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Indian benchmark indices Sensex and the Nifty 50 closed in positive territory on Thursday, snapping their two-day losing run on fag-end buying in select blue-chip stocks. The Sensex closed 321 points, or 0.39%, higher at 81,633.02. The Nifty 50 settled at 24,833.60, up 81 points, or 0.33%. The Bank Nifty also saw a strong recovery, ending 129.05 points higher at 55,546.05.

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● Why it’s recommended: Diverse business model and reputation for quality research

● Key metrics: P/E: 18.83, 52-week high: ₹ 1,064.00, volume: ₹ 308.39 crore

● Technical analysis: Reclaimed 200-DMA

● Risk factors: Regulatory and legal risks, reputation, and ethical risks

● Buy at: ₹ 809.95

● Target price: ₹ 950 in three months

● Stop loss: ₹ 760

● Why it’s recommended: Focused retail and SME lending strategy, granular, and secured loan book

● Key metrics: P/E: 7.31, 52-week high: ₹ 164, volume: ₹ 44.15 crore

● Technical analysis: cup-with-handle breakout

● Risk factors: Moderate scale and limited market presence, vulnerability to sme credit cycles

● Buy at: ₹ 145.50

● Target price: ₹ 163 in three months

● Stop loss: ₹ 137

In FY25, their mutual fund revenue grew by 25%, and transaction volume grew 49% to 89.2 crore from 59.8 crore, and new SIP registrations surged 51% to 400 lakh, and the SIP book growth stood at 5.7 crore, an 18% growth YoY. Unique investors rose to 4.04 crore, up 26%, and live investor folios stood at 9.4 crore, a 30% growth YoY.

Further, the equity AUM grew by 29% YoY to ₹24.8 trillion, with a 66.1% market share and 86% growth in equity sales to ₹3.6 trillion YoY. Furthermore, the systematic transactions processed grew by 43% to 72.3 crore.

Their non-mutual fund assets revenue grew 25% YoY, and non-MF includes a variety of services such as CAMS Pay, CAMS Alternatives, CAMS Repositories, CAMS KRA, CAMS Finserv, Think360, and CAMS NPS. In FY25, the non-mutual fund business saw strong growth in revenue YoY.

For FY25, the total revenue grew by 25% YoY to ₹1,475 crore from ₹1,177 crore in FY24, operating EBITDA stood at ₹656 crore, a 46% jump YoY, and PAT jumped by 33% YoY to ₹465 crore from ₹351 crore in FY24.

In addition, the company focuses on cost and expects less than 10% for FY26. EBITDA margins for FY26 would be around 20% for non-MF and 44% for the mutual fund segment. On the capex side, the company expects ₹100 crore on re-architecture and ₹70 crore on BAU capex, including regulatory air gap data centers and tech upgrades.

Additionally, with the mutual fund industry's net inflows and market gains of ₹8.15 lakh crore, the mutual fund sector in India achieved a 23.11% increase in AUM, reaching ₹65.74 lakh crore by March 2025. At the end of April 2025, the AUM stood at ₹69.99 lakh crore. It has grown about six and a half-fold in a span of 10 years.

Further, debt funds had a resurgence, while equity-oriented schemes witnessed the largest inflows of ₹4.17 lakh crore. Folios increased 32% year over year to reach 23.45 crore, indicating an increase in investor involvement in all categories.

Also Read: The temperament trap: Why your personality might be your portfolio's biggest enemy

Sun Pharma is spread over 100 countries. In FY25, the gross sales stood at ₹52,041.2 crore, a 9% growth YoY. EBITDA stood at ₹15,271.7 crore, up 17.3%, and adjusted net profit for FY25 was ₹11,984.4 crore, a 14% growth YoY. The company’s total dividend for FY25 was ₹16 per share, and it announced a final dividend of ₹5.5 per share.

In India, formulation sales stood at ₹16,923 crore, a 14% rise YoY. US formulation sales stood at US$ 1,921 million, up 3.6%, and global specialty sales were at US$ 1,216 million, up 17%. In emerging markets, formulation sales were at US$ 1,114 million, up 7%, and the rest of the world's formulation sales grew 4.5% to US$ 847 million.

Further, the company has increased its API by 11% to ₹2,129.2 crore, and external sales were at ₹533 crore for Q4 FY25, up 28%. On R&D, the company has invested ₹3,248.4 crore for FY25, or 6.2% of sales, and its specialty R&D pipeline includes 8 novel entities in the clinical stage. The company received approval for 542 ANDAs in the US, and 117 filings for ANDAs await approval from the US.

This includes 33 tentative approvals. Additionally, the portfolio includes 57 approved NDAs, while 13 NDAs await US FDA approval. For the quarter, 9 ANDAs were filed, and 1 ANDA approval was received.

Global specialty pipeline, Ilumya, for psoriatic arthritis, is in Phase 3, with the next milestone by H2CY25. Fibromun for soft tissue sarcoma and glioblastoma is in Phase 3 & 2, and SCD-044 for atopic dermatitis and psoriasis is currently in Phase 2 and will be achieved during H1CY25.

GL0034 for type 2 diabetes, completed starts during H2CY25, and MM-II for pain in osteoarthritis is completed, and planning to enter a partnership for commercialization.

The long body candles seen in the last two trading session indicate more upside in store for this counter.

Raja Venkatraman is co-founder, NeoTrader. His Sebi-registered research analyst registration no. is INH000016223.

MarketSmith India: Trade name: William O'Neil India Pvt. Ltd; Sebi-registered research analyst registration number: INH000015543

Ankush Bajaj is a Sebi-registered research analyst. His registration number is INH000010441.

Trade Brains Portal is a stock analysis platform. Its trade name is Dailyraven Technologies Pvt. Ltd, and its Sebi-registered research analyst registration number is INH000015729.

Investments in securities are subject to market risks. Read all the related documents carefully before investing. Registration granted by Sebi and certification from NISM in no way guarantees performance of the intermediary or provide any assurance of returns to investors.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.

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