Sun Pharma is in the business of manufacturing, developing and marketing a wide range of branded and generic formulations and Active Pharmaceutical Ingredients (APIs). It is one of the blue chip pharma companies of India. Why should you Buy Sun Pharma?
1) Stock witnessed a wonderful breakout on the monthly chart after a long time, in sync with a breakout on the Nifty Pharma Index
2) The Nifty index is at stretched valuations, and the recent rally can witness profit booking. Hence, Pharma can act as the best defensive Bet in such market
3) The P/E ratio of Sun Pharma is at 29, whereas all other blue chip in Pharma trading around 37-38 times their earnings, hence fundamentally also the stock is undervalued.
4) Hence, we recommend a BUY on SUNPHARMA at 530 levels, with Target of 600-680-750, resulting in upside of 40% in next 4-6 months.
Here is the chart of Sun Pharma breaking out of Monthly chart -
HAPPY INVESTING (The thoughts mentioned above are my personal, please speak to your registered financial advisor before taking any action on the buy or sell side)
@sunpharma @buysunpharma @pharmastockstobuy @bestpharmastock