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Sun Pharmaceutical Industries

NSEI:SUNPHARMA
Snowflake Description

Excellent balance sheet with moderate growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
SUNPHARMA
NSEI
₹1,110B
Market Cap
  1. Home
  2. IN
  3. Pharmaceuticals & Biotech
Company description

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. The last earnings update was 64 days ago. More info.


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SUNPHARMA Share Price and Events
7 Day Returns
-2%
NSEI:SUNPHARMA
0.8%
IN Pharmaceuticals
1.2%
IN Market
1 Year Returns
-9.7%
NSEI:SUNPHARMA
1.1%
IN Pharmaceuticals
-0%
IN Market
SUNPHARMA Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Sun Pharmaceutical Industries (SUNPHARMA) -2% -0.7% 8.4% -9.7% -44.2% -26.1%
IN Pharmaceuticals 0.8% 1.3% 0.8% 1.1% -11.2% 37.8%
IN Market 1.2% 2.8% 5.7% -0% 41.8% 73.7%
1 Year Return vs Industry and Market
  • SUNPHARMA underperformed the Pharmaceuticals industry which returned 1.1% over the past year.
  • SUNPHARMA underperformed the Market in India which returned -0% over the past year.
Price Volatility
SUNPHARMA
Industry
5yr Volatility vs Market

SUNPHARMA Value

 Is Sun Pharmaceutical Industries undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Sun Pharmaceutical Industries to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Sun Pharmaceutical Industries.

NSEI:SUNPHARMA Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 24 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 14.8%
Perpetual Growth Rate 10-Year IN Government Bond Rate 7.6%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NSEI:SUNPHARMA
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year IN Govt Bond Rate 7.6%
Equity Risk Premium S&P Global 8.6%
Pharmaceuticals Unlevered Beta Simply Wall St/ S&P Global 0.73
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.726 (1 + (1- 35%) (9.66%))
0.847
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.85
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 7.55% + (0.847 * 8.6%)
14.84%

Discounted Cash Flow Calculation for NSEI:SUNPHARMA using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Sun Pharmaceutical Industries is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NSEI:SUNPHARMA DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (INR, Millions) Source Present Value
Discounted (@ 14.84%)
2019 41,725.88 Analyst x8 36,335.10
2020 42,059.69 Analyst x13 31,893.92
2021 53,222.08 Analyst x13 35,144.27
2022 58,210.96 Est @ 9.37% 33,472.52
2023 63,349.00 Est @ 8.83% 31,720.81
2024 68,697.94 Est @ 8.44% 29,954.99
2025 74,314.37 Est @ 8.18% 28,217.54
2026 80,250.50 Est @ 7.99% 26,534.75
2027 86,555.39 Est @ 7.86% 24,921.96
2028 93,276.03 Est @ 7.76% 23,387.25
Present value of next 10 years cash flows ₹301,583.11
NSEI:SUNPHARMA DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= ₹93,276.03 × (1 + 7.55%) ÷ (14.84% – 7.55%)
₹1,376,812.99
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= ₹1,376,812.99 ÷ (1 + 14.84%)10
₹345,210.51
NSEI:SUNPHARMA Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= ₹301,583.11 + ₹345,210.51
₹646,793.62
Equity Value per Share
(INR)
= Total value / Shares Outstanding
= ₹646,793.62 / 2,399.33
₹269.57
NSEI:SUNPHARMA Discount to Share Price
Calculation Result
Value per share (INR) From above. ₹269.57
Current discount Discount to share price of ₹462.55
= -1 x (₹462.55 - ₹269.57) / ₹269.57
-71.6%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Sun Pharmaceutical Industries is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Sun Pharmaceutical Industries's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Sun Pharmaceutical Industries's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NSEI:SUNPHARMA PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in INR ₹14.33
NSEI:SUNPHARMA Share Price ** NSEI (2019-04-16) in INR ₹462.55
India Pharmaceuticals Industry PE Ratio Median Figure of 112 Publicly-Listed Pharmaceuticals Companies 20.36x
India Market PE Ratio Median Figure of 2,735 Publicly-Listed Companies 16.29x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Sun Pharmaceutical Industries.

NSEI:SUNPHARMA PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NSEI:SUNPHARMA Share Price ÷ EPS (both in INR)

= 462.55 ÷ 14.33

32.28x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Sun Pharmaceutical Industries is overvalued based on earnings compared to the IN Pharmaceuticals industry average.
  • Sun Pharmaceutical Industries is overvalued based on earnings compared to the India market.
Price based on expected Growth
Does Sun Pharmaceutical Industries's expected growth come at a high price?
Raw Data
NSEI:SUNPHARMA PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 32.28x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 24 Analysts
31%per year
India Pharmaceuticals Industry PEG Ratio Median Figure of 32 Publicly-Listed Pharmaceuticals Companies 1.39x
India Market PEG Ratio Median Figure of 585 Publicly-Listed Companies 1.32x

*Line of best fit is calculated by linear regression .

NSEI:SUNPHARMA PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 32.28x ÷ 31%

1.04x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Sun Pharmaceutical Industries is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Sun Pharmaceutical Industries's assets?
Raw Data
NSEI:SUNPHARMA PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in INR ₹170.60
NSEI:SUNPHARMA Share Price * NSEI (2019-04-16) in INR ₹462.55
India Pharmaceuticals Industry PB Ratio Median Figure of 133 Publicly-Listed Pharmaceuticals Companies 1.89x
India Market PB Ratio Median Figure of 3,625 Publicly-Listed Companies 1.12x
NSEI:SUNPHARMA PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NSEI:SUNPHARMA Share Price ÷ Book Value per Share (both in INR)

= 462.55 ÷ 170.60

2.71x

* Primary Listing of Sun Pharmaceutical Industries.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Sun Pharmaceutical Industries is overvalued based on assets compared to the IN Pharmaceuticals industry average.
X
Value checks
We assess Sun Pharmaceutical Industries's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Pharmaceuticals industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Pharmaceuticals industry average (and greater than 0)? (1 check)
  5. Sun Pharmaceutical Industries has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

SUNPHARMA Future Performance

 How is Sun Pharmaceutical Industries expected to perform in the next 1 to 3 years based on estimates from 24 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
31%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Sun Pharmaceutical Industries expected to grow at an attractive rate?
  • Sun Pharmaceutical Industries's earnings growth is expected to exceed the low risk savings rate of 7.6%.
Growth vs Market Checks
  • Sun Pharmaceutical Industries's earnings growth is expected to exceed the India market average.
  • Sun Pharmaceutical Industries's revenue growth is positive but not above the India market average.
Annual Growth Rates Comparison
Raw Data
NSEI:SUNPHARMA Future Growth Rates Data Sources
Data Point Source Value (per year)
NSEI:SUNPHARMA Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 24 Analysts 31%
NSEI:SUNPHARMA Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 24 Analysts 11.6%
India Pharmaceuticals Industry Earnings Growth Rate Market Cap Weighted Average 20.6%
India Pharmaceuticals Industry Revenue Growth Rate Market Cap Weighted Average 13.5%
India Market Earnings Growth Rate Market Cap Weighted Average 18.7%
India Market Revenue Growth Rate Market Cap Weighted Average 11.8%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NSEI:SUNPHARMA Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 24 Analyst Estimates (S&P Global) See Below
All numbers in INR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NSEI:SUNPHARMA Future Estimates Data
Date (Data in INR Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-03-31 369,931 66,557 60,078 22
2020-03-31 333,621 55,965 50,316 24
2019-03-31 295,404 49,571 32,300 23
NSEI:SUNPHARMA Past Financials Data
Date (Data in INR Millions) Revenue Cash Flow Net Income *
2018-12-31 288,052 34,379
2018-09-30 277,182 24,380
2018-06-30 275,048 35,690
2018-03-31 264,155 39,072 21,616
2017-12-31 263,811 20,763
2017-09-30 276,530 31,827
2017-06-30 295,310 45,057
2017-03-31 313,081 70,822 69,644
2016-12-31 319,185 73,270
2016-09-30 311,431 74,000
2016-06-30 297,512 61,937
2016-03-31 281,086 66,859 45,457

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Sun Pharmaceutical Industries's earnings are expected to grow significantly at over 20% yearly.
  • Sun Pharmaceutical Industries's revenue is expected to grow by 11.6% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NSEI:SUNPHARMA Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 24 Analyst Estimates (S&P Global) See Below

All data from Sun Pharmaceutical Industries Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NSEI:SUNPHARMA Future Estimates Data
Date (Data in INR Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-03-31 24.85 27.10 21.40 20.00
2020-03-31 20.88 22.70 18.60 22.00
2019-03-31 13.68 18.00 10.62 12.00
NSEI:SUNPHARMA Past Financials Data
Date (Data in INR Millions) EPS *
2018-12-31 14.33
2018-09-30 10.16
2018-06-30 14.86
2018-03-31 9.01
2017-12-31 8.73
2017-09-30 13.18
2017-06-30 18.82
2017-03-31 28.98
2016-12-31 30.50
2016-09-30 30.68
2016-06-30 25.81
2016-03-31 18.89

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Sun Pharmaceutical Industries is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Sun Pharmaceutical Industries's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the India market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the India market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Sun Pharmaceutical Industries has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

SUNPHARMA Past Performance

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

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Sun Pharmaceutical Industries's growth in the last year to its industry (Pharmaceuticals).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Sun Pharmaceutical Industries's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
  • Sun Pharmaceutical Industries's 1-year earnings growth exceeds its 5-year average (65.6% vs -5.7%)
  • Sun Pharmaceutical Industries's earnings growth has exceeded the IN Pharmaceuticals industry average in the past year (65.6% vs 16.4%).
Earnings and Revenue History
Sun Pharmaceutical Industries's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Sun Pharmaceutical Industries Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NSEI:SUNPHARMA Past Revenue, Cash Flow and Net Income Data
Date (Data in INR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 288,051.70 34,378.90 58,539.30
2018-09-30 277,182.10 24,380.40 57,315.80
2018-06-30 275,048.40 35,689.80 54,701.80
2018-03-31 264,155.40 21,615.50 54,814.30
2017-12-31 263,811.10 20,762.90 54,007.40
2017-09-30 276,529.90 31,827.20 52,432.10
2017-06-30 295,309.70 45,057.40 49,928.80
2017-03-31 313,081.40 69,643.70 50,284.70
2016-12-31 319,185.20 73,270.10 49,985.90
2016-09-30 311,430.50 74,000.40 49,212.30
2016-06-30 297,512.10 61,937.20 48,012.00
2016-03-31 281,086.10 45,457.10 49,076.30
2015-12-31 266,280.70 38,914.60 95,368.90
2015-09-30 264,669.60 28,701.90 94,999.60
2015-06-30 276,422.20 38,149.70 45,608.30
2015-03-31 273,920.10 45,393.80 46,483.20
2014-12-31 170,764.60 59,141.40 45,585.90
2014-09-30 170,835.10 60,201.60 45,035.90
2014-06-30 165,250.30 58,100.00 44,680.40
2014-03-31 160,803.60 31,414.70 44,040.40
2013-12-31 150,932.90 26,103.80 35,071.00
2013-09-30 136,587.10 19,606.00 33,778.30
2013-06-30 120,629.30 9,364.10 16,867.50
2013-03-31 112,998.60 29,895.90 30,506.00
2012-12-31 105,114.30 28,178.20 25,640.90
2012-09-30 98,111.70 26,048.10 24,654.40
2012-06-30 90,280.80 28,818.00 12,603.30

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Sun Pharmaceutical Industries has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Sun Pharmaceutical Industries used its assets less efficiently than the IN Pharmaceuticals industry average last year based on Return on Assets.
  • Sun Pharmaceutical Industries's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Sun Pharmaceutical Industries's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Pharmaceuticals industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Sun Pharmaceutical Industries has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

SUNPHARMA Health

 How is Sun Pharmaceutical Industries's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Sun Pharmaceutical Industries's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Sun Pharmaceutical Industries is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Sun Pharmaceutical Industries's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Sun Pharmaceutical Industries's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 3.2x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Sun Pharmaceutical Industries Company Filings, last reported 3 months ago.

NSEI:SUNPHARMA Past Debt and Equity Data
Date (Data in INR Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 454,302.70 107,184.30 149,907.20
2018-09-30 454,302.70 107,184.30 149,907.20
2018-06-30 419,847.20 110,895.10 144,995.50
2018-03-31 419,847.20 103,852.70 141,362.50
2017-12-31 409,361.60 114,226.00 153,518.10
2017-09-30 409,361.60 114,226.00 153,518.10
2017-06-30 404,305.30 80,910.00 155,975.70
2017-03-31 404,305.30 98,317.70 154,470.50
2016-12-31 403,971.70 82,954.30 141,734.50
2016-09-30 403,971.70 82,954.30 141,734.50
2016-06-30 354,901.40 83,381.00 147,045.30
2016-03-31 370,677.30 84,967.60 139,125.60
2015-12-31 315,024.50 70,377.50 141,453.60
2015-09-30 315,024.50 70,377.50 141,453.60
2015-06-30 293,582.00 75,963.40 131,154.70
2015-03-31 284,892.80 90,073.10 131,154.70
2014-12-31 243,507.40 3,139.20 80,066.80
2014-09-30 243,507.40 3,139.20 80,066.80
2014-06-30 204,461.30 25,637.20 95,886.10
2014-03-31 204,461.30 25,637.20 95,886.10
2013-12-31 184,504.30 27,041.90 85,982.40
2013-09-30 184,504.30 27,041.90 85,982.40
2013-06-30 157,798.20 1,982.10 53,639.30
2013-03-31 166,248.10 2,621.10 53,639.30
2012-12-31
2012-09-30
2012-06-30 133,278.00 2,649.90 49,911.00
  • Sun Pharmaceutical Industries's level of debt (23.6%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (14.6% vs 23.6% today).
  • Debt is well covered by operating cash flow (36.5%, greater than 20% of total debt).
  • Sun Pharmaceutical Industries earns more interest than it pays, coverage of interest payments is not a concern.
X
Financial health checks
We assess Sun Pharmaceutical Industries's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Sun Pharmaceutical Industries has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

SUNPHARMA Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0.43%
Current annual income from Sun Pharmaceutical Industries dividends. Estimated to be 0.66% next year.
If you bought ₹2,000 of Sun Pharmaceutical Industries shares you are expected to receive ₹9 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Sun Pharmaceutical Industries's pays a lower dividend yield than the bottom 25% of dividend payers in India (0.49%).
  • Sun Pharmaceutical Industries's dividend is below the markets top 25% of dividend payers in India (1.92%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NSEI:SUNPHARMA Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 24 Analyst Estimates (S&P Global) See Below
India Pharmaceuticals Industry Average Dividend Yield Market Cap Weighted Average of 69 Stocks 0.7%
India Market Average Dividend Yield Market Cap Weighted Average of 1399 Stocks 1.3%
India Minimum Threshold Dividend Yield 10th Percentile 0.3%
India Bottom 25% Dividend Yield 25th Percentile 0.5%
India Top 25% Dividend Yield 75th Percentile 1.9%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NSEI:SUNPHARMA Future Dividends Estimate Data
Date (Data in ₹) Dividend per Share (annual) Avg. No. Analysts
2021-03-31 3.15 22.00
2020-03-31 2.96 23.00
2019-03-31 2.57 23.00
NSEI:SUNPHARMA Past Annualized Dividends Data
Date (Data in ₹) Dividend per share (annual) Avg. Yield (%)
2018-09-26 2.000 0.423
2017-09-04 3.500 0.646
2016-08-18 1.000 0.158
2016-05-30 1.000 0.128
2015-10-07 3.000 0.368
2014-08-13 1.500 0.170
2014-08-12 1.500 0.189
2013-08-08 2.500 0.413
2012-08-10 2.125 0.530
2012-08-08 2.125 0.630
2011-05-30 1.750 0.658
2010-06-14 1.375 0.671
2010-05-24 1.375 0.829
2009-04-20 1.375 0.990

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Sun Pharmaceutical Industries's earnings are paid to the shareholders as a dividend.
  • Dividends paid are thoroughly covered by earnings (7.2x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be thoroughly covered by earnings (7.8x coverage).
X
Income/ dividend checks
We assess Sun Pharmaceutical Industries's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.3%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Sun Pharmaceutical Industries afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Sun Pharmaceutical Industries has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

SUNPHARMA Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Dilip Shanghvi
COMPENSATION ₹33,608,800
AGE 63
CEO Bio

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 1982 and serves as its Managing Director since May 29, 2012 and is its founding partner. As the promoter of SPIL, he has been actively involved in international pharmaceutical markets, business strategy, business development and research and development functions in it. Mr. Shanghvi served as the Chairman and Managing Director of Sun Pharmaceutical Industries, Inc. He has wide extensive industrial experience in the Pharmaceutical industry. He has been the Chairman of Taro Pharmaceutical Industries Ltd., since July 18, 2013. Mr. Shanghvi has been the Chairman of Sun Pharmaceutical Industries Inc. since 1997. Mr. Shanghvi served as the Chairman of the Board of Sun Pharmaceutical Industries Ltd until May 28, 2012. since 1999. He served as the Chairman of the Board of Taro Pharmaceutical Industries Ltd. from September 20, 2010 to April 18, 2012. He has been a Director of Sun Pharma Advanced Research Company Limited since March 1, 2006. He serves as a Director at Sun Speciality Chemicals Pvt. Ltd., Sun Resins & Polymers Pvt. Ltd., Sun Fastfin Services Pvt. Ltd., Sun Petrochemicals Private Limited, SPARC Bio-Research Private Limited, Sun Pharma Global Inc., British Virgin Island, Sun Pharma De Mexico SA DE CV, SPIL De Mexico SA DE CV and Shantilal Shanghvi Foundation. He serves as an Executive Director of Sun Pharmaceutical Industries Ltd. since March 01, 1993. He served as a Director of Taro Pharmaceutical Industries Ltd., until April 18, 2012. He also held Directorships in Alfa Infraprop Private Limited and Aditya Clean Power Ventures Private Limited. Mr. Shanghvi is a recipient of several awards as listed below: Lifetime Outstanding Achievement Award - IMA - 2018, Entrepreneur of the year Award - AIMA - 2017, Padma Shri – 2016 (Fourth Highest Civilian Award – Government of India), NDTV Business Leadership Award – Pharmaceutical – 2016, JRD Tata Corporate Leadership Award AIMA (All India Management Association) 2014, Economic Times Business Leader of the Year Award 2014, CNBC-TV18, Outstanding Business Leader of the Year 2014, Forbes Entrepreneur for the Year 2014, World Entrepreneur of the Year- Ernst and Young 2011, Indian of the Year (Business) CNN IBN 2011, Businessman of the Year- Business India 2011, Entrepreneur of the Year- Ernst and Young 2010, Entrepreneur of the Year- Economic Times 2008, CEO of the Year Business Standard 2008, First Generation Entrepreneur of the Year- CNBC TV 18 2007, Pharmaceutical Company IMC Juran Quality Medal 2007 and Entrepreneur of the Year (Healthcare and Life Sciences) Ernst and Young 2005. Mr. Shanghvi is graduate in commerce from Kolkata University.

CEO Compensation
  • Dilip's compensation has been consistent with company performance over the past year.
  • Dilip's remuneration is lower than average for companies of similar size in India.
Management Team Tenure

Average tenure and age of the Sun Pharmaceutical Industries management team in years:

2.2
Average Tenure
63
Average Age
  • The tenure for the Sun Pharmaceutical Industries management team is about average.
Management Team

Dilip Shanghvi

TITLE
MD & Executive Director
COMPENSATION
₹34M
AGE
63

C. Muralidharan

TITLE
Chief Financial Officer
COMPENSATION
₹29M
AGE
55
TENURE
1.8 yrs

Sailesh Desai

TITLE
Whole Time Director
COMPENSATION
₹14M
AGE
64

Sudhir Valia

TITLE
Whole Time Director
COMPENSATION
₹34M
AGE
62

Kal Subramanian

TITLE
CEO of India Business and Emerging Markets & Whole-Time Director
AGE
64
TENURE
2.2 yrs

Sunil Ajmera

TITLE
Company Secretary
COMPENSATION
₹13M
TENURE
8 yrs

Arun Sawhney

TITLE
President
AGE
63

Govind Jaju

TITLE
President and Global Head of Technical Operations

Indrajit Banerjee

TITLE
President
AGE
62

Ashok Bhuta

TITLE
Senior General Manager - Secretarial & Compliance Officer
Board of Directors Tenure

Average tenure and age of the Sun Pharmaceutical Industries board of directors in years:

6
Average Tenure
63.5
Average Age
  • The tenure for the Sun Pharmaceutical Industries board of directors is about average.
Board of Directors

Israel Makov

TITLE
Non-Executive Director & Chairman
COMPENSATION
₹900K
AGE
79
TENURE
6.9 yrs

Dilip Shanghvi

TITLE
MD & Executive Director
COMPENSATION
₹34M
AGE
63
TENURE
26.1 yrs

Sailesh Desai

TITLE
Whole Time Director
COMPENSATION
₹14M
AGE
64
TENURE
20.1 yrs

Sudhir Valia

TITLE
Whole Time Director
COMPENSATION
₹34M
AGE
62
TENURE
14.2 yrs

Kal Subramanian

TITLE
CEO of India Business and Emerging Markets & Whole-Time Director
AGE
64
TENURE
2.2 yrs

Rekha Sethi

TITLE
Non-Executive Independent Director
COMPENSATION
₹1M
AGE
55
TENURE
5.2 yrs

Vivek Sehgal

TITLE
Additional Independent Director
COMPENSATION
₹300K
AGE
62
TENURE
1.4 yrs

Gautam Doshi

TITLE
Non-Executive Independent Director
AGE
65
TENURE
0.9 yrs
Who owns this company?
Recent Insider Trading
  • Sun Pharmaceutical Industries insiders have sold more shares than they have bought in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (₹) Value (₹)
10. Apr 19 Sell Pratham Investments Company 01. Apr 19 01. Apr 19 -50,000 ₹482.26 ₹-24,113,153
10. Apr 19 Sell Jayant Sanghvi Individual 02. Apr 19 02. Apr 19 -25,000 ₹479.02 ₹-11,975,523
01. Apr 19 Sell Pratham Investments Company 20. Mar 19 29. Mar 19 -190,227 ₹479.80 ₹-90,828,835
20. Mar 19 Sell Pratham Investments Company 14. Mar 19 19. Mar 19 -362,119 ₹472.34 ₹-152,461,069
20. Mar 19 Sell Jayant Sanghvi Individual 14. Mar 19 15. Mar 19 -377,881 ₹464.83 ₹-175,261,891
14. Mar 19 Sell Jayant Sanghvi Individual 11. Mar 19 13. Mar 19 -500,000 ₹470.91 ₹-232,113,730
23. Jan 19 Buy Rakesh Mehta Individual 18. Jan 19 18. Jan 19 6,000 ₹379.51 ₹2,277,060
14. Dec 18 Sell Rita Desai Individual 13. Dec 18 13. Dec 18 -38,200 ₹425.25 ₹-16,244,548
07. Dec 18 Sell Rajinder Jalali Individual 26. Nov 18 26. Nov 18 -7,772 ₹510.00 ₹-3,963,720
20. Nov 18 Sell Nayna Daptardar Individual 12. Sep 18 12. Sep 18 -3,000 ₹619.78 ₹-1,859,341
20. Nov 18 Buy Nayna Daptardar Individual 14. Nov 18 14. Nov 18 3,000 ₹525.17 ₹1,575,504
04. Dec 18 Sell Nayna Daptardar Individual 30. Nov 18 30. Nov 18 -5,500 ₹491.75 ₹-2,704,607
04. Dec 18 Buy Nayna Daptardar Individual 27. Nov 18 27. Nov 18 3,000 ₹486.02 ₹1,458,060
26. Oct 18 Sell Rita Desai Individual 23. Oct 18 23. Oct 18 -15,000 ₹574.65 ₹-8,619,749
21. Sep 18 Sell Jayant Sanghvi Individual 12. Sep 18 18. Sep 18 -531,097 ₹670.26 ₹-352,309,178
12. Sep 18 Sell Jayant Sanghvi Individual 05. Sep 18 11. Sep 18 -197,632 ₹674.13 ₹-130,960,725
12. Sep 18 Sell Jayant Sanghvi Individual 03. Sep 18 11. Sep 18 -622,632 ₹680.27 ₹-418,756,783
10. Sep 18 Sell Jitendra Valia Individual 07. Sep 18 07. Sep 18 -3,500 ₹665.87 ₹-2,330,545
06. Sep 18 Sell Jitendra Valia Individual 05. Sep 18 05. Sep 18 -3,500 ₹669.29 ₹-2,342,515
04. Sep 18 Sell Jitendra Valia Individual 03. Sep 18 03. Sep 18 -1,500 ₹669.49 ₹-1,004,235
04. Sep 18 Sell Pratham Investments Company 27. Aug 18 31. Aug 18 -100,100 ₹623.11 ₹-62,373,308
04. Sep 18 Sell Jayant Sanghvi Individual 29. Aug 18 31. Aug 18 -268,500 ₹654.94 ₹-173,155,790
03. Sep 18 Sell Jitendra Valia Individual 31. Aug 18 31. Aug 18 -8,500 ₹653.28 ₹-5,552,880
31. Aug 18 Sell Jitendra Valia Individual 30. Aug 18 30. Aug 18 -10,000 ₹637.09 ₹-6,370,900
28. Aug 18 Sell Jitendra Valia Individual 23. Aug 18 23. Aug 18 -100 ₹644.90 ₹-64,490
28. Aug 18 Sell Pratham Investments Company 20. Aug 18 24. Aug 18 -1,095,200 ₹641.45 ₹-691,094,049
23. Aug 18 Sell Jitendra Valia Individual 21. Aug 18 21. Aug 18 -6,000 ₹635.92 ₹-3,815,520
06. Aug 18 Sell Rita Desai Individual 01. Aug 18 01. Aug 18 -6,000 ₹571.61 ₹-3,429,660
04. Aug 18 Sell Pratham Investments Company 30. Jul 18 02. Aug 18 -1,000,000 ₹580.40 ₹-567,085,802
01. Aug 18 Sell Rita Desai Individual 26. Jul 18 26. Jul 18 -5,000 ₹559.84 ₹-2,799,200
30. Jul 18 Sell Pratham Investments Company 26. Jul 18 27. Jul 18 -302,378 ₹557.05 ₹-168,167,690
26. Jul 18 Sell Pratham Investments Company 23. Jul 18 25. Jul 18 -225,000 ₹561.72 ₹-125,989,995
28. Jun 18 Sell Pratham Investments Company 25. Jun 18 25. Jun 18 -10,000 ₹571.80 ₹-5,718,000
25. Jun 18 Sell Pratham Investments Company 18. Jun 18 18. Jun 18 -10,000 ₹576.75 ₹-5,767,499
X
Management checks
We assess Sun Pharmaceutical Industries's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Sun Pharmaceutical Industries has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

SUNPHARMA News

Simply Wall St News

Is Sun Pharmaceutical Industries Limited's (NSE:SUNPHARMA) 9.6% ROE Strong Compared To Its Industry?

To keep the lesson grounded in practicality, we'll use ROE to better understand Sun Pharmaceutical Industries Limited (NSE:SUNPHARMA). … One way to conceptualize this, is that for each ₹1 of shareholders' equity it has, the company made ₹0.096 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Who Are The Major Shareholders In Sun Pharmaceutical Industries Limited (NSE:SUNPHARMA)?

In this analysis, my focus will be on developing a perspective on Sun Pharmaceutical Industries Limited’s (NSE:SUNPHARMA) latest ownership structure, a less discussed, but important factor. … The impact of a company's ownership structure affects both its short- and long-term performance. … The effect of an active institutional investor with a similar ownership as a passive pension-fund can be vastly different on a company's corporate governance and accountability to shareholders.

Simply Wall St -

Is Sun Pharmaceutical Industries Limited (NSE:SUNPHARMA) Attractive At Its Current PE Ratio?

While this makes SUNPHARMA appear like a stock to avoid or sell if you own it, you might change your mind after I explain the assumptions behind the P/E ratio. … I will explain what the P/E ratio is as well as what you should look out for when using it … What you need to know about the P/E ratio

Simply Wall St -

Why Are Insiders Bearish About Sun Pharmaceutical Industries Limited's (NSE:SUNPHARMA) Stock?

Sun Pharmaceutical Industries Limited, a generic pharmaceutical company, manufactures and sells pharmaceutical formulations and active pharmaceutical ingredients (APIs) in India and internationally. … Sun Pharmaceutical Industries is one of India’s. … some insider selling over the past three months, with insiders divesting from.

Simply Wall St -

How Did Sun Pharmaceutical Industries Limited's (NSE:SUNPHARMA) 6.21% ROE Fare Against The Industry?

and want to begin learning the link between Sun Pharmaceutical Industries Limited (NSE:SUNPHARMA)’s return fundamentals and stock market performance. … Sun Pharmaceutical Industries Limited (NSE:SUNPHARMA) delivered a less impressive 6.21% ROE over the past year, compared to the 10.69% return generated by its industry. … Knowing these components can change your views on SUNPHARMA's below-average returns

Simply Wall St -

What Are Analysts Saying About Sun Pharmaceutical Industries Limited's (NSE:SUNPHARMA) Long Term Outlook?

Sun Pharmaceutical Industries Limited's (NSE:SUNPHARMA) most recent earnings update in March 2018a … headwind with earnings

Simply Wall St -

Intrinsic Calculation For Sun Pharmaceutical Industries Limited (NSE:SUNPHARMA) Shows Investors Are Overpaying

Today I will be providing a simple run through of a valuation method used to estimate the attractiveness of Sun Pharmaceutical Industries Limited (NSE:SUNPHARMA) as an investment opportunity. … by taking the expected future cash flows and discounting them to their present value. … If you are reading this and its not June 2018 then I highly recommend you check out the latest calculation for Sun Pharmaceutical Industries by following the link below.

Simply Wall St -

What Should We Expect From Sun Pharmaceutical Industries Limited's (NSE:SUNPHARMA) Earnings In The Next Couple Of Years?

Investors may find it useful to understand how market analysts perceive Sun Pharmaceutical Industries's earnings growth trajectory over the next couple of years and whether the future looks brighter. … View our latest analysis for Sun Pharmaceutical Industries Market analysts' consensus outlook for this coming year seems positive, with earnings climbing by a significant 97.41%. … This means, we can expect Sun Pharmaceutical Industries will grow its earnings by 36.19% every year for the next couple of years.

Simply Wall St -

What Kind Of Risk Should You Expect For Sun Pharmaceutical Industries Limited (NSE:SUNPHARMA)?

A popular measure of market risk for a stock is its beta, and the market as a whole represents a beta value of one. … SUNPHARMA's beta implies it may be a stock that investors with high-beta portfolios might find relevant if they wanted to reduce their exposure to market risk, especially during times of downturns. … Thus, we can expect SUNPHARMA to be more stable in the face of market movements, relative to its peers of similar size but with a higher portion of fixed assets on their books.

Simply Wall St -

What Investors Should Know About Sun Pharmaceutical Industries Limited's (NSE:SUNPHARMA) Financial Strength

On top of this, SUNPHARMA has produced cash from operations of ₹70.82B over the same time period, leading to an operating cash to total debt ratio of 72.03%, indicating that SUNPHARMA’s current level of operating cash is high enough to cover debt. … SUNPHARMA’s level of debt is appropriate relative to its total equity, at 27.90%. … Next Steps: SUNPHARMA’s high cash coverage and appropriate debt levels indicate its ability to utilise its borrowings efficiently in order to generate ample cash flow.

Simply Wall St -

SUNPHARMA Company Info

Description

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. The company offers formulations in various therapeutic areas, such as cardiology, neuro-psychiatry, gastroenterology, anti-infectives, diabetology, pain/analgesics, dermatology, gynaecology, vitamins/minerals/nutrients, respiratory, ophthalmology, orthopaedic, and nephrology. It also provides APIs for anti-cancers, peptides, steroids, sex hormones, and controlled substances, as well as over-the-counter products. Sun Pharmaceutical Industries Limited was founded in 1983 and is based in Mumbai, India.

Details
Name: Sun Pharmaceutical Industries Limited
SUNPHARMA
Exchange: NSEI
Founded: 1983
₹1,109,812,390,373
2,399,334,970
Website: http://www.sunpharma.com
Address: Sun Pharmaceutical Industries Limited
Sun House,
Plot No. 201 B/1,
Mumbai,
Maharashtra, 400063,
India
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NSEI SUNPHARMA Equity Shares National Stock Exchange of India IN INR 09. Feb 1995
BSE 524715 Equity Shares Mumbai Stock Exchange IN INR 09. Feb 1995
Number of employees
Current staff
Staff numbers
32,000
Sun Pharmaceutical Industries employees.
Industry
Pharmaceuticals
Pharmaceuticals & Biotech
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/17 12:54
End of day share price update: 2019/04/16 00:00
Last estimates confirmation: 2019/04/16
Last earnings filing: 2019/02/12
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/03/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.