Sun Pharma stock expected to keep market lead as firm recovers in US

Stock trading at the highest discount to ten-year valuation averages, as brokerages favour its US specialty portfolio.

The Sun Pharma stock has been an outperformer since July, gaining 15 per cent against a 3.6 per cent rise in the BSE Healthcare index. Over the past 10 days, the stock has been upgraded by brokerages amid expectations of a recovery in the US specialty segment.

Further, recovery in the domestic chronic segment in August is positive; the company reported 21 per cent growth for chronics’ therapies in August. The stock is also among the few pharma names trading at the biggest discount to 10-year valuation averages.

The main trigger continues to be the growth expectation from its specialty portfolio in