Sun Pharmaceutical Industries, incorporated in 1993, is a Large Cap company with a market cap of Rs 397161.92 crore, operating in the Pharmaceuticals sector.
Sun Pharma’s key products/revenue segments include Pharmaceuticals and Other Operating Revenue for the year ending 31-Mar-2024.
Financials
For the quarter ended 31-12-2024, the company has reported a Consolidated Total Income of Rs 14141.08 crore, up 3.63% from last quarter Total Income of Rs 13645.39 crore and up 11.96% from last year same quarter Total Income of Rs 12630.90 crore. The company has reported net profit after tax of Rs 2917.54 crore in the latest quarter.
The company’s top management includes Mr.Dilip S Shanghvi, Mr.Aalok D Shanghvi, Mr.Sudhir V Valia, Dr.Pawan Goenka, Mr.Rama Bijapurkar, Mr.Gautam Doshi, Mr.Sanjay Asher, Mr.Rolf Hoffmann. Company has S R B C & Co. LLP as its auditors. As on 31-12-2024, the company has a total of 240 crore shares outstanding.
Investment Rationale
Sun Pharma has been on an acquisition spree to strengthen its specialty portfolio. In Mar’23, it acquired Concert Pharma to get access to deuruxolitinib (Leqselvi) and this deal would help it develop in-roads into the skin-related cancer segment. ICICI Securities believes, Sun’s specialty portfolio will likely witness a significant boost in FY27E/FY28E from the launches of Leqselvi and now Unloxcyt (subject to Checkpoint’s shareholder approval). Sun is also aiming to launch its anti-obesity and type 2 diabetes GLP-1 drug, utreglutide (GL0034) in the next four to five years. Unloxcyt is likely to complementwell with Sun’s existing skin cancer drugs Odomzo and Nidlegy and Sun may be able to leverage on its existing marketing field force for these drugs. R&D cost may jump a bit for development/trials of the four investigational drugs of Checkpoint.The stock has corrected ~10% in the last two months and currently trades at 28x FY26E and 26.4x FY27E earnings, and EV/EBITDA multiples of 20.9x FY26E and 19.3x FY27E. The brokerage has upgrade its rating on the stock to BUY (earlier Hold) with a higher target price of Rs 1,895, based on 31x FY27E EPS (32x on FY26E EPS earlier). Key downside risks are delay in approvals of key specialty assets; increase in R&D spending; higher-than-expected pricing pressures in US; and regulatory hurdles.
Promoter/FII Holdings
Promoters held 54.48 per cent stake in the company as of 31-Dec-2024, while FIIs owned 18.04 per cent, DIIs 18.35 per cent.
(Disclaimer: Recommendations given in this section or any reports attached herein are authored by an external party. Views expressed are that of the respective authors/entities. These do not represent the views of Economic Times (ET). ET does not guarantee, vouch for, endorse any of its contents and hereby disclaims all warranties, express or implied, relating to the same. Please consult your financial adviser and seek independent advice.
