NSEI:SPARC

Stock Analysis Report

Sun Pharma Advanced Research

Executive Summary

Sun Pharma Advanced Research Company Limited engages in the research and development of pharmaceutical products in India and internationally.

Snowflake

Fundamentals

Flawless balance sheet with weak fundamentals.

Share Price & News

How has Sun Pharma Advanced Research's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

2.1%

SPARC

2.1%

IN Pharmaceuticals

1.6%

IN Market


1 Year Return

-62.5%

SPARC

-21.1%

IN Pharmaceuticals

0.8%

IN Market

Return vs Industry: SPARC underperformed the Indian Pharmaceuticals industry which returned -21.1% over the past year.

Return vs Market: SPARC underperformed the Indian Market which returned 0.8% over the past year.


Shareholder returns

SPARCIndustryMarket
7 Day2.1%2.1%1.6%
30 Day-26.1%-6.9%1.5%
90 Day-17.1%-7.2%-3.3%
1 Year-62.5%-62.5%-20.4%-21.1%2.7%0.8%
3 Year-61.9%-61.9%-26.3%-27.8%22.0%16.0%
5 Year-37.0%-37.4%-11.1%-13.8%42.3%29.3%

Price Volatility Vs. Market

How volatile is Sun Pharma Advanced Research's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Sun Pharma Advanced Research undervalued compared to its fair value and its price relative to the market?

10.51x

Price to Book (PB) ratio


Share Price vs. Fair Value

Undervalued: Insufficient data to calculate SPARC's fair value to establish if it is undervalued.

Significantly Undervalued: Insufficient data to calculate SPARC's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: SPARC is unprofitable, so we can't compare its PE Ratio to the Pharmaceuticals industry average.

PE vs Market: SPARC is unprofitable, so we can't compare its PE Ratio to the Indian market.


Price to Earnings Growth Ratio

Low PEG Ratio: Insufficient data to calculate SPARC's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: SPARC is overvalued based on its PB Ratio (10.5x) compared to the IN Pharmaceuticals industry average (1.5x).


Next Steps

  • Explore potentially undervalued companies in the Pharmaceuticals & Biotech industry.

Future Growth

How is Sun Pharma Advanced Research forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

15.4%

Forecasted Pharmaceuticals & Biotech industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Sun Pharma Advanced Research has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Sun Pharma Advanced Research performed over the past 5 years?

-36.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: SPARC is unprofitable, and losses have increased over the past 5 years at a rate of -36.4% per year.

Accelerating Growth: Unable to compare SPARC's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: SPARC is unprofitable, making it difficult to compare its past year earnings growth to the Pharmaceuticals industry (16.4%).


Return on Equity

High ROE: SPARC has a negative Return on Equity (-59.12%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: SPARC is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: SPARC is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Sun Pharma Advanced Research's financial position?


Financial Position Analysis

Short Term Liabilities: SPARC's short term assets (₹2.6B) exceeds its short term liabilities (₹950.4M)

Long Term Liabilities: SPARC's short term assets (2.6B) exceeds its long term liabilities (72.0M)


Debt to Equity History and Analysis

Debt Level: SPARC's debt to equity ratio (0.6%) is considered satisfactory

Reducing Debt: SPARC's debt to equity ratio has reduced from 3.7% to 0.6% over the past 5 years.


Balance Sheet

Inventory Level: SPARC has a high level of physical assets or inventory.

Debt Coverage by Assets: SPARC's debt is covered by short term assets (assets are 157.352810x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: SPARC has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: SPARC has sufficient cash runway for 1.058051 years if free cash flow continues to reduce at historical rates of -13.5% each year.


Next Steps

Dividend

What is Sun Pharma Advanced Research's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%0.6%markettop25%2.5%industryaverage0.9%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate SPARC's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate SPARC's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if SPARC's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if SPARC's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of SPARC's dividend in 3 years as they are not forecast to pay a notable one for the Indian market.


Next Steps

Management

What is the CEO of Sun Pharma Advanced Research's salary, the management and board of directors tenure and is there insider trading?

5.0yrs

Average management tenure


CEO

Anil Raghavan 0

5.5yrs

Tenure

0

Mr. Anil Raghavan has been the Chief Executive Officer of Sun Pharma Advanced Research Company Limited since April 24, 2014. Mr. Raghavan is a senior pharmaceutical services executive with significant glob ...


Management Age and Tenure

5.0yrs

Average Tenure

61.5yo

Average Age

Experienced Management: SPARC's management team is considered experienced (5 years average tenure).


Board Age and Tenure

7.6yrs

Average Tenure

63.5yo

Average Age

Experienced Board: SPARC's board of directors are considered experienced (7.6 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Sell₹24,928,70427 Mar 19
Pratham Investments
EntityCompany
Shares125,000
Max Price₹199.43

Ownership Breakdown


Management Team

  • Dilip Shanghvi (64yo)

    Chairman & MD

    • Tenure: 7.6yrs
  • Nitin Damle

    Senior VP & Chief Innovation Officer

    • Tenure: 0yrs
  • Subhas Bhowmick (63yo)

    Senior Vice President

    • Tenure: 0yrs
  • Trinadha Chitturi (60yo)

    Senior Vice President of R&D

    • Tenure: 0yrs
  • Nitin Dharmadhikari (57yo)

    Executive Vice President of R&D (Formulation Development)

    • Tenure: 0yrs
  • Anil Raghavan

    Chief Executive Officer

    • Tenure: 5.5yrs
  • Debashis Day

    Compliance Officer & Company Secretary

    • Tenure: 4.4yrs
    • Compensation: ₹3.13m
  • Chetan Rajpara

    Chief Financial Officer

    • Tenure: 2.7yrs
    • Compensation: ₹13.28m
  • Siu-Long Yao

    Senior Vice President of Clinical Development & Operations

    • Tenure: 0yrs
  • Kristine Nograles

    Vice President and Head of Dermatology & Rheumatology

    • Tenure: 0yrs

Board Members

  • Dilip Shanghvi (64yo)

    Chairman & MD

    • Tenure: 7.6yrs
  • Sudhir Valia (63yo)

    Non-Executive Director

    • Tenure: 13.6yrs
    • Compensation: ₹540.00k
  • Bhavna Doshi (66yo)

    Independent Director

    • Tenure: 0yrs
    • Compensation: ₹690.00k
  • Thennati Rajamannar (57yo)

    Non-Executive Director

    • Tenure: 12.3yrs
    • Compensation: ₹330.00k
  • Ferzaan Engineer

    Additional Independent Director

    • Tenure: 2.4yrs
    • Compensation: ₹600.00k
  • Mark Simon

    Additional Independent Director

    • Tenure: 2.4yrs
    • Compensation: ₹600.00k

Company Information

Sun Pharma Advanced Research Company Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Sun Pharma Advanced Research Company Limited
  • Ticker: SPARC
  • Exchange: NSEI
  • Founded: 2006
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: ₹30.358b
  • Shares outstanding: 262.05m
  • Website: https://www.sparc.life

Number of Employees


Location

  • Sun Pharma Advanced Research Company Limited
  • 17-B, Mahal Industrial Estate
  • Off Mahakali Caves Road
  • Mumbai
  • Maharashtra
  • 400093
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
532872BSE (Mumbai Stock Exchange)YesEquity SharesININRJul 2007
SPARCNSEI (National Stock Exchange of India)YesEquity SharesININRJul 2007

Biography

Sun Pharma Advanced Research Company Limited engages in the research and development of pharmaceutical products in India and internationally. The company develops new chemical entities or reformulated prod ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 12:46
End of Day Share Price2019/10/14 00:00
Earnings2019/06/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.