SUNPHARMA.NS
Sun Pharmaceutical Industries Ltd. (SUNPHARMA.NS) is a prominent player in the pharmaceutical industry, boasting a significant market capitalization of ₹4,458.915 billion. This marks its stature as one of the largest in the sector, underscoring investor confidence in its robust market position. The stock's Price-to-Earnings (P/E) ratio of 40.36 suggests that investors are willing to pay a premium for its earnings, indicating high growth expectations but also highlighting a relatively expensive stock valuation.
The company's Return on Equity (ROE) at 16.77% reflects efficient utilization of shareholder funds to generate profits. However, investors should note the debt-to-equity ratio of 3.707, which indicates a considerable reliance on debt finance. This could pose risks if not managed properly, potentially affecting long-term profitability.
Sun Pharma's current ratio of 2.672 suggests a strong ability to cover short-term liabilities, signifying sound financial stability. The operating margin of 23.96% is indicative of healthy profitability from its core operations, while the EBITDA margin of 27.435% highlights a solid operating profit structure, offering a cushion against market adversities.
The company's free cash flow of ₹77.99 billion allows Sun Pharma to reinvest in business operations and fund future growth opportunities comfortably. A promising earning growth rate of 28.3% combined with a revenue growth of 9% demonstrates solid expansion in earnings and revenue, signaling positive growth momentum.
Institutional investors hold 26.715% of Sun Pharma's shares, a sign of external confidence from large investors in the company's future prospects. However, a price-to-book ratio of 6.437 suggests that the stock might be overvalued compared to its book value, which new investors should carefully consider.
Overall, Sun Pharmaceutical Industries Ltd. presents a blend of strengths and potential risks. The company's steadfast market position and growth potential make it an intriguing option for investors, while careful consideration of its debt levels and stock valuation is imperative to make a balanced investment decision.
Last Updated: January 14, 2025
| Metric | Value |
|---|---|
| Market Cap | 4248.85 B |
| P/E Ratio | 38.17 |
| ROE | 16.77 % |
| Debt to Equity | 3.707 |
| Operating Margin | 23.96 % |
| Free Cash Flow | 77.99 B |
| Institutional Holdings | 26.58 % |
| Revenue Growth | 9.00 % |
Sun Pharma's Competitive Landscape Across Various Segments
- Generic Pharmaceuticals: Competes with a range of domestic and international generic drug manufacturers.
- Specialty Pharmaceuticals: Focus on complex generics and specialty drugs targeting niche markets.
- Consumer Healthcare: Over-the-counter (OTC) medications and wellness products.
For investors, Sun Pharma remains a prominent player in the pharmaceutical industry, leveraging its strength in generic and specialty drugs, as well as strategic acquisitions to expand its market presence. Despite facing challenges such as regulatory scrutiny and intense competition, Sun Pharma's robust R&D pipeline and global distribution might provide a buffer against market pressures. However, potential investors should consider the volatility in regulatory environments and market dynamics in decision-making processes.
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