[Infographics] Sun Pharma | Eight Sun Pharma Fundamental Tips You Need to Learn Now

Sun Pharmaceuticals Industries is working in manufacturing, developing, and spreading a large range of branded and generic formulations and Active Pharmaceutical Ingredients (APIs).  

Sun Pharma is also India’s largest and pharmaceutical company. Its global presence is supported by several manufacturing facilities across a few continents. In the US market which contributes a significant share of its revenues, the company is the leader in the generic dermatology segment.

Healthcare Sector

Large Capital of ₹1,90,747 Cr

Sun Pharmaceutical Industries was established back in the year 1983 with five psychiatry products and a two-person marketing team.

Sun Pharma is one of the largest specialty generic pharmaceutical companies in the world. It provides high-quality, affordable medicines trusted by healthcare professionals and patients in many countries worldwide.

It has strong capabilities in developing generic and complex products with a robust pipeline of many ANDAs, including high-value First-to-File (FTF) opportunities.

It has an established presence in Europe and key high-growth Emerging Markets (EM) like Russia, Romania, South Africa, Brazil, and Malaysia.

 The company’s primary focus is to in-license generic and differentiated generic products that are close to commercialization or in an advanced stage of development for North America, Western Europe, and Japan markets.

The company is the market leader in India and it is interested in partnerships for late-stage and/or marketed opportunities complementary to its commercial footprint or expansion within its core areas of focus in India.

These include CNS disorders, Cardiology, Diabetes, and Metabolic disorders, Gastroenterology, Ophthalmology, Oncology, Pain, Rheumatology, Allergy, Asthma and Inflammation, and Gynecology.

Its focus is for NCEs, NBEs, NDDS based differentiated products, Biosimilars, Proprietary Technology Barrier Products which provide it the first-mover advantage in India. The company’s leadership position in India allows it to offer significant value to innovator companies who want to partner with a dynamic and leading company, are capable of successfully marketing its assets, and are willing to give the right priority to in-licensed or partnered projects.

The business area of the company

The company is among the largest specialty generic pharmaceutical company and India’s top pharmaceutical companies. A vertically integrated business and a skilled team enable it to deliver high-quality products, trusted by customers and patients in many countries across the world, at affordable prices.

Products

  • Formulations
  • Active Pharmaceutical Ingredients – Crams
  • OTC

Sun Pharma Today

SUN PHARMACEUTICAL
SUNPHARMA.NS
₹ 753.60
0.33952305%
Marketcap
1.81T
Volume
₹ 5,503,394.00
Shares
2,399,330,048
Range
₹ 746.05 - ₹ 761.65
52 Week Range
₹ 512.65 - ₹ 851.00
SUN PHARMACEUTICAL
sector
Healthcare
industryDrug Manufacturers—Specialty & Generic
addressSun House, Mumbai, India
countryIndia
phone91 22 4324 4324
websitehttp://www.sunpharma.com
SUN PHARMACEUTICAL
₹ 753.60
Open ₹ 751.00
High ₹ 761.65
Marketcap 1.81T
Close ₹ 753.60
Low ₹ 746.05
Volume ₹ 5,503,394.00

Sun Pharma Chart

Sun Pharma Index presence

NIFTY100WEIGHTNIFTYEQWGTNIFTY100NIFTYNIFTY500NIFTYPHARMANIFTYLGEMID250
NIFTY200NV20LIQ15SENSEXBSE HCBSE500SNSX50
BSE100BSE200LMI250ALLLCAPLRGCAPBSE100LARGECAPTMCGREENEX
CARBONEXMFGS&PDIVSTABLEESG100SHA500S&PLARGEMIDCAP 

Sun Pharma Infographics

Sun Pharma Infographics by Kamlesh Rode
Sun Pharma Infographics by Kamlesh Rode created in Figma.com

Overview of Sun Pharma

sun pharma infographics overview
PE RatioSector PEPB RatioSector PBDividend YieldSector Div Yld
65.6938.293.865.110.94%0.68%
  • Current price of share is lower then intrinsic value.
  • This stock offered good return as compared to fixed-deposit.
  • Low dividend returns in past.
  • This stock is not in ASM/GSM list.

Read more about PE ratio with infographics | Read more about dividend and dividend yield with infographics

Financials of Sun Pharma

Sun pharma Infographics financials

Income Statement Table

Financial YearFY 2018FY 2019FY 2020FY 2021
Total Revenue27,328.2230,091.4033,489.0934,357.31
EBITDA5,496.396,118.707,365.105,020.75
PBIT3,996.554,365.455,312.322,940.80
PBT3,478.983,810.205,009.592,799.37
Net Income2,095.702,665.423,764.932,903.82
EPS8.7311.1115.6912.1
DPS22.7547.5
Payout ratio0.230.250.250.62
EPS and DPS in ₹. Other numbers except for Payout Ratio in ₹ cr

Income Statement

Lower than Industry Revenue Growth

Over the last 5 years, revenue has grown at a yearly rate of 3.35%, vs industry avg of 6.96%

Lower than Industry Net Income

Over the last 5 years, net income has grown at a yearly rate of -8.57%, vs industry avg of 7.95%

Decreasing Market Share

Over the last 5 years, market share decreased from 15.92% to 13.37%

Balance Sheet Table

Financial YearFY 2018FY 2019FY 2020FY 2021
Current Assets31,635.9031,069.1931,654.1630,442.08
Non-Current Assets32,661.4933,520.3436,540.1637,180.14
Total Assets64,297.3964,589.5368,194.3267,622.22
Current Liabilities19,864.3217,339.6215,706.4316,145.63
Non-Current Liabilities2,234.802,527.313,363.201,996.76
Total Liabilities22,099.1219,866.9319,069.6318,142.39
Total Equity42,198.2744,722.6049,124.6949,479.83
Total Liabilities & Shareholder’s Equity64,297.3964,589.5368,194.3267,622.22
Total Common Shares Outstanding239.93239.93239.93239.93
Shares outstanding numbers in cr. Other numbers in ₹ cr

Balance Sheet

Lower than Industry Debt to Equity Ratio

Over the last 5 years, the debt to equity ratio has been 19.44%, vs industry avg of 39.7%

Higher than Industry Current Ratio

Over the last 5 years, the current ratio has been 182.55%, vs industry avg of 165.24%

Cash Flow Statement Table

Financial YearFY 2018FY 2019FY 2020FY 2021
Net Change in Cash-735.91-844.15-1,385.69596.42
Changes in Working Capital-954.05-3,582.41-447.361,561.15
Capital Expenditures1,960.783,212.821,542.001,170.13
Free Cash Flow1,946.37-1,016.375,012.775,000.24
All numbers in ₹ cr

Cash Flow Statement

Lower than Industry Free Cash Flow Growth

Over the last 5 years, free cash flow growth has been 8.78%, vs an industry avg of 36.96%

Peers of Sun Pharma

Sun pharma Infographics - peers
StockPE RatioPB RatioDividend Yield
Sun Pharmaceutical Industries Ltd65.693.860.94%
Dr. Reddy’s Laboratories Ltd39.614.380.54%
Cipla Ltd30.363.930.55%
Gland Pharma Ltd60.9810.3
  • Sun Pharma gave more than 65 price to earnings ratio than its peers
  • This share gave fair dividend yield as compare to peers.

Read more about PE ratio with infographics and Dividend infographics

Shareholders of Sun Pharma

Sun pharma Infographics holdings

Promoter Holdings Trend

Total Promoter Holding

In last 6 months, promoter holding in the company has almost stayed constant

Low Pledged Promoter Holding

Pledged promoter holdings are insignificant

Institutional Holdings Trend

Mutual Fund Holding

In the last 3 months, the mutual fund holding of the company has almost stayed constant

Foreign Institutional Holding

In the last 3 months, foreign institutional holding of the company has almost stayed constant

InvestorsDec-18Mar-19Jun-19Sep-19Dec-19Mar-20Jun-20Sep-20Dec-20Mar-21Jun-21Sep-21
Promoters 54.3854.3854.3854.5554.5654.6954.6954.6954.4854.4854.4854.48
FIIs 14.8815.5414.9314.713.8912.8112.712.3812.1911.6711.512.07
DIIs 17.6517.3217.9818.5319.0719.5620.1120.4520.8421.6221.9721.73
Public 13.0912.7612.7112.2312.4812.9412.5112.4812.4912.2312.0511.72

Dividend and Split

Sun pharma infographics dividend

Dividend Table

Cash DividendDividend/ShareEx Date
Final₹2.0023-Aug-21
Cash DividendDividend/ShareEx Date
Interim₹5.509-Feb-21
Cash DividendDividend/ShareEx Date
Final₹1.0019-Aug-20
Cash DividendDividend/ShareEx Date
Interim₹3.0017-Feb-20
Cash DividendDividend/ShareEx Date
Final₹2.7520-Aug-19

Read more about dividend and dividend yield with infographics

BuybackRatioEx Date
Tender Offer14-Jul-16
Share SplitRatioEx Date
Face Value Change from 5 To 11:0525-Nov-10

Know more about Stock split in company with infographics

Strength and Limitations

Strength

  • The company has shown a good profit growth of 91.30% for the Past 3 years.
  • Company has a healthy Interest coverage ratio of 9.38.

Limitations

  • The company has shown a poor revenue growth of 12.54% for the Past 3 years.
  • Tax rate is low at 0.61.
  • The company is trading at a high PE of 96.09.
  • The company is trading at a high EV/EBITDA of 66.35.

Expert Forecast

Sun pharma Infographics expert forecast

The stock forecast of Sun Pharma stock for the year 2022

HIGH

Rs.1031

MEDIAN

Rs.911

LOW

Rs.582

Future stock price targets of Sun Pharma stock

Target of Sun pharmaFuture Stock Price
2022880 to 1000
20251100 to 1150
20301600 to 1650
20352400 to 2450
20403800 to 3900

Please Note

All the views and contents mentioned in this blog are merely for educational purposes and are not recommendations or tips offered to any person(s) with respect to the purchase or sale of the stocks / futures. I do not accept any liability/loss accruing from the use of any content from this blog. All readers of this blog must rely on their own discretion and neither any analyst nor any publisher shall be responsible for the outcome.

Stock Forecast Predictions

Sun pharma Infographics future forecast

With the calculations on the basis of CAGR, the long-term investment in Sun Pharma comes very amazing numbers. Look at the table below

Long term Prediction of SBIN Stock10 Stocks worth Rs.81100
1 YearRs.90,070
5 YearsRs.1,37,028
10 YearsRs.2,31,525
15 YearsRs.3,91,188
20 YearsRs.6,60,959
25 YearsRs.11,16,767
Future values are calculated using 11.6% CAGR (Sun Pharma)

Read How Rs.10,000 converted into 1770 Crores Wipro case study?

Conclusion

Sun Pharma is India’s largest and pharmaceutical company. Its global presence is supported by several manufacturing facilities across a few continents. In the US market which contributes a significant share of its revenues, the company is the leader in the generic dermatology segment.

During the Covid-19 period, this stock crashed many record highs and is now in a settled position.

Once India used to import more than 90% of medicines but today its medicinal import reached 10%.

After our successful Covid-19 vaccination drive of 100 crores, it is clearly seen that in next future pharmaceutical industry will be the biggest in the world.

Let’s look at the ratio of Sun Pharma

PE RatioSector PEPB RatioSector PBDividend YieldSector Div Yld
65.6938.293.865.110.94%0.68%

Check Sun Pharma on NSE website

Frequently Asked Questions

Que: What is Sun Pharma famous for?

Ans: Sun Pharmaceuticals Industries is famous for manufacturing, developing, and spreading a large range of branded and generic formulations and Active Pharmaceutical Ingredients (APIs). Sun Pharma is one of the largest specialty generic pharmaceutical companies in the world. It provides high-quality, affordable medicines trusted by healthcare professionals and patients in many countries worldwide

Que: Is Sun Pharma a good company?

Ans: Yes, Sun Pharma is one of the largest specialty generic pharmaceutical companies in the world. It provides high-quality, affordable medicines trusted by healthcare professionals and patients in many countries worldwide.

Que: Who is the owner of Sun Pharma?

Ans: Dilip Shanghvi is the founder of Sun Pharmaceutical Industries Ltd. and has extensive industrial experience in the pharmaceutical industry.

Que: Where are Sun Pharmaceuticals manufactured?

Ans: Sun Pharmaceutical Industries Limited (d/b/a Sun Pharma) is an Indian multinational pharmaceutical company headquartered in Mumbai, Maharashtra, that manufactures and sells pharmaceutical formulations and active pharmaceutical ingredients (APIs) primarily in India and the United States.

Que: Is Sun Pharma overvalued?

Ans:  SUN PHARMA is overvalued based on its PB Ratio (4.2x) compared to the IN Pharmaceuticals industry average (3x).

Que: What is Sun Pharma’s target share price in 2022?

Ans: The target price of Sun Pharma shares in 2022 should be more than 1000.

Que: What is Sun Pharma’s target share price in 2025?

Ans: The target price of Sun Pharma shares in 2022 should be more than 1100.

Why Stock forecast by Kamlesh Rode?

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“I love to help people in technology, spirituality and always want people to get better in their lives. Today I’m a stock market enthusiast, a stock trader, web-mobile app developer, blogger, and a spiritual being.”

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