26 May 2023 10:30 AM GMT

Company Review

Top Indian Companies: Sun Pharmaceutical Industries

Myfin Desk

Top Indian Companies: Sun Pharmaceutical Industries


It is largest pharma company in India and the fourth largest specialty generic pharmaceutical company in the world.

Sun Pharmaceutical Industries Limited (Sun Pharma) is an Indian multinational pharmaceutical company headquartered in Mumbai, Maharashtra, that manufactures and sells pharmaceutical formulations and active pharmaceutical ingredients (APIs) in more than 100 countries across the globe.

It is largest pharma company in India and the fourth largest specialty generic pharmaceutical company in the world, with a total revenue of over US$4.5 billion as of June 2021.

Sun Pharmaceuticals was founded by Dilip Shanghvi in 1983 in Vapi, Gujarat, with five products to treat psychiatry ailments.

Manufacturing is across 44 global locations in India, the US, Asia, Africa, Australia and Europe.

In 2014, Sun Pharma acquired Ranbaxy in a US$4 billion landmark transaction to create the world's 5th largest specialty generic pharmaceutical company. Sun Pharma is a Nifty 50 company with a weightage of 1.19%

Shareholding Pattern

The Shareholding Pattern page of Sun Pharmaceutical Industries Ltd. presents the Promoter's holding, FII's holding, DII's Holding, and Share holding by general public etc.

Holder's Name No of Shares % Share Holding

No Of Shares 2399334970 100%

Promoters 1307134535 54.48%

Foreign Institutions 311795611 13%

Banks Mutual Funds 283015073 11.8%

Central Govt 6430 0%

Others 116280080 4.85%

General Public 160321568 6.68%

Financial Institutions 220781673 9.2%

FY2023 Q4 and Full Year Results

Sun Pharma said its consolidated net profit stood at Rs 1,984 crore for the fourth quarter ended March 31, 2023, aided by robust sales across markets.

The Mumbai-based company had reported a net loss of Rs 2,277 crore in the January-March quarter of last year.

Excluding the exceptional items, adjusted net profit for the fourth quarter last fiscal stood at Rs 2,156 crore, up 36 per cent, over the fourth quarter of 2021-22 fiscal, Sun Pharma said in a regulatory filing.

Total revenue from operations rose to Rs 10,931 crore for the March quarter as compared with Rs 9,447 crore in the year-ago period.

For the year ended March 31, 2023, the drug major reported a net profit of Rs 8,474 crore as against Rs 3,273 crore in FY22.

Excluding the exceptional items, adjusted net profit for FY23 stood at Rs 8,645 crore, up 13 per cent over 2021-22 fiscal. Total revenue from operations increased to Rs 43,886 crore as against Rs 38,654 crore in FY22.

The company's board has recommended a final dividend of Rs 4 per share for the financial year 2022-23.

"Several of our businesses, including specialty, India and emerging markets have continued to progress well," Sun Pharma Managing Director Dilip Shanghvi noted.

The specialty business remains on a growth path and the company is committed to continue scaling it up, he added.

"Acquisition of Concert helps further strengthen our portfolio in dermatology. I believe deuruxolitinib can become a leading product to address highly unmet need in alopecia areata patients," Shanghvi said.

Shares of the company were trading 2.75 per cent up at Rs 970.65 apiece on the BSE.

Brokerage Outlook

Sun Pharma’s Q3 core earnings were 3% better than PC estimates mainly driven by outperformance in key markets of US and India.

Going ahead, Brokerage, Phillip Capital, expect SUNP to accelerates its value growth momentum on the back of –

A) visible profitable growth in specialty portfolio (likely ramp up in Winlevi from Q4),

B) robust earnings from gRevlimid starting FY23,

C) bottoming out in Taro and

D) sustained strong performance in domestic formulations.

Factoring superior performance in its key markets of US/India and lower taxes in YTD, we raised FY22/FY23 earnings by +9%/+2%. Rolling forward Philip Capital’s valuations to FY24, we value SUNP at Rs 1,050 i.e. 25x FY24E EPS (Rs 1,000 at 26x Sep’23EPS earlier) and maintain BUY rating.

ESG and Sustainability

At Sun Pharma fully committed to achieving excellence in Environment, Health & Safety (EHS) and had installed facilities for recycling of the treated effluent has helped achieve the status of Zero Liquid Discharge (ZLD).

Its plant and processes are continuously upgraded to improve hygiene and health standards.