Sun Pharmaceutical Ltd’s fundamental analysis highlights essential financial metrics, including a total market capitalization of ₹4,46,576 crore, a debt-to-equity ratio of 0.04, and a return on equity (ROE) of 16.7%. These numbers offer valuable insight into the company’s financial stability and overall market valuation.
Content:
- Overview of the Pharmaceutical Sector
- Financial Analysis of Sun Pharmaceutical Industries Ltd
- Sun Pharmaceutical Industries Ltd Company Metrics
- Sun Pharma Stock Performance
- Sun Pharma Shareholding Pattern
- Sun Pharma Partnerships and Acquisitions
- Sun Pharma Peer comparison
- Future of Sun Pharmaceutical Industries Ltd
- How to Invest In Sun Pharma Share?
- Sun Pharma – FAQs
Overview of the Pharmaceutical Sector
The pharmaceutical sector is crucial to global healthcare, focused on the development, production, and marketing of medications. It encompasses a broad range of industries, including generic, branded, and over-the-counter drugs, catering to both common and complex medical conditions.
With increasing healthcare demands, especially in emerging markets, the pharmaceutical industry has seen consistent growth. Innovations in biotechnology, personalized medicine, and advancements in drug delivery systems drive future opportunities. Regulatory hurdles and pricing pressures, however, remain significant challenges for companies in maintaining profitability and expanding market share.
Financial Analysis of Sun Pharmaceutical Industries Ltd
| FY 24 | FY 23 | FY 22 | FY 21 | |
| Sales | 48,497 | 43,886 | 38,654 | 33,498 |
| Expenses | 35,474 | 32,239 | 28,257 | 25,007 |
| Operating Profit | 13,023 | 11,647 | 10,398 | 8,491 |
| OPM % | 26.12 | 26.16 | 26.27 | 24.73 |
| Other Income | 859.87 | 463.07 | -3,645 | -3,471 |
| EBITDA | 14,377 | 12,281 | 11,319 | 9,327 |
| Interest | 238.47 | 172 | 127.35 | 141.43 |
| Depreciation | 2,557 | 2,529 | 2,144 | 2,080 |
| Profit Before Tax | 11,088 | 9,408 | 4,481 | 2,799 |
| Tax % | 12.98 | 9.01 | 24 | 18.39 |
| Net Profit | 9,610 | 8,513 | 3,389 | 2,272 |
| EPS | 39.91 | 35.32 | 13.64 | 12.1 |
| Dividend Payout % | 33.83 | 32.56 | 73.31 | 61.98 |
* Consolidated Figures in Rs. Crores
Sun Pharmaceutical Industries Ltd Company Metrics
Sun Pharmaceutical Industries Ltd’s financial metrics highlight steady performance: In FY24, sales reached ₹48,497 crore, up from ₹43,886 crore in FY23 and ₹38,654 crore in FY22. Operating profit improved to ₹13,023 crore, reflecting strong operational efficiencies and sustained growth.
Sales Growth: Sales grew by 10.51% to ₹48,497 crore in FY24 from ₹43,886 crore in FY23. FY23 recorded a 13.51% increase from ₹38,654 crore in FY22, showcasing consistent expansion in revenue driven by strong demand and market presence.
Expense Trends: Expenses increased to ₹35,474 crore in FY24, reflecting a 10.05% rise from ₹32,239 crore in FY23. FY23 expenses grew by 14.10% compared to ₹28,257 crore in FY22, indicating a proportional rise in costs alongside revenue growth.
Operating Profit & Margins: Operating profit grew to ₹13,023 crore in FY24, an 11.82% rise over ₹11,647 crore in FY23. OPM remained stable at 26.12% in FY24 compared to 26.16% in FY23 and 26.27% in FY22, signaling consistent profitability.
Profitability Indicators: Net profit increased to ₹9,610 crore in FY24, up 12.88% from ₹8,513 crore in FY23. FY22 net profit was ₹3,389 crore. Earnings per share (EPS) rose to ₹39.91 in FY24 from ₹35.32 in FY23, reflecting improved shareholder returns.
Taxation & Dividend: The tax rate rose to 12.98% in FY24 from 9.01% in FY23. Dividend payout increased slightly to 33.83% in FY24 from 32.56% in FY23. FY22 had a higher tax rate of 24% and a dividend payout of 73.31%.
Key Financial Metrics: EBITDA increased to ₹14,377 crore in FY24 from ₹12,281 crore in FY23 and ₹11,319 crore in FY22. Interest expenses rose to ₹238.47 crore in FY24, while depreciation climbed to ₹2,557 crore, reflecting expanded capital and operational investments.
Sun Pharma Stock Performance
Sun Pharma has demonstrated strong stock performance, with a 1-year return of 47.8%, a 3-year return of 30.7%, and a 5-year return of 33.8%. This consistent growth reflects the company’s solid market position and long-term value creation for investors.
| Duration | Return |
| 1 year | 47.8 % |
| 3 years | 30.7 % |
| 5 years | 33.8 % |
Sun Pharma Shareholding Pattern
The shareholding Pattern of Sun Pharma shows a stable distribution, with promoters holding 54.48%. Foreign institutional investors (FIIs) increased their stake to 18.01%, while domestic institutional investors (DIIs) hold 18.48%. Public shareholding is 8.89%, with a steady increase in the number of shareholders.
| Metrics | Mar 2022 | Mar 2023 | Mar 2024 | Sep 2024 |
| Promoters | 54.48% | 54.48% | 54.48% | 54.48% |
| FIIs | 14.44% | 16.88% | 17.72% | 18.01% |
| DIIs | 20.02% | 19.18% | 18.71% | 18.48% |
| Government | 0.00% | 0.06% | 0.11% | 0.11% |
| Public | 11.06% | 9.38% | 8.97% | 8.89% |
| No. of Shareholders | 6,62,384 | 6,25,252 | 6,31,392 | 6,57,317 |
Sun Pharma Partnerships and Acquisitions
Sun Pharma has strategically expanded its global presence through several key acquisitions. Notably, the company acquired Ranbaxy Laboratories in 2015, significantly increasing its market share in the generics segment and strengthening its global manufacturing and distribution capabilities.
The company also made substantial investments in innovative areas like specialty treatments and biologics. Collaborations with biotech firms have allowed Sun Pharma to expand its portfolio of dermatology, oncology, and ophthalmology products, positioning it as a leader in specialty medicines and driving revenue growth.
In addition to acquisitions, Sun Pharma has formed numerous partnerships to enhance its research and development capabilities. These partnerships focus on drug discovery, clinical trials, and market access, further solidifying its position in emerging and developed markets worldwide.
Sun Pharma Peer comparison
Sun Pharmaceutical Industries stands strong in the pharmaceutical sector, with a market capitalization of ₹4.46 lakh crore. Compared to peers, it has a higher P/E ratio of 39.85 and a solid 47.78% 1-year return, indicating strong investor confidence and consistent performance.
| Name | CMP Rs. | Mar Cap Rs.Cr. | P/E | ROE % | ROCE % | 6mth return % | 1Yr return % | Div Yld % |
| Sun Pharma.Inds. | 1861.25 | 446576.22 | 39.85 | 16.69 | 17.32 | 22.13 | 47.78 | 0.73 |
| Cipla | 1506.6 | 121675.13 | 26.42 | 16.79 | 22.8 | 1.21 | 20.89 | 0.86 |
| Mankind Pharma | 2871.75 | 118478.9 | 59.11 | 19.71 | 24.57 | 34.88 | 44.85 | 0 |
| Dr Reddy’s Labs | 1389.45 | 115937.22 | 21.72 | 21.39 | 26.53 | 9.06 | 19.82 | 0.58 |
| Lupin | 2227.8 | 101639.93 | 38.7 | 14.14 | 15.72 | 36.44 | 68.4 | 0.36 |
| Zydus Lifesci. | 972.4 | 97846.19 | 22.87 | 20.67 | 22.34 | -9.51 | 41.09 | 0.31 |
| Aurobindo Pharma | 1269.95 | 74411.27 | 20.42 | 11.53 | 14.1 | 4.69 | 17.15 | 0.35 |
Future of Sun Pharmaceutical Industries Ltd
The future of Sun Pharmaceutical Industries Ltd looks promising, driven by its strong position in the global generics market and ongoing expansion in specialty drugs, particularly in oncology, dermatology, and ophthalmology. This focus on high-value medicines supports long-term growth.
With increasing demand for affordable healthcare and the company’s robust R&D pipeline, Sun Pharma is well-positioned to lead in emerging markets. Continued investments in biologics and precision medicine will enhance its competitive edge and allow for broader market penetration in both developed and developing regions.
Sun Pharma’s strategy of strategic acquisitions and partnerships will further fuel its growth. By enhancing its product offerings and expanding its geographical footprint, the company is poised for sustained profitability, making it a strong player in the pharmaceutical industry for years to come.
How to Invest In Sun Pharma Share?
To invest in Sun Pharmaceutical shares, begin by opening a Demat and trading account with a trusted stockbroker such as Alice Blue. This account allows you to securely buy and hold shares electronically.
- Research the Stock: Analyze Sun Pharmaceutical’s financials, market trends, and growth prospects to understand its potential risks and rewards before investing.
- Choose a Reliable Stockbroker: Select a trusted broker like Alice Blue for its user-friendly platform and competitive fees, then register to access the stock market.
- Fund Your Trading Account: Deposit funds into your trading account, ensuring enough balance to cover share purchases and additional fees.
- Place a Buy Order: Search for Sun Pharmaceutical on your broker’s platform and place a buy order with a specified quantity and price (market or limit order).
- Monitor Your Investment: Track your investment’s performance regularly and stay updated on news or developments that could impact your decision to hold or sell.
- Brokerage Tariffs: Please note that Alice Blue’s updated brokerage tariff is now Rs. 20 per order, which will apply to all trades.
Sun Pharma – FAQs
What Is the Market Cap of Sun Pharma?
Sun Pharma has a market capitalization of ₹4,46,576 crore, making it one of the largest pharmaceutical companies in India and a significant player in the global market.
Is Sun Pharma the leader in the Pharmaceutical industry?
Sun Pharma is a leader in the Indian pharmaceutical industry, with a strong presence in the global market, especially in generic drugs, and ranked among the top pharmaceutical companies globally by market share.
What are the acquisitions of Sun Pharma?
Sun Pharma has made several strategic acquisitions, including the purchase of Ranbaxy Laboratories in 2015, the generic business of Merck & Co., and other global pharma companies to strengthen its global footprint and product portfolio.
What does Sun Pharma do?
Sun Pharma is a global pharmaceutical company that develops, manufactures, and markets generic formulations, active pharmaceutical ingredients (APIs), and over-the-counter (OTC) products across various therapeutic areas such as dermatology, oncology, and cardiology.
Who is the Owner of Sun Pharmaceutical Industries Ltd?
Sun Pharmaceutical Industries Ltd. is primarily owned by its founder, Dilip Shanghvi, who holds a significant stake in the company through his personal holdings and family interests.
Who are the main shareholders of Sun Pharma?
The main shareholders of Sun Pharma include promoters with a 54.48% stake, followed by foreign institutional investors (FIIs) at 18.01%, domestic institutional investors (DIIs) at 18.48%, and the public holding around 8.89% as of September 2024.
What Type of Industry is Sun Pharma?
Sun Pharma operates in the pharmaceutical industry, focusing on the development, manufacturing, and marketing of generic medicines, active pharmaceutical ingredients (APIs), and specialized treatments in areas like oncology, dermatology, and neurology.
What is the Growth in the Order Book of Sun Pharma for the Year?
Sun Pharma showcases growth in its order book through increased demand for its generic and specialty medicines, particularly in oncology and dermatology. Strategic acquisitions, new product launches, and expansion into emerging markets continue to drive robust order book growth and future prospects.
How to Invest in Sun Pharma Share?
To invest in Sun Pharma shares, open a Demat and trading account with a reliable broker like Alice Blue. Fund your account, research the stock, and place a buy order through the broker’s platform. Regularly monitor your investment to track performance and make informed decisions based on market trends.
Is Sun Pharma Overvalued or Undervalued?
Sun Pharma’s valuation, with a P/E ratio of 39.8, suggests it is priced at a premium. However, it remains attractive due to its strong market position, consistent growth, and high profit margins, indicating long-term potential despite the premium.
What is the future of Sun Pharma?
Sun Pharma’s future looks promising due to its strong presence in the global generic market, ongoing innovations in specialty medicines, and acquisitions, along with expanding into emerging markets, positioning it well for long-term growth.
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.
