Brokerages were mixed on Sun Pharmaceutical Industries even after the company declared strong earnings in its June quarter results as certain business segments showed a visible slowdown.

What Happened: Sun Pharma reported a 40% rise in net profit to ₹2,836 crore from ₹2,023 crore in the same quarter last year. Its revenue from operations gained 6% to ₹12,653 crore, while EBITDA rose 8.3% to ₹3,608 crore. 

India formulation sales increased 16.4% to ₹4,144 crore, which made up 33.1% of the consolidated sales. U.S. formulation sales fell slightly to $466 million (around ₹3,902 crore) contributing 31.1% to the consolidated sales. Global speciality sales rose 14.7% to $266 million (around ₹2,227 crore), bringing in 17.7% of total sales. 

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Brokerage Views: Jefferies maintained a "buy" call on the stock and raised its target price to ₹2,000. The company's EBITDA beat expectations from lower operating expenses and the company has a strong outlook, the brokerage said.

Noting that speciality sales continue to drive growth, the research firm hiked FY25-27 earnings per share by 2%-3%, factoring in revenue from FY26 for Leqselvi, which was recently approved by the U.S. Food and Drug Administration (USFDA). But the medicine's launch timeline is uncertain due to a recent motion filed against its approval, the firm added. 

Goldman Sachs maintained a "sell" call on Sun Pharma while increasing the target price to ₹1,450. The company's India growth masked a slowdown in specialty drugs and valuations are not factoring in multiple risks, the research firm said. Global speciality business continues to see slowdown and the firm’s domestic business growth has softened while U.S. generic business is sluggish, the brokerage added. 

Nomura maintained a "neutral" call with a target price of ₹1,444. While Q1 sales came below expectations, EBITDA was a beat. India sales were ahead of estimates while U.S. and Global Speciality were below, according to the brokerage.

the analysts at the firm pointed out that management said it was not material that gRevlimid's contribution didn't increase quarter on quarter. Sun Pharma’s management also expects domestic growth to be in line with or higher than broader market growth. 

Price Action: Sun Pharma shares were trading in the black, up 0.40% at ₹1,722 after opening in the red on Friday morning.

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