NSEI:SUNPHARMA

Stock Analysis Report

Executive Summary

Sun Pharmaceutical Industries Limited, a generic pharmaceutical company, develops, manufactures, and markets branded and generic formulations and active pharmaceutical ingredients (APIs) in India and internationally.

Snowflake

Fundamentals

Excellent balance sheet average dividend payer.


Similar Companies

Share Price & News

How has Sun Pharmaceutical Industries's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

3.7%

SUNPHARMA

1.4%

IN Pharmaceuticals

1.4%

IN Market


1 Year Return

-32.3%

SUNPHARMA

-20.0%

IN Pharmaceuticals

2.3%

IN Market

Return vs Industry: SUNPHARMA underperformed the Indian Pharmaceuticals industry which returned -20% over the past year.

Return vs Market: SUNPHARMA underperformed the Indian Market which returned 2.3% over the past year.


Shareholder returns

SUNPHARMAIndustryMarket
7 Day3.7%1.4%1.4%
30 Day-4.6%-7.1%2.7%
90 Day-4.7%-5.2%-1.4%
1 Year-31.9%-32.3%-19.3%-20.0%4.3%2.3%
3 Year-45.3%-46.1%-27.3%-28.8%20.9%14.9%
5 Year-49.4%-50.4%-11.9%-14.6%41.2%28.2%

Price Volatility Vs. Market

How volatile is Sun Pharmaceutical Industries's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Sun Pharmaceutical Industries undervalued compared to its fair value and its price relative to the market?

32.17x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: SUNPHARMA (₹401.5) is trading above our estimate of fair value (₹262.13)

Significantly Undervalued: SUNPHARMA is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: SUNPHARMA is poor value based on its PE Ratio (32.2x) compared to the Pharmaceuticals industry average (15.6x).

PE vs Market: SUNPHARMA is poor value based on its PE Ratio (32.2x) compared to the Indian market (13x).


Price to Earnings Growth Ratio

Low PEG Ratio: SUNPHARMA is poor value based on its PEG Ratio (1.9x)


Price to Book Ratio

PB vs Industry: SUNPHARMA is overvalued based on its PB Ratio (2.3x) compared to the IN Pharmaceuticals industry average (1.5x).


Next Steps

Future Growth

How is Sun Pharmaceutical Industries forecast to perform in the next 1 to 3 years based on estimates from 27 analysts?

17.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SUNPHARMA's forecast earnings growth (17.4% per year) is above the savings rate (7.6%).

Earnings vs Market: SUNPHARMA's earnings (17.4% per year) are forecast to grow slower than the Indian market (18.1% per year).

High Growth Earnings: SUNPHARMA's earnings are forecast to grow, but not significantly.

Revenue vs Market: SUNPHARMA's revenue (9.8% per year) is forecast to grow slower than the Indian market (11.4% per year).

High Growth Revenue: SUNPHARMA's revenue (9.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: SUNPHARMA's Return on Equity is forecast to be low in 3 years time (11.4%).


Next Steps

Past Performance

How has Sun Pharmaceutical Industries performed over the past 5 years?

-13.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: SUNPHARMA's earnings have declined by -13.4% per year over the past 5 years.

Accelerating Growth: SUNPHARMA's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: SUNPHARMA had negative earnings growth (-16.1%) over the past year, making it difficult to compare to the Pharmaceuticals industry average (14.4%).


Return on Equity

High ROE: SUNPHARMA's Return on Equity (7.9%) is considered low.


Return on Assets

ROA vs Industry: SUNPHARMA's Return on Assets is below or equal to the Pharmaceuticals industry average last year.


Return on Capital Employed

ROCE Improving: SUNPHARMA's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Sun Pharmaceutical Industries's financial position?


Financial Position Analysis

Short Term Liabilities: SUNPHARMA's short term assets (₹310.7B) exceeds its short term liabilities (₹173.4B)

Long Term Liabilities: SUNPHARMA's short term assets (310.7B) exceeds its long term liabilities (26.3B)


Debt to Equity History and Analysis

Debt Level: SUNPHARMA's debt to equity ratio (23.2%) is considered satisfactory

Reducing Debt: SUNPHARMA's debt to equity ratio has increased from 12.4% to 23.2% over the past 5 years.

Debt Coverage: SUNPHARMA's debt is well covered by operating cash flow (21.2%).

Interest Coverage: SUNPHARMA earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

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

Debt Coverage by Assets: SUNPHARMA's debt is covered by short term assets (assets are 2.993250x debt).


Next Steps

Dividend

What is Sun Pharmaceutical Industries's current dividend yield, its reliability and sustainability?

0.68%

Current Dividend Yield


Dividend Yield vs Market

company0.7%marketbottom25%0.6%markettop25%2.5%industryaverage0.9%forecastin3Years0.8%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: SUNPHARMA's dividend (0.68%) is higher than the bottom 25% of dividend payers in the Indian market (0.61%).

High Dividend: SUNPHARMA's dividend (0.68%) is low compared to the top 25% of dividend payers in the Indian market (2.51%).

Stable Dividend: SUNPHARMA's dividend payments have been volatile in the past 10 years.

Growing Dividend: SUNPHARMA's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (22%), SUNPHARMA's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SUNPHARMA's dividends in 3 years are forecast to be thoroughly covered by earnings (13.9% payout ratio).


Next Steps

Management

What is the CEO of Sun Pharmaceutical Industries's salary, the management and board of directors tenure and is there insider trading?

2.7yrs

Average management tenure


CEO

Dilip Shanghvi (64yo)

0yrs

Tenure

₹262,801

Compensation

Mr. Dilip Shantilal Shanghvi has been the Chairman and Managing Director of Sun Pharma Advanced Research Company Limited since March 1, 2012. Mr. Shanghvi Founded Sun Pharmaceutical Industries Limited in 1 ...


CEO Compensation Analysis

Compensation vs. Market: Dilip's total compensation ($USD3.68K) is too low to compare against companies of similar size in the Indian market ($USD997.50K).

Compensation vs Earnings: Dilip's compensation has been consistent with company performance over the past year.


Management Age and Tenure

2.7yrs

Average Tenure

64yo

Average Age

Experienced Management: SUNPHARMA's management team is considered experienced (2.7 years average tenure).


Board Age and Tenure

6.5yrs

Average Tenure

64.5yo

Average Age

Experienced Board: SUNPHARMA's board of directors are considered experienced (6.5 years average tenure).


Insider Trading

Insider Buying: SUNPHARMA insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Buy₹202,395,81125 Sep 19
Shanghvi Finance Pvt Ltd
EntityCompany
Shares500,000
Max Price₹404.79
Buy₹83,857,52521 Sep 19
Shanghvi Finance Pvt Ltd
EntityCompany
Shares200,000
Max Price₹419.29
Buy₹164,693,54619 Sep 19
Shanghvi Finance Pvt Ltd
EntityCompany
Shares400,000
Max Price₹411.73
Sell₹3,482,53416 Sep 19
Sailesh Desai
EntityIndividual
Role
Member of the Board of Directors
Whole Time Director
Shares8,000
Max Price₹438.38
Sell₹5,607,21311 Sep 19
Sailesh Desai
EntityIndividual
Role
Member of the Board of Directors
Whole Time Director
Shares13,000
Max Price₹434.00
Buy₹170,236,46406 Sep 19
Shanghvi Finance Pvt Ltd
EntityCompany
Shares400,000
Max Price₹425.59
Buy₹412,282,56805 Sep 19
Shanghvi Finance Pvt Ltd
EntityCompany
Shares1,000,000
Max Price₹412.28
Buy₹610,775,44830 Aug 19
Shanghvi Finance Pvt Ltd
EntityCompany
Shares1,400,000
Max Price₹438.76
Sell₹21,790,63327 Jun 19
Sailesh Desai
EntityIndividual
Role
Member of the Board of Directors
Whole Time Director
Shares57,000
Max Price₹400.61
Sell₹56,570,22724 Jun 19
Sailesh Desai
EntityIndividual
Role
Member of the Board of Directors
Whole Time Director
Shares150,000
Max Price₹379.25
Sell₹24,113,15310 Apr 19
Pratham Investments
EntityCompany
Shares50,000
Max Price₹482.26
Sell₹11,975,52310 Apr 19
Jayant Sanghvi
EntityIndividual
Shares25,000
Max Price₹479.02
Sell₹90,828,83501 Apr 19
Pratham Investments
EntityCompany
Shares190,227
Max Price₹479.80
Sell₹152,461,06920 Mar 19
Pratham Investments
EntityCompany
Shares362,119
Max Price₹472.34
Sell₹175,261,89120 Mar 19
Jayant Sanghvi
EntityIndividual
Shares377,881
Max Price₹464.83
Sell₹232,113,73014 Mar 19
Jayant Sanghvi
EntityIndividual
Shares500,000
Max Price₹470.91
Buy₹2,277,06023 Jan 19
Rakesh Mehta
EntityIndividual
Shares6,000
Max Price₹379.51
Sell₹16,244,54814 Dec 18
Rita Desai
EntityIndividual
Shares38,200
Max Price₹425.25
Sell₹3,963,72007 Dec 18
Rajinder Jalali
EntityIndividual
Shares7,772
Max Price₹510.00
Sell₹2,704,60704 Dec 18
Nayna Daptardar
EntityIndividual
Shares5,500
Max Price₹491.75
Buy₹1,458,06004 Dec 18
Nayna Daptardar
EntityIndividual
Shares3,000
Max Price₹486.02
Buy₹1,575,50420 Nov 18
Nayna Daptardar
EntityIndividual
Shares3,000
Max Price₹525.17
Sell₹8,619,74926 Oct 18
Rita Desai
EntityIndividual
Shares15,000
Max Price₹574.65

Ownership Breakdown


Management Team

  • Dilip Shanghvi (64yo)

    MD & Executive Director

    • Tenure: 0yrs
    • Compensation: ₹262.80k
  • Sailesh Desai (65yo)

    Whole Time Director

    • Tenure: 20.6yrs
    • Compensation: ₹14.23m
  • Arun Sawhney (64yo)

    President

    • Tenure: 0yrs
  • Kal Subramanian (65yo)

    CEO of India Business and Emerging Markets & Whole-Time Director

    • Tenure: 2.7yrs
  • Indrajit Banerjee (63yo)

    President

    • Tenure: 0yrs
  • C. Muralidharan (56yo)

    Chief Financial Officer

    • Tenure: 2.3yrs
    • Compensation: ₹3.28m
  • Sunil Ajmera

    Company Secretary

    • Tenure: 8.5yrs
    • Compensation: ₹1.37m
  • Govind Jaju

    President and Global Head of Technical Operations

    • Tenure: 0yrs
  • Davinder Singh

    Senior Vice-President of Sun Pharmaceutical Global Operations

    • Tenure: 0yrs
  • Atanu Roy

    Senior VP & Chief Information Officer

    • Tenure: 0yrs

Board Members

  • Israel Makov (80yo)

    Chairman of the Board

    • Tenure: 7.4yrs
    • Compensation: ₹900.00k
  • Dilip Shanghvi (64yo)

    MD & Executive Director

    • Tenure: 0yrs
    • Compensation: ₹262.80k
  • Sudhir Valia (63yo)

    Non-Executive & Non-Independent Director

    • Tenure: 14.7yrs
    • Compensation: ₹79.20k
  • Sailesh Desai (65yo)

    Whole Time Director

    • Tenure: 20.6yrs
    • Compensation: ₹14.23m
  • Gautam Doshi (66yo)

    Non-Executive Independent Director

    • Tenure: 1.4yrs
    • Compensation: ₹1.30m
  • Kal Subramanian (65yo)

    CEO of India Business and Emerging Markets & Whole-Time Director

    • Tenure: 2.7yrs
  • Vivek Sehgal (63yo)

    Additional Independent Director

    • Tenure: 1.9yrs
    • Compensation: ₹600.00k
  • Rekha Sethi (56yo)

    Non-Executive Independent Director

    • Tenure: 5.7yrs
    • Compensation: ₹1.50m

Company Information

Sun Pharmaceutical Industries Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Sun Pharmaceutical Industries Limited
  • Ticker: SUNPHARMA
  • Exchange: NSEI
  • Founded: 1983
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: ₹959.014b
  • Shares outstanding: 2.40b
  • Website: https://www.sunpharma.com

Number of Employees


Location

  • Sun Pharmaceutical Industries Limited
  • Sun House
  • Plot No. 201 B/1
  • Mumbai
  • Maharashtra
  • 400063
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
524715BSE (Mumbai Stock Exchange)YesEquity SharesININRFeb 1995
SUNPHARMANSEI (National Stock Exchange of India)YesEquity SharesININRFeb 1995

Biography

Sun Pharmaceutical Industries Limited, a generic pharmaceutical company, develops, manufactures, and markets branded and generic formulations and active pharmaceutical ingredients (APIs) in India and inter ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/17 12:47
End of Day Share Price2019/10/17 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.