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Last Updated on: 27 February, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Sun Pharmaceuticals Industries Ltd

About the Company - Sun Pharmaceuticals Industries Ltd

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 ShanghviManaging Director
Mr. Sailesh T DesaiWhole Time Director
Mr. Sudhir V ValiaNon Exe.Non Ind.Director
Dr. Pawan GoenkaIndependent Director
Mr. Rama BijapurkarIndependent Director
Mr. Gautam DoshiIndependent Director
Mr. Aalok D ShanghviWhole Time Director
Mr. Sanjay AsherIndependent Director
Mr. Rolf HoffmannIndependent Director

Sun Pharmaceutical Industries Ltd. Share Price Update

Share PriceValue
Today₹1,534.85
Previous Day₹1,500.25

Basic Stock Data of Sun Pharmaceuticals Industries Ltd

Market Cap 3,72,869 Cr.
Current Price 1,554
High / Low1,568/922
Stock P/E39.8
Book Value 249
Dividend Yield0.74 %
ROCE16.4 %
ROE16.6 %
Face Value 1.00

Data Source: screener.in

Competitors of Sun Pharmaceuticals Industries Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Natco Pharma Ltd 18,407 Cr. 1,0281,108/52014.4 2960.92 %17.7 %15.3 % 2.00
Marksans Pharma Ltd 7,137 Cr. 158179/64.322.5 41.40.32 %22.2 %18.6 % 1.00
Abbott India Ltd 60,225 Cr. 28,34129,639/19,90652.6 1,4630.63 %41.1 %31.6 % 10.0
Neuland Laboratories Ltd 8,963 Cr. 6,9867,342/1,54528.3 8830.14 %20.8 %17.9 % 10.0
Ajanta Pharma Ltd 26,951 Cr. 2,1402,355/1,13236.6 2771.69 %22.6 %17.9 % 2.00
Industry Average24,336.60 Cr7,730.6030.88592.080.74%24.88%20.26%5.00

Sun Pharmaceuticals Industries Ltd Quarterly Results

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales8,5538,8378,5239,7199,6269,8639,44710,76210,95211,24110,93111,94112,192
Expenses6,3606,4316,4756,8986,9967,2577,1067,8777,9968,2378,1298,6099,013
Operating Profit2,1932,4062,0482,8212,6302,6062,3402,8842,9573,0042,8023,3323,179
OPM %26%27%24%29%27%26%25%27%27%27%26%28%26%
Other Income544315-562-479223433-3,822285174202-118294
Interest33263035361937141946938149
Depreciation499532553503530554556588610660672651633
Profit before tax2,2052,1639031,8042,2872,466-2,0762,2852,4122,4712,2402,4812,791
Tax %12%11%6%22%9%14%-7%8%6%11%10%19%14%
Net Profit1,9431,9138421,4042,0862,126-2,2272,0932,2562,1811,9832,0062,385
EPS in Rs7.567.723.736.028.538.58-9.498.599.439.038.278.439.90

Sun Pharmaceuticals Industries Ltd Quarterly Chart

Sun Pharmaceuticals Industries Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales8,01911,13116,08027,39228,48731,57826,48929,06632,83833,49838,65443,88647,445
Expenses5,0476,3469,07819,49820,31321,47620,85822,68925,85525,02828,39732,10934,655
Operating Profit2,9724,7847,0037,8948,17410,1025,6316,3776,9838,47010,25811,77712,790
OPM %37%43%44%29%29%32%21%22%21%25%27%27%27%
Other Income702-90-1,968283-42610-135-258382-3,449-3,505333557
Interest284344579523400518555303141127172258
Depreciation2913364091,1951,0381,2651,5001,7532,0532,0802,1442,5292,578
Profit before tax3,3554,3154,5816,4036,5719,0483,4793,8105,0102,7994,4819,40810,512
Tax %9%20%15%14%14%13%26%16%16%18%24%9%
Net Profit3,0423,4693,8795,4765,6587,8462,5423,2084,1722,2723,3898,5138,934
EPS in Rs12.8314.4015.1721.9218.8929.038.7311.1115.6912.1013.6435.3237.12
Dividend Payout %17%9%10%14%5%12%23%25%25%62%73%33%

Sun Pharmaceuticals Industries Ltd Profit & Loss Yearly Chart

Sun Pharmaceuticals Industries Ltd Growth

Compounded Sales Growth
10 Years:15%
5 Years:11%
3 Years:10%
TTM:12%
Compounded Profit Growth
10 Years:10%
5 Years:26%
3 Years:30%
TTM:16%
Stock Price CAGR
10 Years:9%
5 Years:27%
3 Years:32%
1 Year:43%
Return on Equity
10 Years:14%
5 Years:12%
3 Years:14%
Last Year:17%

Sun Pharmaceuticals Industries Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital104104207207241240240240240240240240240
Reserves12,13214,88618,31825,43132,74236,40038,07441,16945,02546,22347,77155,75559,586
Borrowings3212602,5618,9968,4979,83210,38510,5148,3153,8691,2906,8861,928
Other Liabilities3,7625,1288,00914,08913,94814,62415,59812,66614,61517,29120,47417,83117,687
Total Liabilities16,31920,37729,09548,72355,42861,09564,29764,59068,19467,62269,77680,71279,441
Fixed Assets3,9515,6476,81712,68215,87217,67518,85321,83722,84721,55322,66524,42027,892
CWIP3455638422,0392,1752,8012,4651,4111,2201,5671,2874,9731,017
Investments2,2132,4122,7862,7161,8301,1927,1437,90310,1439,61212,84914,83012,868
Other Assets9,81011,75618,65031,28635,55039,42735,83733,43933,98434,89032,97536,48937,664
Total Assets16,31920,37729,09548,72355,42861,09564,29764,59068,19467,62269,77680,71279,441

Sun Pharmaceuticals Industries Ltd Reserves and Borrowings Chart

Aarti Pharmalabs Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 2,2343,3573,9595,6166,6867,0823,9072,1966,5556,1708,9854,959
Cash from Investing Activity -748-2,375-2,176-1,502-3,949-4,186-3,104-310-2,225407-5,556-7,220
Cash from Financing Activity -544-665507-1,187-1,889-2,285-1,539-2,731-5,715-5,980-5,1932,376
Net Cash Flow9423162,2902,927848611-736-844-1,386596-1,765115

Sun Pharmaceuticals Industries Ltd 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%

Sun Pharmaceuticals Industries Ltd Financial Efficiency Indicators Chart

Sun Pharmaceuticals Industries Ltd Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters54.48%54.48%54.48%54.48%54.48%54.48%54.48%54.48%54.48%54.48%54.48%54.48%
FIIs11.67%11.50%12.07%13.00%14.44%14.95%16.00%16.87%16.88%16.48%16.78%17.08%
DIIs21.62%21.97%21.73%20.99%20.02%19.66%19.64%19.08%19.18%19.65%19.56%19.42%
Government0.00%0.00%0.00%0.00%0.00%0.00%0.06%0.06%0.06%0.09%0.10%0.11%
Public12.23%12.05%11.72%11.53%11.06%10.91%9.80%9.52%9.38%9.28%9.05%8.92%
No. of Shareholders7,09,0457,57,3666,75,9086,80,8006,62,3846,47,1676,43,5126,32,3376,25,2526,24,5616,16,5886,12,626

Sun Pharmaceuticals Industries Ltd Shareholding Pattern Chart

No. of Sun Pharmaceuticals Industries Ltd Shareholders

Sun Pharmaceuticals Industries Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
SBI Nifty 50 ETF198684451.432502.33
ICICI Prudential Value Discovery Fund182450026.122297.87
SBI S&P BSE Sensex ETF140742371.651773.35
ICICI Prudential Equity & Debt Fund79734963.371004.22
ICICI Prudential Bluechip Fund77438812.03975.3
Axis Bluechip Fund69502902.64875.35
HDFC Balanced Advantage Fund - Regular Plan67006121.15843.91
Nippon India Pharma Fund655634912.76825.74
Aditya Birla Sun Life Flexi Cap Fund65163594.24820.7
HDFC Top 100 Fund - Regular Plan64340092.68810.33

Sun Pharmaceuticals Industries Ltd ROCE Trend

Sun Pharmaceuticals Industries Ltd EPS Trend

Sun Pharmaceuticals Industries Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue1.001.001.001.001.00
Basic EPS (Rs.)35.3013.6012.1015.7011.10
Diluted EPS (Rs.)35.3013.6012.1015.7011.10
Cash EPS (Rs.)46.2223.1318.1926.0120.68
Book Value[Excl.RevalReserv]/Share (Rs.)247.22212.84206.23204.75186.40
Book Value[Incl.RevalReserv]/Share (Rs.)247.22212.84206.23204.75186.40
Revenue From Operations / Share (Rs.)182.91161.11139.62136.86121.14
PBDIT / Share (Rs.)51.1947.1838.8731.7830.56
PBIT / Share (Rs.)40.6438.2430.2023.2323.26
PBT / Share (Rs.)39.2118.6811.6720.8815.88
Net Profit / Share (Rs.)35.6814.209.5217.4513.38
NP After MI And SOA / Share (Rs.)35.3213.6412.1015.6911.11
PBDIT Margin (%)27.9829.2827.8423.2225.22
PBIT Margin (%)22.2223.7321.6316.9719.19
PBT Margin (%)21.4311.598.3515.2513.10
Net Profit Margin (%)19.508.816.8212.7511.04
NP After MI And SOA Margin (%)19.308.468.6611.469.17
Return on Networth / Equity (%)15.136.816.248.316.43
Return on Capital Employeed (%)16.0217.4414.0610.6011.78
Return On Assets (%)10.494.684.295.514.12
Long Term Debt / Equity (X)0.000.000.010.040.03
Total Debt / Equity (X)0.110.010.070.160.23
Asset Turnover Ratio (%)0.580.560.230.240.20
Current Ratio (X)2.002.041.892.021.79
Quick Ratio (X)1.481.511.331.511.34
Inventory Turnover Ratio (X)0.790.780.690.600.56
Dividend Payout Ratio (NP) (%)29.7365.9653.6836.6217.97
Dividend Payout Ratio (CP) (%)22.8939.8531.2823.7010.84
Earning Retention Ratio (%)70.2734.0446.3263.3882.03
Cash Earning Retention Ratio (%)77.1160.1568.7276.3089.16
Interest Coverage Ratio (X)71.4088.8865.9525.1913.21
Interest Coverage Ratio (Post Tax) (X)51.7763.6047.6015.698.97
Enterprise Value (Cr.)239622.86218440.19143296.7489454.34120917.76
EV / Net Operating Revenue (X)5.465.654.282.724.16
EV / EBITDA (X)19.5119.3015.3611.7316.49
MarketCap / Net Operating Revenue (X)5.375.684.282.573.96
Retention Ratios (%)70.2634.0346.3163.3782.02
Price / BV (X)4.214.573.091.872.78
Price / Net Operating Revenue (X)5.375.684.282.573.96
EarningsYield0.030.010.020.040.02

Sun Pharmaceuticals Industries Ltd Profitability Ratios (%)

Sun Pharmaceuticals Industries Ltd Liquidity Ratios

Sun Pharmaceuticals Industries Ltd Liquidity Ratios (%)

Sun Pharmaceuticals Industries Ltd Interest Coverage Ratios (X)

Sun Pharmaceuticals Industries Ltd Valuation Ratios

Fair Value / Intrinsic Value of Sun Pharmaceuticals Industries Ltd

Fair Value: ₹1657.27

The stock is undervalued by 6.65% compared to the current price ₹1554

*Investments are subject to market risks

Strength and Weakness of Sun Pharmaceuticals Industries Ltd

StrengthWeakness
  1. The stock has a high average ROCE of 19.08%, which is a positive sign.
  2. The company has higher reserves (36,424.00 cr) compared to borrowings (5,665.69 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (28.38 cr) and profit (5.23 cr) over the years.
  1. The stock is trading at a high valuation with an average P/B ratio of 31.11 and average Dividend Yield of 20.75%.
  2. The stock has a high average Working Capital Days of 98.08, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 267.42, which may not be favorable.

Should I Buy Aarti Pharmalabs Ltd Share Now?

  • Based on the analysis of various financial indicators, it may be worth considering investment in Sun Pharmaceuticals Industries Ltd:
    1. Net Profit Margin: 19.50% (Higher values are generally favorable)
      • 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: 16.02% (Industry Average ROCE: 10.28%)
      • 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. Interest Coverage Ratio (Post Tax): 51.77 (Higher values, preferably > 2, are recommended)
      • 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.
    4. Quick Ratio: 1.48 (Higher values, preferably > 1, are recommended)
      • 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.
    5. ✓ Stock P/E: 38.7 (Industry average Stock P/E: 45.34)
      • 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.
    6. ✓ Total Debt / Equity: 0.11 (Lower values, preferably < 1, are preferred)
      • 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.
    While these metrics suggest potential opportunity, it's essential to conduct thorough research or seek advice from financial experts before making any investment decisions.

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