Sun Pharma stock: Nomura cuts target to Rs 2,260

Published on 11/06/2026 at 03:24 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Nomura kept its Buy rating but lowered its target after slower specialty growth. Sun Pharma stock retains support from strong Indian demand and the Organon deal.

What Nomura sees next

Nomura retained its Buy rating while lowering its valuation view after slower specialty growth.
Strong Indian demand and the proposed Organon acquisition remain central to the investment case.
Nomura expects specialty growth to recover as Ilumya and new launches gain traction.

Sun Pharma, INE044A01036, Illustration mit AI erstellt.

Nomura retained its Buy rating on Sun Pharmaceutical Industries but cut its target price to Rs 2,260 from Rs 2,400, citing a slowdown in the company's specialty business. Moneycontrol published the analysis on Monday, November 2, 2026.

India growth offsets specialty pressure

Nomura said Sun Pharma's second-quarter fiscal 2027 revenue and EBITDA exceeded its estimates by 1 percent and 8 percent, respectively. Adjusted net profit rose 4 percent year on year to Rs 32.5 billion, while India revenue increased 17.3 percent.

The brokerage linked the valuation reduction to slower specialty growth, a higher cost of capital and multiple compression for domestic formulations. Global innovative-medicines sales rose 6.9 percent to $356 million, but management attributed the specialty slowdown to weaker US Ilumya performance.

Organon deal remains a catalyst

Nomura remains constructive on Sun Pharma's proposed acquisition of Organon. Management expects the transaction to close by the fourth quarter of fiscal 2027, while Nomura estimates potential synergies of $500 million against company guidance of $350 million.

The brokerage expects specialty growth to improve in fiscal 2028 and fiscal 2029, supported by Ilumya and new product launches. It also sees continued valuation support from Sun Pharma's domestic formulations and branded-generic businesses.