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Last Updated on: 25 July, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

Fundamental Analysis of Sun Pharmaceuticals Industries Ltd

Basic Stock Data

Last Updated: July 24, 2024, 10:35 pm

Market Cap 3,88,366 Cr.
Current Price 1,619
High / Low1,639/1,068
Stock P/E38.9
Book Value 265
Dividend Yield0.83 %
ROCE17.3 %
ROE16.7 %
Face Value 1.00
PEG Ratio1.89

Data Source: screener.in

Competitors of Sun Pharmaceuticals Industries Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Murae Organisor Ltd 36.3 Cr. 1.473.10/0.90727 2.260.00 %0.79 %0.13 % 2.00
Dipna Pharmachem Ltd 18.3 Cr. 7.6024.1/7.4616.8 15.60.00 %8.49 %4.47 % 10.0
Decipher Labs Ltd 18.5 Cr. 18.325.8/14.4 21.60.00 %4.30 %7.46 % 10.0
Coral Laboratories Ltd 250 Cr. 700748/24515.7 4970.00 %12.6 %9.58 % 10.0
Concord Drugs Ltd 38.4 Cr. 38.461.5/28.291.4 33.80.00 %4.54 %1.29 % 10.0
Industry Average16,146.33 Cr1,330.6160.88208.130.34%17.42%17.00%6.54

Quarterly Result

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Sales8,5239,7199,6269,8639,44710,76210,95211,24110,93111,94112,19212,38111,983
Expenses6,4756,8986,9967,2577,1067,8777,9968,2378,1298,6099,0138,9048,948
Operating Profit2,0482,8212,6302,6062,3402,8842,9573,0042,8023,3323,1793,4773,035
OPM %24%29%27%26%25%27%27%27%26%28%26%28%25%
Other Income-562-479223433-3,822285174202-118294180504
Interest30353619371419469381493574
Depreciation553503530554556588610660672651633622650
Profit before tax9031,8042,2872,466-2,0762,2852,4122,4712,2402,4812,7913,0002,816
Tax %6%22%9%14%-7%8%6%11%10%19%14%14%5%
Net Profit8421,4042,0862,126-2,2272,0932,2562,1811,9832,0062,3852,5612,659
EPS in Rs3.736.028.538.58-9.498.599.439.038.278.439.9010.5211.06

Last Updated: July 15, 2024, 2:13 pm

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: July 25, 2024, 10:51 am

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Sales11,13116,08027,39228,48731,57826,48929,06632,83833,49838,65443,88648,497
Expenses6,3469,07819,49820,31321,47620,85822,68925,85525,02828,39732,23535,479
Operating Profit4,7847,0037,8948,17410,1025,6316,3776,9838,47010,25811,65013,018
OPM %43%44%29%29%32%21%22%21%25%27%27%27%
Other Income-90-1,968283-42610-135-258382-3,449-3,505459865
Interest4344579523400518555303141127172238
Depreciation3364091,1951,0381,2651,5001,7532,0532,0802,1442,5292,557
Profit before tax4,3154,5816,4036,5719,0483,4793,8105,0102,7994,4819,40811,088
Tax %20%15%14%14%13%26%16%16%18%24%9%13%
Net Profit3,4693,8795,4765,6587,8462,5423,2084,1722,2723,3898,5139,610
EPS in Rs14.4015.1721.9218.8929.038.7311.1115.6912.1013.6435.3239.91
Dividend Payout %9%10%14%5%12%23%25%25%62%73%33%34%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)11.82%41.17%3.32%38.67%-67.60%26.20%30.05%-45.54%49.16%151.20%12.89%
Change in YoY Net Profit Growth (%)0.00%29.35%-37.85%35.35%-106.27%93.80%3.85%-75.59%94.71%102.03%-138.31%

Growth

Compounded Sales Growth
10 Years:12%
5 Years:11%
3 Years:13%
TTM:11%
Compounded Profit Growth
10 Years:8%
5 Years:23%
3 Years:25%
TTM:16%
Stock Price CAGR
10 Years:7%
5 Years:30%
3 Years:32%
1 Year:46%
Return on Equity
10 Years:14%
5 Years:14%
3 Years:16%
Last Year:17%

Last Updated: July 25, 2024, 6:31 am

Balance Sheet

Last Updated: July 10, 2024, 9:50 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital104207207241240240240240240240240240
Reserves14,88618,31825,43132,74236,40038,07441,16945,02546,22347,77155,75563,427
Borrowings2602,5618,9968,4979,83210,38510,5148,3153,8691,2906,8863,274
Other Liabilities5,1288,00914,08913,94814,62415,59812,66614,61517,29120,47417,83118,522
Total Liabilities20,37729,09548,72355,42861,09564,29764,59068,19467,62269,77680,71285,463
Fixed Assets5,6476,81712,68215,87217,67518,85321,83722,84721,55322,66524,42027,458
CWIP5638422,0392,1752,8012,4651,4111,2201,5671,2874,9731,108
Investments2,4122,7862,7161,8301,1927,1437,90310,1439,61212,84914,83015,026
Other Assets11,75618,65031,28635,55039,42735,83733,43933,98434,89032,97536,48941,872
Total Assets20,37729,09548,72355,42861,09564,29764,59068,19467,62269,77680,71285,463

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity 3,3573,9595,6166,6867,0823,9072,1966,5556,1708,9854,95912,135
Cash from Investing Activity -2,375-2,176-1,502-3,949-4,186-3,104-310-2,225407-5,556-7,220-763
Cash from Financing Activity -665507-1,187-1,889-2,285-1,539-2,731-5,715-5,980-5,1932,376-6,710
Net Cash Flow3162,2902,927848611-736-844-1,386596-1,7651154,662

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-256.005.00-1.000.001.00-5.00-4.00-2.005.009.005.0010.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days957950688783108112105999995
Inventory Days464454410307370307338366311378315360
Days Payable221186174178207197234192142167158194
Cash Conversion Cycle338347286197251193212285274310255261
Working Capital Days127111126761047379137112845593
ROCE %26%32%34%23%18%20%10%10%10%13%17%16%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Promoters54.48%54.48%54.48%54.48%54.48%54.48%54.48%54.48%54.48%54.48%54.48%54.48%
FIIs11.50%12.07%13.00%14.44%14.95%16.00%16.87%16.88%16.48%16.78%17.08%17.72%
DIIs21.97%21.73%20.99%20.02%19.66%19.64%19.08%19.18%19.65%19.56%19.42%18.71%
Government0.00%0.00%0.00%0.00%0.00%0.06%0.06%0.06%0.09%0.10%0.11%0.11%
Public12.05%11.72%11.53%11.06%10.91%9.80%9.52%9.38%9.28%9.05%8.92%8.97%
No. of Shareholders7,57,3666,75,9086,80,8006,62,3846,47,1676,43,5126,32,3376,25,2526,24,5616,16,5886,12,6266,31,392

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
SBI Nifty 50 ETF19,868,4451.432502.337,973,4962024-07-23149.18%
ICICI Prudential Value Discovery Fund18,245,0026.122297.877,973,4962024-07-23128.82%
SBI S&P BSE Sensex ETF14,074,2371.651773.357,973,4962024-07-2376.51%
ICICI Prudential Equity & Debt Fund7,973,4963.371004.227,973,4962024-07-230%
ICICI Prudential Bluechip Fund7,743,8812.03975.37,973,4962024-07-23-2.88%
Axis Bluechip Fund6,950,2902.64875.357,973,4962024-07-23-12.83%
HDFC Balanced Advantage Fund - Regular Plan6,700,6121.15843.917,973,4962024-07-23-15.96%
Nippon India Pharma Fund6,556,34912.76825.747,973,4962024-07-23-17.77%
Aditya Birla Sun Life Flexi Cap Fund6,516,3594.24820.77,973,4962024-07-23-18.27%
HDFC Top 100 Fund - Regular Plan6,434,0092.68810.337,973,4962024-07-23-19.31%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue1.001.001.001.001.00
Basic EPS (Rs.)39.9035.3013.6012.1015.70
Diluted EPS (Rs.)39.9035.3013.6012.1015.70
Cash EPS (Rs.)50.8746.2223.1318.1926.01
Book Value[Excl.RevalReserv]/Share (Rs.)279.69247.22212.84206.23204.75
Book Value[Incl.RevalReserv]/Share (Rs.)279.69247.22212.84206.23204.75
Revenue From Operations / Share (Rs.)202.13182.91161.11139.62136.86
PBDIT / Share (Rs.)59.9251.1947.1838.8731.78
PBIT / Share (Rs.)49.2740.6438.2430.2023.23
PBT / Share (Rs.)46.2139.2118.6811.6720.88
Net Profit / Share (Rs.)40.2135.6814.209.5217.45
NP After MI And SOA / Share (Rs.)39.9135.3213.6412.1015.69
PBDIT Margin (%)29.6427.9829.2827.8423.22
PBIT Margin (%)24.3722.2223.7321.6316.97
PBT Margin (%)22.8621.4311.598.3515.25
Net Profit Margin (%)19.8919.508.816.8212.75
NP After MI And SOA Margin (%)19.7419.308.468.6611.46
Return on Networth / Equity (%)15.0415.136.816.248.31
Return on Capital Employeed (%)17.2616.0217.4414.0610.60
Return On Assets (%)11.2010.494.684.295.51
Long Term Debt / Equity (X)0.000.000.000.010.04
Total Debt / Equity (X)0.040.110.010.070.16
Asset Turnover Ratio (%)0.580.580.560.490.49
Current Ratio (X)2.562.002.041.892.02
Quick Ratio (X)1.981.481.511.331.51
Inventory Turnover Ratio (X)0.670.790.780.720.69
Dividend Payout Ratio (NP) (%)30.2629.7365.9653.6836.62
Dividend Payout Ratio (CP) (%)23.8822.8939.8531.2823.70
Earning Retention Ratio (%)69.7470.2734.0446.3263.38
Cash Earning Retention Ratio (%)76.1277.1160.1568.7276.30
Interest Coverage Ratio (X)60.2971.4088.8865.9525.19
Interest Coverage Ratio (Post Tax) (X)43.5351.7763.6047.6015.69
Enterprise Value (Cr.)384570.80239622.86218440.19143296.7489454.34
EV / Net Operating Revenue (X)7.935.465.654.282.72
EV / EBITDA (X)26.7519.5119.3015.3611.73
MarketCap / Net Operating Revenue (X)8.025.375.684.282.57
Retention Ratios (%)69.7370.2634.0346.3163.37
Price / BV (X)6.114.214.573.091.87
Price / Net Operating Revenue (X)8.025.375.684.282.57
EarningsYield0.020.030.010.020.04

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: 1,735.81

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

Undervalued: 7.21% compared to the current price 1619

Intrinsic Value: 2,092.15

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators along with EPS growth.

Undervalued: 29.23% compared to the current price 1619

Last 5 Year EPS CAGR: 20.53%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 19.08%, which is a positive sign.
  2. The company has higher reserves (38,768.42 cr) compared to borrowings (6,223.25 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (30.17 cr) and profit (5.50 cr) over the years.
  1. The stock has a high average Working Capital Days of 98.08, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 267.42, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Sun Pharmaceuticals Industries Ltd:
    1. Net Profit Margin: 19.89%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 17.26% (Industry Average ROCE: 17.42%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ✗ ROE%: 15.04% (Industry Average ROE: 17.00%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 43.53
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 1.98
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. ✓ Stock P/E: 38.9 (Industry average Stock P/E: 60.87)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. ✓ Total Debt / Equity: 0.04
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company

Sun Pharmaceutical Industries Ltd. is a Public Limited Listed company incorporated on 01/03/1993 and has its registered office in the State of Gujarat, India. Company’s Corporate Identification Number(CIN) is L24230GJ1993PLC019050 and registration number is 019050. Currently Company is involved in the business activities of Manufacture of pharmaceuticals, medicinal chemical and botanical products. Company’s Total Operating Revenue is Rs. 15585.98 Cr. and Equity Capital is Rs. 239.93 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
PharmaceuticalsSun Pharma Advanced Research Centre (SPARC), Tandalja, Vadodra Gujarat 390012secretarial@sunpharma.com
http://www.sunpharma.com
Management
NamePosition Held
Mr. Dilip S ShanghviChairman & Managing Director
Mr. Aalok D ShanghviWhole Time Director
Mr. Sudhir V ValiaNon Exe.Non Ind.Director
Dr. Pawan GoenkaLead Independent Director
Mr. Rama BijapurkarIndependent Director
Mr. Gautam DoshiIndependent Director
Mr. Sanjay AsherIndependent Director
Mr. Rolf HoffmannIndependent Director

FAQ

What is the latest fair value of Sun Pharmaceuticals Industries Ltd?

The latest fair value of Sun Pharmaceuticals Industries Ltd is ₹1735.81.

What is the Market Cap of Sun Pharmaceuticals Industries Ltd?

The Market Cap of Sun Pharmaceuticals Industries Ltd is 3,88,366 Cr..

What is the current Stock Price of Sun Pharmaceuticals Industries Ltd as on 25 July 2024?

The current stock price of Sun Pharmaceuticals Industries Ltd as on 25 July 2024 is 1,619.

What is the High / Low of Sun Pharmaceuticals Industries Ltd stocks in FY 2024?

In FY 2024, the High / Low of Sun Pharmaceuticals Industries Ltd stocks is 1,639/1,068.

What is the Stock P/E of Sun Pharmaceuticals Industries Ltd?

The Stock P/E of Sun Pharmaceuticals Industries Ltd is 38.9.

What is the Book Value of Sun Pharmaceuticals Industries Ltd?

The Book Value of Sun Pharmaceuticals Industries Ltd is 265.

What is the Dividend Yield of Sun Pharmaceuticals Industries Ltd?

The Dividend Yield of Sun Pharmaceuticals Industries Ltd is 0.83 %.

What is the ROCE of Sun Pharmaceuticals Industries Ltd?

The ROCE of Sun Pharmaceuticals Industries Ltd is 17.3 %.

What is the ROE of Sun Pharmaceuticals Industries Ltd?

The ROE of Sun Pharmaceuticals Industries Ltd is 16.7 %.

What is the Face Value of Sun Pharmaceuticals Industries Ltd?

The Face Value of Sun Pharmaceuticals Industries Ltd is 1.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Sun Pharmaceuticals Industries Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE