Sun Pharmaceutical Industries

(SUNP IN)
Rating: REDUCE | CMP: Rs532 | TP: Rs479

August 2, 2020 Specialty, Taro to remain weak; Lower overhead

likely to be unsustainable
Q1FY21 Result Update
Quick Pointers:
 Change in Estimates |  Target | ☑ Reco

Change in Estimates
 US sales declined 25% QoQ to US$282m led by 33% /18% QoQ decline in

Current Previous
Taro and non-Taro sales (led by fall in specialty product sales)
FY22E FY23E FY22E FY23E
Rating REDUCE HOLD  Net loss of Rs16.5bn due to Taro DOJ settlement and provision
Target Price 479 479
Sales (Rs. m) 3,76,111 4,13,744 3,76,111 4,13,744
% Chng. - - SUNP 1QFY21 revenue were lower than our estimate because of US specialty
EBITDA (Rs. m) 82,556 90,817 82,556 90,817 and Taro sales while adj. EBITDA margin positively surprised at 23.1% (PLe
% Chng. - -
EPS (Rs.) 22.8 26.7 22.8 26.7 :20.4%) due to 1) lower R&D spend (5.6% of sales v/s 6.4% QoQ) and 2) lower
% Chng. - - SGA costs led by travel restriction on employees and lower marketing
expense (21% of sales v/s 29% QoQ). We believe even after Taro’s settlement
Key Financials - Consolidated with DOJ for generic price matters, US biz still has several concern related to
Y/e Mar FY20 FY21E FY22E FY23E
1) inconsistent performance of US specialty products, 2) Taro’s declining
Sales (Rs. bn) 323 342 376 414
EBITDA (Rs. bn) 65 75 83 91 revenue trend and gross margin due to erosion in derma portfolio, 3) lack of
Margin (%) 20.0 22.0 22.0 22.0 key approvals due to regulatory issues in Halol and 4) further R&D in Ilumya
PAT (Rs. bn) 34 47 55 64
for new indications. With only India formulations contributing to growth while
EPS (Rs.) 14.3 19.7 22.8 26.7
Gr. (%) 15.0 37.6 15.8 17.1 other regions lacking in consistent performance, we downgrade our rating to
DPS (Rs.) 5.8 2.0 2.0 2.0 Reduce (earlier Hold) but retain TP at Rs479 (PE 21x of FY22E).
Yield (%) 1.1 0.4 0.4 0.4
RoE (%) 7.9 11.3 13.5 14.0
RoCE (%) 8.5 10.6 12.4 13.6 Revenue lower but EBITDAM higher due to travel restriction and lower
EV/Sales (x) 3.8 3.7 3.3 2.9
EV/EBITDA (x) 19.1 16.9 14.9 13.1
marketing spend: Revenue declined 10% YoY and 8% QoQ to Rs74.6bn (PLe
PE (x) 37.2 27.0 23.3 19.9 Rs83.5bn) while adj. EBITDA declined 5% YoY and grew 37% QoQ to Rs17.2bn
P/BV (x) 2.8 3.3 3.0 2.6
(PLe 16.0bn). Adj. EBITDA margin was 23.1% (PLe 20.4%) v/s 22% YoY and
15.5% QoQ. PBT declined 8% YoY while QoQ grew 73% to Rs14.4b (PLe
Key Data SUN.BO | SUNP IN Rs11.3bn). Adj. PAT (before extra ord. item and MI) was Rs12.0bn (PLe Rs8.6bn).
52-W High / Low Rs.541 / Rs.312 There was exceptional loss and provision made of Rs36.3bn due to Taro DOJ
Sensex / Nifty 37,607 / 11,073
Market Cap Rs.1,276bn/ $ 17,051m matter which led SUNP to report net loss of Rs16.5bn.
Shares Outstanding 2,399m
3M Avg. Daily Value Rs.10143.82m
Conference call and key highlights:
Shareholding Pattern (%)  US Formulations (Including Taro): Total US sales declined 25% QoQ to
Promoter’s 54.69 US$282m led by 33% QoQ decline of Taro (US$118m) while specialty
Foreign 12.70
Domestic Institution 20.10 revenues were US$78m v/s US$126m Q4FY20. Taro gross profit and margin
Public & Others 12.51
were all time low at US$65m and 55% of sales. Specialty business was
Promoter Pledge (Rs bn) 10.35
impacted due to lockdown and primarily due to lower revenue from Levulan
and Ilumya. Even with relaxation in lockdown, many medical practitioners for
Stock Performance (%)
ophthalmic and derma have not returned to their clinics.
1M 6M 12M
Absolute 12.4 22.4 24.6
Relative 4.4 32.6 24.2  Weak outlook on US Generic: SUNP highlighted pricing environment would
continue to remain challenging (specially for Taro business). While there are
Surajit Pal 95 pending ANDAs, commercialization of these products would be challenging
surajitpal@plindia.com | 91-22-66322259 as important products are filed from Halol facility.
Tausif Shaikh
tausifshaikh@plindia.com | 91-22-66322246

August 2, 2020 1
 Sun Pharmaceutical Industries

 Halol regulatory update: In Q3FY20, Halol plant went under cGMP inspection
and received 8 observations including one issue of data integrity. The plant is
under OAI status and its remediation work is likely to complete soon. SUNP
continues to update USFDA on regular basis but the regulator hasn’t given any
indication of near-term inspection (virtual).

 India Business: Growth was only 3% YoY due to COVID led lockdown. SUNP
launched 2 products under lockdown and expanded its field force as per
guidance. Two products related to COVID are under clinical trial for Indian
market only and the recruitment process for patients has been completed.
From June FY21, medical practitioners are gradually return to field visit of
doctors and distributors.

 EM: Revenue were US$173m v/s US$187m QoQ. Q4FY20.The decline was
led by South Africa tender biz and lower realization from currency devaluation
while other regions were stable.

 ROW and API business: ROW revenue was US$136m v/s US$155m QoQ
due to lower biz in Japan, while API segment grew 20% YoY.

1Q21 Result Overview (Rs mn): Revenue lower due to US biz, PAT impacted due to one-time settlement.
Y/e March Q1FY21 Q1FY20 YoY gr. (%) Q4FY20 FY21E FY20 YoY gr. (%)
Net Sales 74,672 82,593 (9.6) 80,780 3,22,018 3,23,252 (0.4)
Raw Material 19,696 24,578 (19.9) 23,048 84,006 92,305 (9.0)
% of Net Sales 26.4 29.8 28.5 26.1 28.6
Personnel Cost 17,590 15,404 14.2 16,519 67,060 63,624 5.4
% of Net Sales 23.6 18.7 20.4 20.8 19.7
Others 20,131 24,479 (17.8) 28,652 1,02,992 1,02,549 0.4
% of Net Sales 27.0 29.6 35.5 32.0 31.7
Total Expenditure 57,417 64,461 (10.9) 68,219 2,54,058 2,58,477 (1.7)
EBITDA 17,255 18,132 (4.8) 12,561 67,960 64,774 4.9
Margin (%) 23.1 22.0 15.5 21.1 20.0
Depreciation 4,959 4,571 8.5 5,754 21,037 20,528 2.5
EBIT 12,295 13,560 (9.3) 6,807 46,924 44,247 6.1
Other Income 2,719 3,281 (17.1) 2,091 10,139 11,483 (11.7)
Interest 520 1,041 (50.1) 518 2,993 3,027 (1.1)
PBT 14,494 15,801 (8.3) 8,381 54,070 52,702 2.6
Total Taxes 2,459 1,461 68.4 831 9,187 8,228 11.7
ETR (%) 17.0 9.2 9.9 17.0 15.6
PAT 12,035 14,340 (16.1) 7,550 44,883 44,474 0.9
Minority Interest (7,742) 1,139 945 (5,127) 4,219
Exceptional items (36,333) 674 (2,606) - (2,606)
Adj Pat (16,556) 13,875 (219.3) 3,998 50,010 37,649 32.8
Source: Company, PL

August 2, 2020 2
 Sun Pharmaceutical Industries

Major Sources of Revenues

Major sources of income Q1FY21 Q1FY20 YoY gr. (%) Q4FY20 FY21E FY20 YoY gr. (%)
API 5,537 4,612 20.1 4,834 20,543 19,159 7.2
% of Net Sales 7.4 5.6 6.0 6.4 5.9

Formulation 68,708 77,688 (11.6) 75,528 2,99,893 3,02,780 (1.0)

% of Net Sales 92.0 94.1 93.5 93.1 93.7
India 23,884 23,137 3.2 23,648 1,05,246 97,102 8.4
% of Net Sales 32.0 28.0 29.3 32.7 30.0
International 44,824 54,551 (17.8) 51,880 1,94,647 2,05,678 (5.4)
% of Net Sales 60.0 66.0 64.2 60.4 63.6
US formulations 21,364 29,474 (27.5) 27,129 1,07,614 1,05,425 2.1
% of Net Sales 28.6 35.7 33.6 33.4 32.6
ROW formulations 23,460 25,077 (6.4) 24,751 87,033 1,00,253 (13.2)
% of Net Sales 31.4 30.4 30.6 27.0 31.0

Others 426 293 45.2 417 1,580 1,312 20.4

Total Sales 74,671 82,593 (9.6) 80,779 3,22,015 3,23,252 (0.4)

Source: Company, PL

Domestic (Rs mn) and YoY Gr (%).

Sales (Rs m) YoY gr (%) (RHS)

30,000 114.7 140.0

120.0
25,000 100.0
20,000 80.0
35.2 60.0
15,000 22.2 40.0
7.6 11.1 5.1 9.9 10.5 5.9 2.4 7.2 7.5 12.6
3.2 20.0
-5.0
10,000 -16.3 0.0
5,000 -43.9 -20.0
-40.0
- -60.0
Q1FY17
Q2FY17
Q3FY17
Q4FY17
Q1FY18
Q2FY18
Q3FY18
Q4FY18
Q1FY19
Q2FY19
Q3FY19
Q4FY19
Q1FY20
Q2FY20
Q3FY20
Q4FY20
Q1FY21

Source: Company, PL

US Generic (US$ mn) & QoQ Gr (%)

Sales (US$ m) QoQ gr (%) (RHS)

600 20.1 30.0

500 12.2 20.0

5.3 7.1
3.6 3.3 3.2 10.0
400 -3.4 -0.9 -4.6 -2.1 -1.9
-8.6 -10.0 0.0
300
-20.0 -10.0
200 -24.8
-20.0
-33.1
100 -30.0
- -40.0
Q2FY17

Q4FY17

Q1FY18

Q2FY18

Q3FY18

Q1FY19

Q2FY19

Q3FY19

Q4FY19

Q2FY20

Q4FY20

Q1FY21
Q1FY17

Q3FY17

Q4FY18

Q1FY20

Q3FY20

Source: Company, PL

August 2, 2020 3
 Sun Pharmaceutical Industries

Taro Sales (US$ mn) & QoQ Gr (%)

Taro Sales (US$ m) QoQ gr (%) (RHS)

300 22% 30%

18%
250 13% 11% 20%
3% 5% 3% 2% 0% 10%
200 -1% -2%-4%
-11% -9% -10% -8% 0%
150 -12% -12% -12%
-18% -10%
100
-20%
-33%
50 -30%
0 -40%

Q2FY16
Q3FY16
Q4FY16

Q2FY17
Q3FY17
Q4FY17

Q2FY18
Q3FY18
Q4FY18

Q3FY19
Q4FY19
Q1FY20

Q3FY20
Q4FY20
Q1FY21
Q1FY16

Q1FY17

Q1FY18

Q1FY19
Q2FY19

Q2FY20
Source: Company, PL

Taro Gross Profit (US$ mn) and Gross margin (%)

Taro Gross Profit (US$) GP Margin %

78%

77%

76%

74%
73%

72%

200 90%

68%
68%

67%

66%

66%
66%

65%

64%
63%
180 80%

58%

55%
160 70%
140 60%
120 50%
100
80 40%
60 30%
40 20%
20 10%
- 0%
Q1FY17

Q2FY17

Q4FY17

Q1FY18

Q3FY18

Q4FY18

Q2FY19

Q3FY19

Q1FY20

Q2FY20

Q4FY20

Q1FY21
Q3FY17

Q2FY18

Q1FY19

Q4FY19

Q3FY20
Source: Company, PL

ROW Sales (Rs mn) and Gr QoQ (%)

ROW Sales (Rs m) YoY gr (%) (RHS)

30,000 16.3 16.1 20.0

25,000 10.6 15.0

8.0 9.1
20,000 10.0
5.3
3.8
15,000 1.3 1.4 1.3 1.6 5.0
0.2 -0.7
-2.6 -2.2
10,000 0.0
-6.3 -5.2
5,000 -5.0

- -10.0
Q3FY17
Q4FY17
Q1FY18

Q4FY18
Q1FY19
Q2FY19
Q3FY19

Q2FY20
Q3FY20
Q4FY20
Q1FY17
Q2FY17

Q2FY18
Q3FY18

Q4FY19
Q1FY20

Q1FY21

Source: Company, PL

August 2, 2020 4
 Sun Pharmaceutical Industries

EBITDA (Rs mn) and EBITDA Margin (%)

EBITDA (Rs m) Margin (%) (RHS)

30,000 40.0
33.4 34.3
28.9 35.0
25,000
30.0
20,000 22.621.023.2 22.0 23.1
20.0 21.2 21.1 20.220.4 25.0
18.1 17.1
15,000 15.5 20.0
12.7
15.0
10,000
10.0
5,000
5.0
- -

Q1FY17
Q2FY17
Q3FY17
Q4FY17
Q1FY18
Q2FY18
Q3FY18
Q4FY18
Q1FY19
Q2FY19
Q3FY19
Q4FY19
Q1FY20
Q2FY20
Q3FY20
Q4FY20
Q1FY21
Source: Company, PL

R&D Expense (Rs mn) and % of sales

R & D Exp (Rs m) % of Sales (RHS)

8,000 12.0
7,000 9.6 9.2
8.8 10.0
7.7 8.1 8.1
6,000 7.1 7.0 7.4 7.0 7.6
7.0 6.5 6.8 6.4 6.6 6.4 8.0
5,000 5.9 6.0 5.6
4,000 4.9 6.0
3,000
4.0
2,000
2.0
1,000
- -
Q1FY16
Q2FY16

Q4FY16

Q2FY17
Q3FY17

Q1FY18

Q3FY18

Q1FY19
Q2FY19

Q4FY19

Q2FY20

Q4FY20
Q1FY21
Q3FY16

Q1FY17

Q4FY17

Q2FY18

Q4FY18

Q3FY19

Q1FY20

Source: Company, PL Q3FY20

August 2, 2020 5
 Sun Pharmaceutical Industries

Financials
Income Statement (Rs m) Balance Sheet Abstract (Rs m)
Y/e Mar FY20 FY21E FY22E FY23E Y/e Mar FY20 FY21E FY22E FY23E

Net Revenues 3,23,252 3,42,072 3,76,111 4,13,744 Non-Current Assets

YoY gr. (%) 15.0 5.8 10.0 10.0
Cost of Goods Sold 92,305 90,991 1,00,045 1,10,056 Gross Block 2,71,713 2,69,259 2,80,259 2,91,259
Gross Profit 2,30,947 2,51,081 2,76,065 3,03,688 Tangibles 1,82,880 1,77,426 1,85,426 1,93,426
Margin (%) 71.4 73.4 73.4 73.4 Intangibles 88,834 91,834 94,834 97,834
Employee Cost 63,624 65,678 72,213 79,439
Other Expenses 19,252 29,076 31,969 35,168 Acc: Dep / Amortization 1,08,058 1,30,588 1,54,815 1,76,910
Tangibles 75,770 91,592 1,07,443 1,21,969
EBITDA 64,774 75,085 82,556 90,817 Intangibles 32,289 38,997 47,372 54,941
YoY gr. (%) 7.2 15.9 10.0 10.0
Margin (%) 20.0 22.0 22.0 22.0 Net fixed assets 1,63,655 1,38,671 1,25,444 1,14,349
Tangibles 1,07,110 85,834 77,983 71,457
Depreciation and Amortization 20,528 22,530 24,226 22,096 Intangibles 56,545 52,837 47,461 42,892

EBIT 44,247 52,555 58,330 68,721 Capital Work In Progress 12,203 11,825 11,527 11,303
Margin (%) 13.7 15.4 15.5 16.6 Goodwill 64,815 64,815 64,815 64,815
Non-Current Investments 53,513 48,390 46,025 54,471
Net Interest 2,993 3,116 1,098 786 Net Deferred tax assets 31,172 31,775 32,462 33,261
Other Income 11,483 10,909 11,454 12,027 Other Non-Current Assets 40,043 38,971 40,296 41,703

Profit Before Tax 52,737 60,347 68,686 79,962 Current Assets

Margin (%) 16.3 17.6 18.3 19.3 Investments 48,974 31,833 33,424 35,096
Inventories 78,750 82,171 85,932 90,069
Total Tax 11,595 9,052 9,616 11,195 Trade receivables 94,212 1,04,965 1,17,470 1,30,358
Effective tax rate (%) 22.0 15.0 14.0 14.0 Cash & Bank Balance 64,876 50,821 66,161 88,561
Other Current Assets 18,953 16,110 17,721 19,493
Profit after tax 41,142 51,295 59,070 68,767 Total Assets 6,82,524 6,29,737 6,51,318 6,94,248
Minority interest 4,219 4,073 4,378 4,711
Share Profit from Associate - - - - Equity
Equity Share Capital 2,399 2,399 2,399 2,399
Adjusted PAT 34,317 47,222 54,692 64,057 Other Equity 4,50,245 3,78,573 4,27,459 4,85,709
YoY gr. (%) 15.0 37.6 15.8 17.1 Total Networth 4,52,645 3,80,973 4,29,858 4,88,108
Margin (%) 10.6 13.8 14.5 15.5
Extra Ord. Income / (Exp) - - - - Non-Current Liabilities
Long Term borrowings 20,289 21,304 18,108 15,392
Reported PAT 34,317 47,222 54,692 64,057 Provisions 5,110 5,314 4,252 3,401
YoY gr. (%) 15.0 37.6 15.8 17.1 Other non current liabilities 7,809 8,590 6,013 4,209
Margin (%) 10.6 13.8 14.5 15.5
Current Liabilities
Other Comprehensive Income - - - - ST Debt / Current of LT Debt 55,494 56,604 36,792 23,915
Total Comprehensive Income 34,317 47,222 54,692 64,057 Trade payables 40,937 51,545 54,613 60,078
Equity Shares O/s (m) 2,399 2,399 2,399 2,399 Other current liabilities 60,632 62,321 54,969 48,576
EPS (Rs) 14.3 19.7 22.8 26.7 Total Equity & Liabilities 6,82,524 6,29,737 6,51,318 6,94,248
Source: Company Data, PL Research Source: Company Data, PL Research

August 2, 2020 6
 Sun Pharmaceutical Industries

Cash Flow (Rs m) Key Financial Metrics

Y/e Mar FY20 FY21E FY22E FY23E Year
Y/e Mar FY20 FY21E FY22E FY23E

PBT 50,096 60,347 68,686 79,962 Per Share(Rs)

Add. Depreciation 20,528 22,530 24,226 22,096 EPS 14.3 19.7 22.8 26.7
Add. Interest 2,993 3,116 1,098 786 CEPS 22.9 29.1 32.9 35.9
Less Financial Other Income 11,483 10,909 11,454 12,027 BVPS 188.7 158.8 179.2 203.4
Add. Other (85,347) (1,15,502) (26,766) (31,213) FCF (11.0) (20.8) 8.7 11.5
Op. profit before WC changes (11,731) (29,509) 67,245 71,631 DPS 5.8 2.0 2.0 2.0
Net Changes-WC 7,617 2,331 (23,498) (21,255) Return Ratio(%)
Direct tax (12,077) (12,077) (12,077) (12,077) RoCE 8.5 10.6 12.4 13.6
Net cash from Op. activities (16,191) (39,254) 31,670 38,299 ROIC 8.5 10.9 13.5 15.5
Capital expenditures (10,092) (10,622) (10,702) (10,776) RoE 7.9 11.3 13.5 14.0
Interest / Dividend Income - - - - Balance Sheet
Others - 16,062 - - Net Debt : Equity (x) (0.1) 0.0 (0.1) (0.2)
Net Cash from Invt. activities (10,092) 5,440 (10,702) (10,776) Net Working Capital (Days) 149 145 144 141
Issue of share cap. / premium - - - - Valuation(x)
Debt changes 11,651 46,604 - - PER 37.2 27.0 23.3 19.9
Dividend paid (16,693) (5,806) (5,806) (5,806) P/B 2.8 3.3 3.0 2.6
Interest paid (2,993) (3,116) (1,098) (786) P/CEPS 27.0 34.3 38.8 42.4
Others - - - - EV/EBITDA 19.1 16.9 14.9 13.1
Net cash from Fin. activities (8,035) 37,682 (6,904) (6,592) EV/Sales 3.8 3.7 3.3 2.9
Net change in cash (34,318) 3,868 14,063 20,931 Dividend Yield (%) 1.1 0.4 0.4 0.4
Free Cash Flow (26,283) (49,876) 20,968 27,523 Source: Company Data, PL Research
Source: Company Data, PL Research

Quarterly Financials (Rs m)

Key Operating Metrics
Y/e Mar Q2FY20 Q3FY20 Q4FY20 Q1FY21
Y/e Mar FY20 FY21E FY22E FY23E
Net Revenue 79,492 80,387 80,780 74,672
Formulations 2,91,897 3,22,473 3,53,524 3,87,711
YoY gr. (%) 16.1 5.0 14.7 (9.6)
India Formulations 97,102 1,04,870 1,13,260 1,22,321
Raw Material Expenses 22,679 22,000 23,048 19,696
US Formulations 1,02,221 1,13,247 1,23,943 1,35,717
Gross Profit 56,813 58,387 57,732 54,976
ROW Formulations 92,574 1,04,356 1,16,321 1,29,673
Margin (%) 71.5 72.6 71.5 73.6
APIs 19,159 21,329 24,484 28,112
EBITDA 16,071 16,434 12,561 17,255
Source: Company Data, PL Research
YoY gr. (%) 11.6 (20.6) 40.0 (4.8)
Margin (%) 20.2 20.4 15.5 23.1
Depreciation / Depletion 4,733 5,470 5,754 4,959
EBIT 11,338 10,964 6,807 12,295
Margin (%) 14.3 13.6 8.4 16.5
Net Interest 839 630 518 520
Other Income 3,750 2,361 2,091 2,719
Profit before Tax 14,249 12,695 8,381 14,494
Margin (%) 17.9 15.8 10.4 19.4
Total Tax 2,660 3,276 831 2,459
Effective tax rate (%) 18.7 25.8 9.9 17.0
Profit after Tax 11,589 9,419 7,550 12,035
Minority interest 1,033 1,102 945 (7,742)
Share Profit from Associates - - - -
Adjusted PAT 10,641 9,135 3,998 (16,556)
YoY gr. (%) (586.3) (3.5) (37.1) (219.3)
Margin (%) 13.4 11.4 4.9 (22.2)
Extra Ord. Income / (Exp) - - - -
Reported PAT 10,641 9,135 3,998 (16,556)
YoY gr. (%) (586.3) (3.5) (37.1) (219.3)
Margin (%) 13.4 11.4 4.9 (22.2)
Other Comprehensive Income - - - -
Total Comprehensive Income 10,641 9,135 3,998 (16,556)
Avg. Shares O/s (m) - - - -
EPS (Rs) 4.4 3.5 2.8 8.2
Source: Company Data, PL Research

August 2, 2020 7
 Sun Pharmaceutical Industries

Price Chart Recommendation History

(Rs)
No. Date Rating TP (Rs.) Share Price (Rs.)
700
1 31-Jul-20 Hold 479 511

606 2 08-Jul-20 Hold 479 483

3 28-May-20 Hold 467 450
512
4 21-May-20 Hold 436 466
418 5 18-Apr-20 Hold 436 457
6 14-Apr-20 Hold 412 454
325
Jul - 19

Jul - 20
Aug - 17

Aug - 18
Feb - 18

Jan - 19

Jan - 20
7 07-Feb-20 Reduce 412 431
8 04-Feb-20 Reduce 396 418
9 09-Jan-20 Reduce 396 439
10 03-Jan-20 Reduce 396 445

Analyst Coverage Universe

Sr. No. Company Name Rating TP (Rs) Share Price (Rs)
1 Aurobindo Pharma Accumulate 838 802
2 Cadila Healthcare Reduce 329 360
3 Cipla Reduce 542 634
4 Dr. Lal PathLabs Sell 895 1,762
5 Dr. Reddy's Laboratories Hold 4,326 4,306
6 Eris Lifesciences BUY 576 446
7 Glenmark Pharmaceuticals Sell 365 419
8 Indoco Remedies Hold 219 208
9 Ipca Laboratories BUY 1,839 1,636
10 Jubilant Life Sciences Sell 414 703
11 Lupin BUY 1,001 865
12 Sun Pharmaceutical Industries Hold 479 511
13 Thyrocare Technologies Sell 307 522

PL’s Recommendation Nomenclature (Absolute Performance)

Buy : > 15%
Accumulate : 5% to 15%
Hold : +5% to -5%
Reduce : -5% to -15%
Sell : < -15%
Not Rated (NR) : No specific call on the stock
Under Review (UR) : Rating likely to change shortly

August 2, 2020 8
 Sun Pharmaceutical Industries

ANALYST CERTIFICATION
(Indian Clients)
We/I, Mr. Surajit Pal- PGDBA, CFA, M.Com, Mr. Tausif Shaikh- BA, Major in Economics, Financial Management Research Analysts, authors and the names subscribed to this report,
hereby certify that all of the views expressed in this research report accurately reflect our views about the subject issuer(s) or securities. We also certify that no part of our compensation
was, is, or will be directly or indirectly related to the specific recommendation(s) or view(s) in this report.

(US Clients)
The research analysts, with respect to each issuer and its securities covered by them in this research report, certify that: All of the views expressed in this research report accurately
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August 2, 2020 AMNISH

Digitally signed by AMNISH AGGARWAL
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ou=organisation, cn=AMNISH AGGARWAL,
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Date: 2020.08.02 21:29:45 +05'30'