Specialty products segment key to Sun Pharma's growth prospects

Pricing pressure in US, lockdown may dent near-term prospects

The Sun Pharma stock gained 1.38 per cent on Thursday, even as the firm posted a weaker-than-expected performance for the March quarter. This was on account of the specialty products segment, which put up a better-than-expected show. This segment is vital to Sun Pharma’s growth prospects.

The firm refrained from providing growth guidance for FY21, considering the prevalent uncertainty. Though its US subsidiary Taro surpassed expectations in the quarter, pricing pressure in the overall portfolio is keeping analysts cautious.

Further, with some softening in revenue expected in the near term given the lockdown, analysts have cut their estimates. A ramp-up