Sun Pharmaceutical Industries Ltd’s fundamental analysis highlights key financial metrics including market capitalization of ₹4,18,552 crore, PE ratio of 39.7, debt-to-equity ratio of 0.05, and return on equity of 16.7%. These figures reflect the company’s financial health and current market valuation.
Content:
- Sun Pharmaceutical Industries Ltd Overview
- Sun Pharmaceutical Industries Financial Results
- Sun Pharmaceutical Industries Financial Analysis
- Sun Pharmaceutical Industries Company Metrics
- Sun Pharmaceutical Industries Stock Performance
- Sun Pharmaceutical Industries Peer Comparison
- Sun Pharmaceutical Industries Shareholding Pattern
- Sun Pharmaceutical Industries History
- How To Invest In Sun Pharmaceutical Industries Ltd Share?
- Sun Pharmaceutical Industries Limited Fundamental Analysis – FAQs
Sun Pharmaceutical Industries Ltd Overview
Sun Pharmaceutical Industries Ltd is a major Indian pharmaceutical company specializing in branded and generic drugs. It is known for its extensive portfolio, global reach, and strong R&D capabilities, making it a key player in the global pharmaceutical industry.
The company has a market capitalization of ₹4,18,552 crore and is listed on both the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). Currently, the stock is trading 0.80% below its 52-week high and 63.3% above its 52-week low.
Sun Pharmaceutical Industries Financial Results
Sun Pharmaceuticals Industries’ financial results for FY24 highlight a significant increase in sales to ₹48,497 crore, up from ₹38,654 crore in FY22. Net profit also surged to ₹9,610 crore from ₹3,389 crore.
- Revenue Trend: Sun Pharmaceuticals’ sales grew from ₹38,654 crore in FY22 to ₹48,497 crore in FY24, reflecting consistent growth. Expenses followed suit, rising from ₹28,257 crore in FY22 to ₹35,474 crore in FY24.
- Equity and Liabilities: The company’s financial stability is underscored by its controlled interest expenses, which increased moderately from ₹127.35 crore in FY22 to ₹238.47 crore in FY24, supporting its growth.
- Profitability: Operating profit expanded from ₹10,398 crore in FY22 to ₹13,023 crore in FY24. EBITDA increased to ₹14,377 crore in FY24 from ₹11,319 crore in FY22, while OPM remained steady at 27%.
- Earnings Per Share (EPS): EPS nearly tripled over the period, growing from ₹13.6 in FY22 to ₹39.9 in FY24, reflecting strong profitability and effective cost management.
- Return on Net Worth (RoNW): RoNW showed robust improvement as net profit surged from ₹3,389 crore in FY22 to ₹9,610 crore in FY24, driven by operational efficiencies and increased sales.
- Financial Position: Sun Pharmaceuticals maintained a healthy financial position, with a consistent dividend payout of around 33% in FY24, down from a peak of 73.53% in FY22, reflecting prudent capital allocation.
Sun Pharmaceutical Industries Financial Analysis
| FY 24 | FY 23 | FY 22 | |
| Sales | 48,497 | 43,886 | 38,654 |
| Expenses | 35,474 | 32,239 | 28,257 |
| Operating Profit | 13,023 | 11,647 | 10,398 |
| OPM % | 27 | 27 | 27 |
| Other Income | 859.87 | 463.07 | -3,645 |
| EBITDA | 14,377 | 12,281 | 11,319 |
| Interest | 238.47 | 172 | 127.35 |
| Depreciation | 2,557 | 2,529 | 2,144 |
| Profit Before Tax | 11,088 | 9,408 | 4,481 |
| Tax % | 12.98 | 9.01 | 24 |
| Net Profit | 9,610 | 8,513 | 3,389 |
| EPS | 39.9 | 35.3 | 13.6 |
| Dividend Payout % | 33.83 | 32.58 | 73.53 |
*All values in ₹ Crores
Sun Pharmaceutical Industries Company Metrics
Sun Pharmaceutical Industries Ltd has a market capitalization of ₹4,18,552 crore, reflecting its strong market presence. The company’s stock is currently priced at ₹1,744, with a high of ₹1,758 and a low of ₹1,068.
- Market Cap: Sun Pharmaceutical’s market capitalization stands at ₹4,18,552 crore, highlighting its significant valuation and market position.
- Book Value: The book value per share is ₹265, representing the net asset value attributable to each share.
- Face Value: The face value of the stock is ₹1.00, indicating the nominal value assigned to each share.
- Turnover: The company has an asset turnover ratio of 0.58, indicating its efficiency in utilizing assets to generate revenue.
- PE Ratio: With a price-to-earnings ratio of 39.7, Sun Pharmaceuticals stock is valued at nearly 40 times its earnings.
- Debt: The company holds ₹3,274 crore in debt, maintaining a low debt-to-equity ratio of 0.05.
- ROE: Sun Pharmaceutical boasts a return on equity of 16.7%, reflecting efficient utilization of shareholder equity to generate profits.
- EBITDA Margin: The EBITDA margin is 27.0%, demonstrating strong operating profitability and cost control.
- Dividend Yield: The dividend yield is 0.79%, indicating the percentage of earnings returned to shareholders as dividends.
Sun Pharmaceutical Industries Stock Performance
The table shows Sun Pharmaceutical Industries Ltd’s strong return on investment (ROI) over various periods. Over five years, ROI is 33%, indicating solid long-term growth. Over three years, it is 31%, and over one year, it has surged to 53%, reflecting recent strong performance.
| Period | Return on Investment (%) |
| 5 Years | 33% |
| 3 Years | 31% |
| 1 Year | 53% |
Example:
Suppose an investor invested ₹1,00,000 in Sun Pharmaceutical Industries Ltd. Over the past year, with a 53% ROI, the investment would have grown to ₹1,53,000.
Over the last three years, with a 31% ROI, the same ₹1,00,000 investment would be worth ₹1,31,000.
For a five-year period with a 33% ROI, the investment would increase to ₹1,33,000.
Sun Pharmaceutical Industries Peer Comparison
The competitor analysis reveals Sun Pharma leads with the highest market capitalization of ₹4,17,964.25 crore and a 53.55% 1-year return. Zydus Lifesciences shows strong growth with an 82.42% 1-year return. Dr Reddy’s Labs and Lupin also perform well, with notable returns and market caps.
| Sl No. | Name | CMP Rs. | Mar Cap Rs.Cr. | PEG | 3mth return % | 1Yr return % |
| 1 | NTPC | 397 | 385,152 | 3 | 9.61 | 86.01 |
| 2 | Power Grid Corpn | 334 | 310,966 | 2 | 7.82 | 83.74 |
| 3 | Adani Green | 1,805 | 285,854 | 6 | -1.02 | 91.92 |
| 4 | Adani Power | 684 | 263,853 | 0 | 7.68 | 141 |
| 5 | Adani Energy Sol | 1,097 | 131,781 | 9 | 3.9 | 32.53 |
| 6 | Tata Power Co. | 409 | 130,530 | 0 | -5.92 | 76.62 |
| 7 | JSW Energy | 654.15 | 114330.28 | 2.96 | 13.2 | 93.68 |
Sun Pharmaceutical Industries Shareholding Pattern
The shareholding Pattern of Sun Pharmaceutical Industries Ltd shows a stable structure with promoters holding 54.48% consistently. FIIs have a slight increase to 17.23%, while DIIs hold 19.28%, up from previous quarters. Retail and others have a minor fluctuation, now at 9%.
| Jun 2024 | Mar 2024 | Dec 2023 | Sept 2023 | |
| Promoters | 54.48 | 54.48 | 54.48 | 54.48 |
| FII | 17.23 | 17.72 | 17.08 | 16.78 |
| DII | 19.28 | 18.82 | 19.53 | 19.66 |
| Retail & others | 9 | 8.97 | 8.92 | 9.05 |
*All values in %
Sun Pharmaceutical Industries History
Sun Pharmaceutical Industries Ltd, founded in 1983 by Dilip Shanghvi, initially operated as a partnership firm focusing on pharmaceutical formulations. It became a public company in 1994, expanding its product range and production capacities significantly.
By the late 1990s, Sun Pharma had merged with several companies and expanded its research capabilities. The company continued to grow through acquisitions, including the purchase of Tamil Nadu Dadha Pharmaceuticals and various global ventures.
In the 2000s, Sun Pharma further strengthened its position with major acquisitions, including Taro Pharmaceuticals and Ranbaxy. The company also advanced its research and development, launching new products and securing FDA approvals, solidifying its global presence.
How To Invest In Sun Pharmaceutical Industries Ltd Share?
Investing in Sun Pharmaceutical Industries Ltd shares is a straightforward process:
- Open a Demat Account: Start by opening a Demat and trading account with a reliable brokerage firm like Alice Blue.
- Complete KYC: Submit necessary documents for KYC verification.
- Fund Your Account: Deposit funds into your trading account.
- Buy Shares: Search for Sun Pharmaceutical Industries Ltd shares and place your buy order.
Sun Pharmaceutical Industries Limited Fundamental Analysis – FAQs
Sun Pharmaceutical Industries Ltd’s fundamental analysis reveals a market capitalization of ₹4,18,552 crore, a PE ratio of 39.7, a debt-to-equity ratio of 0.05, and a return on equity of 16.7%, indicating its strong financial stability and market valuation.
The market capitalization of Sun Pharmaceutical Industries Ltd is ₹4,18,552 crore. This figure represents the total value of the company’s outstanding shares in the stock market, calculated by multiplying the current share price by the total number of shares outstanding.
Sun Pharmaceutical Industries Limited is a leading global pharmaceutical company based in India, specializing in the development, manufacturing, and marketing of a wide range of prescription and over-the-counter medicines. It is known for its innovation and extensive global reach.
Sun Pharmaceutical Industries Limited is primarily owned by its founder, Dilip Shanghvi, who holds a significant shareholding. The company is publicly traded, with its ownership also distributed among institutional and retail investors. Shanghvi’s leadership remains pivotal in its operations.
The main shareholders of Sun Pharmaceutical Industries include its founder Dilip Shanghvi, who holds a substantial stake, along with institutional investors like LIC and mutual funds. Public and retail investors also hold significant portions of the company’s shares.
Sun Pharmaceutical Industries operates in the pharmaceutical industry, specializing in the development, manufacturing, and marketing of a wide range of prescription and over-the-counter medicines. It focuses on both generic and speciality drug segments globally.
To invest in Sun Pharmaceutical Industries Ltd shares, open a brokerage account with Alice Blue, deposit funds, and place an order to buy the shares through the stock exchange. Ensure to review financials and market trends before investing.
Determining if Sun Pharmaceutical Industries Ltd is overvalued or undervalued requires a comprehensive analysis of its financials, growth prospects, industry trends, and market conditions. Investors should consider metrics like the P/E ratio and PEG ratio, and compare them with industry peers and historical values for a balanced assessment.
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Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time The securities quoted are exemplary and are not recommendatory.
