Bullish on Sun Pharma: Taher Badshah

In a chat with ET Now, Taher Badshah, Senior Vice President & Co-Head Equities, Motilal Oswal AMC, shares his views on Sun Pharma.

ET Now: How would you approach Sun Pharma now?

Taher Badshah: There may be a certain amount of delay both on account of the approval of the US FDA on the Halol facility as well as probably on the proposed merger and while the company probably seems to be in course in terms of their activity towards both these areas. But even accounting for delays, they have got a good pipeline of products still both in the niche category of injectables. They have got a healthy ANDA pipeline, 140 odd and some of the other limited opportunity products as well.

So it should be possible over the next two-three quarters Taro should be driven price hikes. It has done pretty well even in the previous quarter and of course we have seen a healthy 20% plus growth in the domestic formulation business. So there is traction. Maybe probably the growth will not be in the 25% plus bracket but clearly in the bracket of between 15% and 20% and not taking into account any kind of other opportunities which may come along over the space of the next 18 to 24 months.

So we have got about 20% earnings growth and that should be fairly satisfactory for the stock to hold on or marginally make progress in the more near future.