Pharmaids vs Sun Pharma – Which Pharma Stock Deserves Your Attention?

Company Overview of Sun Pharma Industries Ltd

Sun Pharmaceutical Industries Limited, an Indian-based pharmaceutical company specializing in generic medications, is involved in the manufacturing, development, and marketing of a diverse range of branded and generic pharmaceutical formulations and active ingredients. 

The company offers a broad portfolio of generic and specialty medicines tailored for various chronic and acute medical conditions. With a vertically integrated network, Sun Pharma is capable of producing a wide array of pharmaceutical products, including oncology drugs, hormones, peptides, and steroidal medications.  

Company Overview of Pharmaids Pharmaceuticals Ltd

​Pharmaids Pharmaceuticals Ltd, established in 1989 and headquartered in Bengaluru, India, specializes in Contract Research and Manufacturing Services (CRAMS). The company offers a diverse range of products, including specialty chemicals, skin care formulations, hospital care items, and generic pharmaceuticals. 

Pharmaids operates through its Bulk Drugs and Intermediates segment, serving the pharmaceutical, biotech, and agrochemical industries. With a workforce of approximately 25 employees, the company is publicly listed on the Bombay Stock Exchange under the ticker symbol 524572. As of 2024, Pharmaids reported a revenue of ₹20 crore. ​

The Stock Performance of Sun Pharma Industries

The table below displays the month-by-month stock performance of Sun Pharmaceutical Industries Ltd for the past year.

The Stock Performance of Pharmaids Pharmaceuticals Ltd

The table below displays the month-by-month stock performance of Pharmaids Pharmaceuticals Ltd for the past year.

Fundamental Analysis of Sun Pharmaceutical Industries

Sun Pharmaceutical Industries Ltd is a leading global pharmaceutical company based in India, known for its commitment to innovation and quality. Founded in 1983 by Dilip Shanghvi, Sun Pharma has grown to become one of the largest specialty generic pharmaceutical firms worldwide. The company focuses on developing a broad range of medications across various therapeutic areas, including psychiatry, neurology, cardiology, and dermatology.   

The close price is ₹1652.20, with a market capitalization of ₹396418.12 crores. The dividend yield stands at 0.82%, while the one-year return is 3.00%. Over six months, the return decreased by 12.48%, and the five-year CAGR is 29.45%, with a net profit margin average of 13.23%.

• Close Price ( ₹ ): 1652.20
• Market Cap ( Cr ): 396418.12
• Dividend Yield %: 0.82
• 1Y Return %: 3.00
• 6M Return %: -12.48
• 1M Return %: 1.89
• 5Y CAGR %: 29.45
• % Away From 52W High: 18.65
• 5Y Avg Net Profit Margin %: 13.23 

Fundamental Analysis of Pharmaids Pharmaceuticals Limited

Pharmaids Pharmaceuticals Limited is a prominent player in the pharmaceutical industry, dedicated to providing innovative healthcare solutions. The company focuses on developing high-quality medicines to improve patient outcomes. With a commitment to research and development, Pharmaids Pharmaceuticals Limited emphasizes the importance of scientific advancement, ensuring that its products meet the highest standards of safety and efficacy.   

The stock has a closing price of ₹66.99 and a market cap of ₹236.26 crore, with a one-year return of 23.14% and a six-month return of 65.69%. Currently, it is 30.56% below its 52-week high and has a five-year CAGR of 71.62%.

• Close Price ( ₹ ): 66.99
• Market Cap ( Cr ): 236.26 
• 1Y Return %: 23.14
• 6M Return %: 65.69
• 1M Return %: -11.80
• 5Y CAGR %: 71.62
• % Away From 52W High: 30.56  

Financial Comparison of Sun Pharma Industries and Pharmaids Pharma Ltd

The table below shows a financial comparison of Sun Pharmaceutical Industries Ltd and Pharmaids Pharmaceuticals Ltd.

Points to be noted:

• (TTM) Trailing 12 Months: Trailing 12 months (TTM) is used to describe the past 12 consecutive months of a company’s performance data when reporting financial figures.
• EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization): Measures a company’s profitability before accounting for financial and non-cash expenses.
• PBIT (Profit Before Interest and Tax): Reflects operating profit by excluding interest and taxes from total revenue.
• PBT (Profit Before Tax): Indicates profit after deducting operating costs and interest but before taxes.
• Net Income: Represents the company’s total profit after all expenses, including taxes and interest, are deducted.
• EPS (Earnings Per Share): Shows the portion of a company’s profit allocated to each outstanding share of stock.
• DPS (Dividend Per Share): Reflects the total dividend paid out per share over a specific period.
• Payout Ratio: Measures the proportion of earnings distributed as dividends to shareholders. 

Dividend of Sun Pharma Industries and Pharmaids Pharma Ltd

Sun Pharma Industries consistently offers attractive dividends, with recent payouts including ₹10.5 per share in January 2025 and ₹8.5 per share in January 2024. Pharmaids Pharma Ltd has not paid any dividends. Check the table for complete details. 

Advantages and Disadvantages of Investing in Sun Pharmaceutical Industries

Sun Pharmaceutical Industries Ltd 

The primary advantage of Sun Pharmaceutical Industries Ltd lies in its extensive product portfolio and strong market presence, making it one of the largest pharmaceutical companies globally. I 

1. Strong Global Presence: Sun Pharma operates in over 100 countries and is a leading player in markets such as the U.S., India, and emerging economies. This broad geographic reach provides diversified revenue streams and positions the company for global growth.
   
2. Diverse Product Portfolio: Sun Pharma offers a wide range of pharmaceuticals, including generic drugs, over-the-counter (OTC) products, and specialty medications. This diverse product range helps the company cater to various medical needs, ensuring steady demand across multiple therapeutic areas.
   
3. Research and Development Investment: The company invests heavily in R&D, with a focus on developing high-value specialty drugs. Its strong pipeline includes treatments in oncology, dermatology, and ophthalmology, which positions it for continued innovation and long-term growth in specialized markets.
   
4. Strategic Acquisitions: Sun Pharma has a history of strategic acquisitions that expand its capabilities and market share. The acquisition of Ranbaxy Laboratories in 2015 significantly enhanced its global reach, further strengthening its competitive position in the global pharmaceutical market.
   
5. Financial Performance: Sun Pharma has consistently demonstrated strong financial performance, with stable revenue growth and solid profitability. This financial strength enables the company to invest in innovation, strategic acquisitions, and expand its market presence, ensuring future growth prospects. 

The main disadvantage of Sun Pharmaceutical Industries Ltd is its dependence on the generic drug market. While it holds a strong market position, increased competition and pricing pressure in the generic segment could affect its profitability and growth in the long term.

1. Dependence on Generic Drug Market: Sun Pharma generates significant revenue from generic drugs, which face growing competition from both branded generics and other manufacturers. Price cuts and regulatory challenges can impact the company’s margins, particularly in established markets like the U.S.
   
2. Regulatory Risks: As a global player, Sun Pharma is subject to strict regulatory requirements in different markets. Any issues with regulatory compliance, such as delays in approvals or adverse inspections, can affect the company’s ability to launch products and maintain market access.
   
3. Patent Expiry and Competition: The expiration of patents for key drugs presents a challenge for Sun Pharma, as generics face increased competition from low-cost producers. This puts pressure on revenue from those drugs, affecting overall growth and profitability.
   
4. Legal Issues and Lawsuits: Sun Pharma has faced legal challenges, including patent disputes and lawsuits. Legal issues can lead to substantial financial costs, harm the company’s reputation, and affect future business operations and earnings.  

Advantages and Disadvantages of Investing in Pharmaids Pharmaceuticals Ltd

Pharmaids Pharmaceuticals Ltd

The primary advantage of Pharmaids Pharmaceuticals Ltd lies in its specialized focus on contract research and manufacturing services (CRAMS), which allows the company to cater to a niche market while also benefiting from partnerships with major pharmaceutical companies for production and development.

1. Focus on CRAMS: Pharmaids primarily focuses on providing contract research and manufacturing services, which allows it to generate steady revenue through partnerships. This model provides access to global pharmaceutical markets, as it meets the needs of major drug manufacturers.
   
2. Diversified Product Offerings: Pharmaids offers a range of products, including specialty chemicals, skincare formulations, and generic drugs. This product diversity helps reduce the company’s dependency on a single market segment, ensuring stability even during market fluctuations.
   
3. Expanding Global Reach: With a presence in both domestic and international markets, Pharmaids is working to expand its global footprint. The company aims to tap into growing pharmaceutical markets, especially in emerging economies, to increase its market share.
   
4. Strong R&D Focus: Pharmaids invests in research and development to enhance its product offerings and stay competitive in the pharmaceutical industry. Its commitment to innovation helps it stay ahead of competitors and meet the growing demand for specialized pharmaceutical products.
   
5. Strategic Partnerships: Pharmaids benefits from strategic partnerships with large pharmaceutical companies, enabling it to access advanced technologies and increase its market reach. These collaborations allow the company to scale its operations and improve profitability by utilizing global resources effectively.

The main disadvantage of Pharmaids Pharmaceuticals Ltd lies in its limited market presence and narrow product range. This lack of diversification could hinder its growth potential as it faces competition from larger, more established pharmaceutical companies with broader portfolios.

1. Limited Market Presence: Pharmaids operates on a smaller scale compared to industry giants, limiting its ability to capture a larger share of the global pharmaceutical market. It’s relatively small reach reduces the opportunities for revenue diversification and growth in new regions.
   
2. Narrow Product Portfolio: Pharmaids primarily focuses on a specific range of products like specialty chemicals and generic drugs. The lack of a diverse product portfolio makes it vulnerable to market fluctuations, especially when demand for key products decreases.
   
3. Dependence on Third-Party Partnerships: The company’s business model relies on collaborations and contract manufacturing for its growth. Any disruptions in these partnerships could significantly impact Pharmaids’ ability to generate consistent revenue, exposing it to risks from external factors.
   
4. Regulatory and Compliance Challenges: Pharmaids must comply with stringent regulations in multiple markets. Changes in regulatory requirements or failure to meet quality standards could lead to delays, fines, or product recalls, affecting profitability and brand reputation. 

How to Invest in Pharmaids Pharmaceuticals and Sun Pharma Industries Stocks?

If you’re interested in investing in Pharmaids Pharmaceuticals and Sun Pharma Industries Stocks, you can do so effortlessly through Alice Blue, which offers zero brokerage on equity delivery trades, allowing you to purchase stocks without any additional charges.

Step 1: Open a Demat & Trading Account

• Visit the Alice Blue website.
• Click on “Open Demat Account” and complete the registration process.
• Upload your PAN, Aadhaar, and bank details for verification.

Step 2: Fund Your Trading Account

• Log in to Alice Blue and navigate to the Funds section.
• Deposit money using UPI, Net Banking, or NEFT/RTGS for seamless transactions.

Step 3: Search & Analyze Pharmaids Pharmaceuticals and Sun Pharma Industries Stocks

• Use the search bar to find Pharmaids Pharmaceuticals and Sun Pharma Industries Stocks.
• Review the stock’s market price, charts, and company insights before making a decision.

Step 4: Place Your Buy Order

• Click “Buy” and select either a Market Order (instant purchase) or a Limit Order (buy at a specified price).
• Enter the quantity and confirm your order to complete the purchase. 

Sun Pharma Industries vs. Pharmaids Pharmaceuticals – Conclusion

Sun Pharmaceutical Industries Ltd is a global leader in the pharmaceutical sector, known for its diverse product portfolio, strong market presence, and focus on specialty medications. Its solid financials and research-driven growth make it a dominant force in the industry, with strong long-term prospects.

Pharmaids Pharmaceuticals Ltd, on the other hand, operates on a smaller scale, focusing mainly on contract research and manufacturing services. While it has a niche market, its limited product range and market presence could restrict its growth potential when compared to larger industry players like Sun Pharma. 

Sun Pharmaceutical Industries vs. Pharmaids Pharmaceuticals – FAQ

Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change over time. The securities quoted are exemplary and are not recommended.