Sun Pharma: A Vitamin Shot to Domestic Market Leadership - Innovcare Deal Is Value Accretive!

研报英文原文证据摘录

Sun Pharma: A Vitamin Shot to Domestic Market Leadership - Innovcare Deal Is Value Accretive!

NSTEIN FLASHMAIL

22 June 2026

Nandan Kulkarni

+91 22 6842 1436

India Healthcare nandan.kulkarni@bernsteinsg.com

Sun Pharmaceutical Industries Ltd Shirsh Sawarna

+91 226 842 1492

Rating shirsh.sawarna@bernsteinsg.com

Outperform

Price Target

SUNP.IN 2,235.00 INR

Sun Pharma: A Vitamin Shot to Domestic Market Leadership -

Innovcare Deal Is Value Accretive!

Today, Sun Pharma announced acquisition of Innovcare at ₹2.7 Bn all-cash. We believe the deal is value-accretive over four year

horizon and expect Innovcare to clock ~₹2Bn in revenue by FY30 in the hands of Sun Pharma- a healthy 30-32% rate of

return on investment. The target is an asset-light, branded nutraceuticals platform with exposure to bone and joint health, women’s

health, sexual wellness and cosmeceuticals. While Innovcare stagnated at only 8% growth over FY24-FY26 versus 16.1% YoY

growth for this segment in domestic pharma market, this underperformance is precisely the value unlock by Sun to the deal. We

believe Sun’s largest field force, distribution depth and therapy leadership in bone-joints, gynecology will boost Innovcare basket

to 18-20% growth over the next three years. While this is less than one percent of Sun’s domestic revenue of ~207Bn in FY26, the

portfolio synergy is strategic and signals one more acquisition-led growth to sustain Sun’s IPM leadership.

EXPECTED CHANGE TO CONSENSUS EARNINGS

>-10% -7% -5% -3% No Change +3% +5% +7% >+10%

Sun Pharma has signed an agreement to acquire 100% of Innovcare Lifesciences for an all-cash consideration of ~₹2.7Bn, implying 2.9x

FY26 revenue. Innovcare is an India-only branded healthcare platform engaged in marketing and distribution of pharmaceutical drugs,