Sun Pharma: 700-680 May Be A Good Demand Zone Despite Oil & Gas Foray By The Promoter; US FDA Resolution Of "Ghost Of Halol" May Be The Key Drivers In The Near Term

Trading Idea: Sun Pharma

CMP: 738

Either buy around 720-710 OR in dips 690-680

TGT: 780*-802-841*-871-900-965*-995-1020-1055*-1075 (1-3/6M)

TSL< 700 OR < 670

Note: Consecutive closing (3 days) below 670 zone for any reason, Sun Pharma may further fall up to 650*-630-610-580*-555-515 & 500*-475 in the near to long term (alternative worst bear case scenario).

For Sun Pharma: Consolidated Basis

Q4FY16 TTM EPS: 19.60 (Actual)

Projected FWD EPS: 23.75-28.45-33.95 (FY:17-19/Estimated)

Average PE: 30

Median value: 588-712-853-1018 (FY:16-19)

(keeping in mind the proposed oil & gas venture by the promoter in his personal capacity-Sun Petro and US FDA issues; although worst may be over for this chapter as Indian companies are taking serious resolution to fix this "never ending" fiasco)

As par BG metrics & current market volatility:

Present median valuation may be around: 685 (FY:16/TTM)

Projected fair value might be around: 755-825-900 (FY:17-19/TTM)

SUNPHARMA	EPS	BV	P/E	Low	High	Median	200-DEMA	10-DEMA
Q4FY16/TTM	19.6	106.45	30	696.50	668.93	682.72	825.03	761.01
FY17/FWD	23.75	117.25	30	766.70	736.36	751.53	825.03	761.01
FY18/FWD	28.45	128.95	30	839.14	805.93	822.54	825.03	761.01
FY19/FWD	33.95	141.85	30	916.67	880.39	898.53	825.03	761.01

Analytical Charts: