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India Equity Research Reports, IPO and Stock News
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Fundamental Reasons:-
Sun Pharma is an India based global pharmaceutical major having its dominance in the field of high end specialty
arena such as psychiatry, neurology, cardiology etc. Company was incorporated in the year 1983 and since then,
company has penetrated deep into the various vital aspects of pharma industry . Growing in leaps & bounds, from
a very humble beginning, Sun Pharma becomes the largest pharma company in India by market valuation.
Company is having a very sounding presence in all aspects of drug manufacturing and a player to reckon with
specialized manufacturing capacities in the niche segments of API, formulation and R&D business. Company is
having its own brands in the 41 markets across the globe. In last decade, Sun Pharma has adopted a strategy of inorganic
expansion and gradually company has acquired US based Caraco Pharma Labs, Taro of Israel, Alkaloida
Chemical Company Exclusive Group Ltd, Chattem Chemicals etc to strengthen its presence in the operative verticals.
Beside having its special focus on the emerging market, Sun Pharma is having very deep penetration in the US, its
largest market. Company has built a strong pipeline of generics, directly and through our subsidiaries Caraco and
Sun Pharmaceutical Inc. Taro adds strong dermatology range to this portfolio.
Sun Pharma has reported its Q-3;2011 result, in line with market expectation. Mainly on account of the good
performance by its main vertical, Sun Pharma has reported an optimally good profit but adverse currency
movement, USFDA problem in CARACO case and higher inventory cost has eaten its profit. Though Company has
reported a surge in the topline and bottom-line, yet on OPM front it felt a punch. During the said Quarter, total
revenue of the company rose to Rs.760.57 Crore as compared to Rs.702.44 Crore in DEC’09, showing a YoY growth
of 8.28%, while total profit during the said period recorded at Rs 342.67 Crore against a figure of Rs 318.04 Crore on
Y/Y basis a rise of 7.74%. During the said period , Earning per share of the company also has improved
correspondingly and recorded to Rs 3.31 from a average value of Rs 3.07 as on 31st DEC; 2009. Despite a good
performance on financial front, OPM in the said quarters was reported at 42.54% against 45.32% on Y/Y basis.
Sun Pharma is expected to garner good revenue and profit in coming quarters because of following facts: - 1. Sun
Pharmaceutical Industries Ltd and MSD a unit of Merck Inc have entered into a partnership to market diabetes
drugs Sitagliptin and Sitaglipitin plus Metformin in the Indian market. 2. Successful revoking of the USFDA ban
from Caraco , will boost its generic business in US . 3. Acquisition of TARO will give access to Canadian & Israeli
markets in addition to a set base in US fro good growth .4. On account of new Healthcare policy, a large number of
people will be given medical benefits. Sun Pahrma is better placed among its Indian peers to tap this opportunity
mainly on account of its deep penetration and specialized products. 5. Deep international penetration, Company is
having own subsidiaries in African, European, Asian and American countries, which may provide business
opportunity for the company.6. Domestic pharma business in India may continue to grow in line with market.7. On
account of its subsidiaries “Chattem Chemicals” and ’ICN Hungary’, Sun pharma can formulate the drugs having
quantity of controlled substance like narcotics. This may help the company in exploiting a large sedative market
segment across the globe. All these indicate about the possible steps, instrumental to augment the value of
shareholders.
Healthcare sector is one of the vital sector for our economy. The healthcare sector is expected to reach US$ 280
billion by 2020. It is one of the fastest growing knowledge-based sectors in India and is expected to play a key role in
shaping India's rapidly developing economy. This growth may continue in near future and as a result of this, Indian
pharma industry may log in good numbers in coming quarters. Industry is growing at a compound annual growth
rate (CAGR) of 11.7 per cent during 2005–2015 and establish its presence among the world’s leading 10 markets.
However, owing to recovery issues in US and Euro Zone economies and in case of any abrupt withdrawal by FIIs, Sun
Parma may witness some temporary corrections before moving up.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Fundamental Reasons:-
Sun Pharma is an India based global pharmaceutical major having its dominance in the field of high end specialty
arena such as psychiatry, neurology, cardiology etc. Company was incorporated in the year 1983 and since then,
company has penetrated deep into the various vital aspects of pharma industry . Growing in leaps & bounds, from
a very humble beginning, Sun Pharma becomes the largest pharma company in India by market valuation.
Company is having a very sounding presence in all aspects of drug manufacturing and a player to reckon with
specialized manufacturing capacities in the niche segments of API, formulation and R&D business. Company is
having its own brands in the 41 markets across the globe. In last decade, Sun Pharma has adopted a strategy of inorganic
expansion and gradually company has acquired US based Caraco Pharma Labs, Taro of Israel, Alkaloida
Chemical Company Exclusive Group Ltd, Chattem Chemicals etc to strengthen its presence in the operative verticals.
Beside having its special focus on the emerging market, Sun Pharma is having very deep penetration in the US, its
largest market. Company has built a strong pipeline of generics, directly and through our subsidiaries Caraco and
Sun Pharmaceutical Inc. Taro adds strong dermatology range to this portfolio.
Sun Pharma has reported its Q-3;2011 result, in line with market expectation. Mainly on account of the good
performance by its main vertical, Sun Pharma has reported an optimally good profit but adverse currency
movement, USFDA problem in CARACO case and higher inventory cost has eaten its profit. Though Company has
reported a surge in the topline and bottom-line, yet on OPM front it felt a punch. During the said Quarter, total
revenue of the company rose to Rs.760.57 Crore as compared to Rs.702.44 Crore in DEC’09, showing a YoY growth
of 8.28%, while total profit during the said period recorded at Rs 342.67 Crore against a figure of Rs 318.04 Crore on
Y/Y basis a rise of 7.74%. During the said period , Earning per share of the company also has improved
correspondingly and recorded to Rs 3.31 from a average value of Rs 3.07 as on 31st DEC; 2009. Despite a good
performance on financial front, OPM in the said quarters was reported at 42.54% against 45.32% on Y/Y basis.
Sun Pharma is expected to garner good revenue and profit in coming quarters because of following facts: - 1. Sun
Pharmaceutical Industries Ltd and MSD a unit of Merck Inc have entered into a partnership to market diabetes
drugs Sitagliptin and Sitaglipitin plus Metformin in the Indian market. 2. Successful revoking of the USFDA ban
from Caraco , will boost its generic business in US . 3. Acquisition of TARO will give access to Canadian & Israeli
markets in addition to a set base in US fro good growth .4. On account of new Healthcare policy, a large number of
people will be given medical benefits. Sun Pahrma is better placed among its Indian peers to tap this opportunity
mainly on account of its deep penetration and specialized products. 5. Deep international penetration, Company is
having own subsidiaries in African, European, Asian and American countries, which may provide business
opportunity for the company.6. Domestic pharma business in India may continue to grow in line with market.7. On
account of its subsidiaries “Chattem Chemicals” and ’ICN Hungary’, Sun pharma can formulate the drugs having
quantity of controlled substance like narcotics. This may help the company in exploiting a large sedative market
segment across the globe. All these indicate about the possible steps, instrumental to augment the value of
shareholders.
Healthcare sector is one of the vital sector for our economy. The healthcare sector is expected to reach US$ 280
billion by 2020. It is one of the fastest growing knowledge-based sectors in India and is expected to play a key role in
shaping India's rapidly developing economy. This growth may continue in near future and as a result of this, Indian
pharma industry may log in good numbers in coming quarters. Industry is growing at a compound annual growth
rate (CAGR) of 11.7 per cent during 2005–2015 and establish its presence among the world’s leading 10 markets.
However, owing to recovery issues in US and Euro Zone economies and in case of any abrupt withdrawal by FIIs, Sun
Parma may witness some temporary corrections before moving up.
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