Buy Sun Pharma; target of Rs. 1835: IIFL

Bangalore: IIFL is bullish on Sun Pharmaceutical and has recommended buy rating on the stock with a target of Rs. 1835. According to IIFL, Sun Pharmaceuticals has bounced back strongly after testing its 100-DMA near its falling resistance line. The falling resistance line also correspond to short term breakout levels at Rs. 1,785, above which stock might attempt to test its all time high of Rs. 1,853.

Sun Pharmaceutical Industries (Sun Pharma) is an international specialty pharmaceutical company. The company's product portfolio consists of four categories of products: India branded generics, US generics, international branded generics and active pharmaceutical ingredients (API). The products of the company are prescribed in therapy areas like cardiology, psychiatry, neurology, gastroenterology, diabetology and respiratory. The company's subsidiaries include Sun Pharma Global Inc. BVI., Sun Pharma Global-FZE, Sun Pharmaceutical (Bangladesh), Sun Pharmaceutical Peru S.A.C. and Sun Farmaceutica-Brazil. In November 2008, the Company, along with its subsidiaries, completed the acquisition of Chattem Chemicals.


IIFL says, positive crossover in Relative Strength Index (RSI) also supports buying argument after breakout is confirmed on price chart. With the recommendation target price of Rs. 1835, if the stock is bought at Thursday's closing price of 1775.35, the percentage of gain would be 3.25 percent.