Sun Pharma has declared excellent results for the year ended March 2000. While the turnover has increased by 35% and the net profits have grown 53%. Even if one were to take into account the turnover accruing in the current year of Rs 291 m due to the amalgamation of Gujarat Lyka, still the turnover has grown by 26% in a year when the domestic formulations have grown only by 9.2%.
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The company’s strategy of focussing on therapeutic areas such as oncology (anti–cancer), cardiology, gastro–enteritis has paid of immensely as evidenced by the growth in the topline and the improvement of operating margins. The company has written off the entire R & D expenses (Rs 15 m) incurred in the current year apart from a one time write off of Rs 40.7 m.
The stock quotes at Rs 358 currently at an earnings multiple of 18.31 times. The earnings have been taken on a fully diluted equity after a 2:1 bonus (2 shares for every one held).
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