Sun Pharma shares near 52 week high – Still a ‘Buy’ post Q4 results?

Sun Pharmaceutical Industries Ltd shares faced some selling pressure on Friday, declining 2.43% to close at Rs 1,845.20 apiece on the BSE following the announcement of its Q4FY26 earnings. 

Notably, the stock had hit its 52-week high of Rs 1,917.15 earlier in the week on Tuesday, May 19, 2026. Despite Friday’s decline, the counter is currently trading less than 4% below its record peak.

Sun Pharma share price target

Following the Q4 results, domestic brokerage HDFC Securities retained its ‘Buy’ rating on the stock and upgraded its target price to Rs 2,120 per share, up from the previous target of Rs 2,000.

While the company reported 118 basis point improvement in its gross margin, this profitability was largely offset by higher costs across staff, SG&A, and R&D segments, it said. The brokerage expects sustained growth momentum in the specialty business, led by traction in key products such as Ilumya, Cequa, and Winlevi. 

A anticipated catalyst for the domestic market is the launch of the diabetes drug Semaglutide (GLP-1); the oral solid form has completed clinical studies and is waiting for approval in India, it noted.

“EBITDA grew 3% YoY despite 13% sales growth (US: -4% QoQ; global specialty: +20% YoY; India: +15% YoY) andhigher gross margin (+118 bps), which was offset by higher costs(staff/SG&A/R&D, up +19/20/23%),” the brokerage noted.

The brokerage noted that a turnaround in the US generics business depends on key plant clearance (Halol, Baska, and Mohali).  Looking ahead to FY27, Sun Pharma’s management has guided for high-single-digit revenue growth and expects R&D investments to remain at 6-7% of sales, it added.

“We expect the scaleup in specialty (traction in Ilumya, Winlevi, Cequa, and Leqselvi) and the India business (new launches, in-licensing) to offset the soft US generics business,” HDFC Securities said.