employee expenses (%)

15.0

20.0

Operating margins (%)

30.0

30.9

Tax as % of PBT

15.0

Source: Company, Angel Research

June 10, 2016

Sun Pharma | 4QFY2016 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

557

29.8

3.0

18.2

11.4

22.0

20.1

Aurobindo Pharma Accumulate

773

768

10.8

20.1

3.1

14.5

11.4

21.4

27.7

Cadila Healthcare

Buy

320

400

25.0

18.7

2.9

13.2

22.9

24.2

28.8

Cipla

Neutral

469

21.6

2.7

15.3

4.9

11.1

13.7

Dr Reddy's

Accumulate

3,158

3,476

10.1

20.7

3.0

12.3

6.8

19.2

18.7

Dishman Pharma

Neutral

152

15.2

1.6

7.7

15.9

9.4

11.0

GSK Pharma

Neutral

3,515

58.4

8.1

43.0

0.0

33.0

29.9

Indoco Remedies

Neutral

282

20.7

2.2

12.4

23.0

19.7

Ipca labs

Buy

431

750

74.0

15.4

1.6

8.8

17.9

11.8

14.9

Lupin

Buy

1,435

1,809

26.1

24.7

4.1

15.6

13.1

29.6

24.7

Sanofi India*

Accumulate

4,300

4,738

10.2

28.0

3.9

22.3

34.2

21.0

25.6

Sun Pharma

Buy

739

950

28.6

26.4

5.4

17.9

10.5

17.7

18.7

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.

June 10, 2016

Sun Pharma | 4QFY2016 Result Update

Profit & Loss statement (Consolidated)

Y/E March (` cr)

FY2014

FY2015

FY2016

FY2017E

FY2018E

Gross sales

16,200

27,652

28,110

31,412

35,578

Less: Excise duty

195

366

283

320

Net sales

16,004

27,287

27,744

31,129

35,258

Other operating income

147

526

Total operating income

16,080

27,433

28,270

31,655

35,784

% chg

42.3

70.6

3.0

12.0

13.0

Total expenditure

9,081

19,470

20,473

21,799

24,348

Net raw materials

2,779

6,739

6,483

7,274

8,239

Other mfg costs

699

1,192

1,212

1,360

1,540

Personnel

2,074

4,430

4,797

5,382

6,459

Other

3,528

7,109

7,981

7,782

8,109

EBITDA

6,923

7,817

7,271

9,330

10,910

% chg

41.1

12.9

(7.0)

(23.2)

(19.3)

(% of Net Sales)

43.3

28.6

26.2

30.0

30.9

Depreciation & amort.

409

1,195

1,014

1,214

1,414

EBIT

6,514

6,622

6,783

8,642

10,022

% chg

42.5

1.7

2.4

-20.7

16.0

(% of Net Sales)

40.7

24.3

24.4

27.8

28.4

Interest & other charges

579

477

Other income

552

451

1,050

(% of PBT)

7.8

6.8

14.3

11.4

9.9

Share in profit of Asso.

Recurring PBT

7,098

6,641

7,356

9,215

10,595

% chg

44.9

(6.4)

10.8

(15.6)

0.0

Extraordinary expense/(inc.)

2,517

237.8

590.5

PBT (reported)

7,098

6,641

6,765

9,231

10,595

Tax

702.2

914.7

934.9

1,384.6

1,589.3

(% of PBT)

9.9

13.8

15.0

PAT (reported)

6,396

5,726

5,830

7,846

9,006

Add: Share of earnings of asso.

(13)

(2)

Less: Minority interest (MI)

738

936

1,111

Prior period items

PAT after MI (reported)

3,141

4,539

4,716

6,735

7,895

ADJ. PAT

5,273

4,743

5,306

6,735

7,895

% chg

52.6

(10.0)

11.9

(12.6)

17.2

(% of Net Sales)

19.6

16.6

0.0

1.0

2.0

Basic EPS (`)

25.5

22.9

22.0

28.0

32.8

Fully Diluted EPS (`)

25.5

22.9

22.0

28.0

32.8

% chg

52.6

(10.0)

(3.7)

(24.8)

17.2

June 10, 2016

Sun Pharma | 4QFY2016 Result Update

Balance Sheet (Consolidated)

Y/E March (` cr)

FY2014

FY2015

FY2016

FY2017E

FY2018E

SOURCES OF FUNDS

Equity share capital

207

241

Preference capital

Reserves & surplus

18,318

26,300

31,164

37,617

45,231

Shareholders’ funds

18,525

26,507

31,404

37,858

45,472

Minority interest

1,921

2,851

4,085

5,196

6,307

Total loans

2,561

7,596

8,338

Deferred tax liability

(911)

(1,752)

(2,126)

Other Long Term Liabilities

Long Term Provisions

2,602

2,710

2,293

2,287

2,554

Total liabilities

24,707

37,922

44,005

51,563

60,556

APPLICATION OF FUNDS

Gross block

6,389

15,041

18,621

19,621

20,621

Less: Acc. depreciation

3,668

4,863

6,102

7,315

8,729

Net block

2,721

10,179

12,519

12,306

11,892

Capital work-in-progress

842

303

1,144

Goodwill

4,097

3,701

4,181

Investments

2,786

2,716

1,309

1,551

1,388

Long term long & adv.

1,051

2,736

3,032

3,402

3,854

Current assets

16,688

27,005

30,149

38,366

47,641

Cash

7,590

10,998

13,989

20,005

27,173

Loans & advances

3,774

2,193

2,006

2,480

2,481

Other

3,816

13,813

14,154

15,881

17,987

Current liabilities

3,477

9,256

8,026

8,546

9,545

Net current assets

13,211

17,748

22,123

29,820

38,096

Others

Total assets

24,707

37,922

44,006

51,563

60,556

June 10, 2016

Sun Pharma | 4QFY2016 Result Update

Cash Flow Statement (Consolidated)

Y/E March (` cr)

FY2014

FY2015

FY2016

FY2017E

FY2018E

Profit before tax

7,098

6,641

7,356

9,215

10,595

Depreciation

409

1,195

1,014

1,214

1,414

(Inc)/Dec in working capital

(1,782)

(4,322)

(1,680)

(4,815)

(14,776)

Direct taxes paid

702

915

935

1,385

1,589

Cash Flow from Operations

5,024

2,598

5,754

4,229

(4,357)

(Inc.)/Dec.in Fixed Assets

681

(8,653)

(3,580)

(3,141)

(1,842)

(Inc.)/Dec. in Investments

(374)

1,408

1,165

163

Other income

Cash Flow from Investing

306

(8,583)

(2,172)

(1,975)

(1,679)

Issue of Equity

Inc./(Dec.) in loans

(548)

(4,928)

(1,157)

(1,165)

268

Dividend Paid (Incl. Tax)

(606)

(282)

Others

(645)

14,320

847

(1,404)

13,217

Cash Flow from Financing

(1,799)

9,392

(592)

(2,850)

13,204

Inc./(Dec.) in Cash

3,531

3,408

2,991

(596)

7,168

Opening Cash balances

4,059

7,590

10,998

20,601

20,005

Closing Cash balances

7,590

10,998

13,989

20,005

27,173

June 10, 2016

Sun Pharma | 4QFY2016 Result Update

Key Ratios

Y/E March

FY2014

FY2015

FY2016

FY2017E

FY2018E

Valuation Ratio (x)

P/E (on FDEPS)

29.0

32.3

33.5

26.4

22.5

P/CEPS

43.1

26.7

31.0

22.4

19.1

P/BV

8.3

6.7

4.9

4.0

3.4

Dividend yield (%)

0.3

0.4

0.1

EV/Sales

9.2

5.5

6.2

5.4

4.5

EV/EBITDA

21.4

19.1

23.8

17.9

14.7

EV / Total Assets

6.0

3.9

3.2

2.6

Per Share Data (`)

EPS (Basic)

25.5

22.9

22.0

28.0

32.8

EPS (fully diluted)

25.5

22.9

22.0

28.0

32.8

Cash EPS

17.1

27.7

23.8

33.0

38.7

DPS

2.5

3.0

1.0

Book Value

89.4

110.2

151.6

182.8

219.5

Dupont Analysis

EBIT margin

40.7

24.3

24.4

27.8

28.4

Tax retention ratio

90.1

86.2

85.0

Asset turnover (x)

1.1

1.2

1.0

1.1

ROIC (Post-tax)

40.5

26.1

20.9

26.2

26.6

Cost of Debt (Post Tax)

2.9

9.8

5.2

5.1

9.7

Leverage (x)

0.0

Operating ROE

40.5

26.1

20.9

26.2

26.6

Returns (%)

ROCE (Pre-tax)

32.0

21.1

16.6

17.7

33.1

Angel ROIC (Pre-tax)

57.4

38.3

28.6

36.0

71.4

ROE

32.3

21.1

18.3

18.7

18.9

Turnover ratios (x)

Asset Turnover (Gross Block)

2.3

2.6

1.7

1.8

3.5

Inventory / Sales (days)

Receivables (days)

Payables (days)

WC cycle (ex-cash) (days)

Solvency ratios (x)

Net debt to equity

(0.3)

(0.1)

(0.2)

(0.3)

(0.4)

Net debt to EBITDA

(0.7)

(0.4)

(0.8)

(1.3)

(1.7)

Interest Coverage (EBIT/Int.)

June 10, 2016

Sun Pharma | 4QFY2016 Result Update

Research Team Tel: 022 - 39357800

E-mail: [email protected]

Website: www.angelbroking.com

DISCLAIMER

Angel Broking Private Limited (hereinafter referred to as “Angel”) is a registered Member of National Stock Exchange of India Limited,

Bombay Stock Exchange Limited and Metropolitan Stock Exchange of India Limited. It is also registered as a Depository Participant with

CDSL and Portfolio Manager with SEBI. It also has registration with AMFI as a Mutual Fund Distributor. Angel Broking Private Limited is

a registered entity with SEBI for Research Analyst in terms of SEBI (Research Analyst) Regulations, 2014 vide registration number

INH000000164. Angel or its associates has not been debarred/ suspended by SEBI or any other regulatory authority for accessing

/dealing in securities Market. Angel or its associates including its relatives/analyst do not hold any financial interest/beneficial

ownership of more than 1% in the company covered by Analyst. Angel or its associates/analyst has not received any compensation /

managed or co-managed public offering of securities of the company covered by Analyst during the past twelve months. Angel/analyst

has not served as an officer, director or employee of company covered by Analyst and has not been engaged in market making activity

of the company covered by Analyst.

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.

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 endeavors 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,

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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

2. Angel and its Group companies ownership of the stock

3. Angel and its Group companies' Directors ownership of the stock

4. Broking relationship with company covered

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)

June 10, 2016