Street concerns ease as Sun Pharma's specialty segment delivers in Q2

Upsides in the stock will depend on sustaining specialty and India sales growth

Pharma stocks have been the biggest gainers in six months, but the notable underperformer in that list is the country’s largest drug maker Sun Pharma. Compared to 27 per cent returns for the peer index, the BSE Healthcare in that period, Sun managed just a third of that number.

The muted returns was largely a function of the underwhelming results in the domestic as well as the US market over the last couple of quarters. In addition to the recovery in the US specialty portfolio, the street will watch out for the resolution of regulatory issues at the Halol