Sun Pharma: Outpacing continues - Views on News from Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

Sun Pharma: Outpacing continues

Jul 30, 2001

Sun Pharma has reported a net profit growth of 34% in 1QFY02 mainly on the back of better product mix. Operating margins have inched up further to 27.9%, increasing by 80 basis points. Operating margins of the company continue to be the best in the industry, due to strong brand presence in high margin cardiovascular segment.

(Rs m) 1QFY01 1QFY02 Change FY01
Sales 1,327 1,672 26.0% 6,132
Other Income 5 10 98.0% 67
Expenditure 967 1,205 24.6% 4,625
Operating Profit (EBDIT) 360 467 29.9% 1,507
Operating Profit Margin (%) 27.1% 27.9%   24.6%
Interest (3) (8.7) 163.6% (21)
Depreciation 38 41 10.1% 152
Profit before Tax 330 444.1 34.5% 1,444
Other Adjustments   -   -
Tax 20 29 46.9% 95
Profit after Tax/(Loss) 311 415 33.7% 1,349
Net profit margin (%) 23.4% 24.8%   22.0%
No. of Shares (eoy) (m) 46.8 46.8   46.8
Diluted Earnings per share* 26.5 35.5   28.9
P/E (at current price)   17.1   21.0
*(annualised)        

Domestic branded formulations grew by 26%, which has come as a positive surprise. In domestic branded business, the company launched 11 products in the quarter across various high margin therapeutic segments such as cardiovascular, diabetes, opthalmology and arthritis. Exports grew by 90%, helped largely by the company's merger with Sun Pharma Exports. However, excluding the merger effect export growth was sluggish. Caraco Pharma, the US affiliate of the company has posted a loss of US$ 1.7 m for the quarter ended in March'01. The mounting losses of Caraco is a major concern for Sun Pharma. Caraco Pharma has recently received 3 FDA approvals, which may help the company to come out of the red.

At Rs 528 the company trades on a multiple of 17x annualised earnings for 1QFY02. The low valuations accorded to the stock compared to its peers in the sector appear mainly on account of Caraco losses, which remain the biggest trigger for the stock.


Equitymaster requests your view! Post a comment on "Sun Pharma: Outpacing continues". Click here!

  

More Views on News

SUN PHARMA Announces Quarterly Results (4QFY20); Net Profit Down 31.6% (Quarterly Result Update)

May 28, 2020 | Updated on May 28, 2020

For the quarter ended March 2020, SUN PHARMA has posted a net profit of Rs 5 bn (down 31.6% YoY). Sales on the other hand came in at Rs 82 bn (up 14.3% YoY). Read on for a complete analysis of SUN PHARMA's quarterly results.

SUN PHARMA Announces Quarterly Results (3QFY20); Net Profit Down 29.8% (Quarterly Result Update)

Feb 7, 2020 | Updated on Feb 7, 2020

For the quarter ended December 2019, SUN PHARMA has posted a net profit of Rs 10 bn (down 29.8% YoY). Sales on the other hand came in at Rs 82 bn (up 5.4% YoY). Read on for a complete analysis of SUN PHARMA's quarterly results.

SUN PHARMA 2018-19 Annual Report Analysis (Annual Result Update)

Aug 6, 2019 | Updated on Aug 6, 2019

Here's an analysis of the annual report of SUN PHARMA for 2018-19. It includes a full income statement, balance sheet and cash flow analysis of SUN PHARMA. Also includes updates on the valuation of SUN PHARMA.

SUN PHARMA 2017-18 Annual Report Analysis (Annual Result Update)

Dec 20, 2018 | Updated on Dec 20, 2018

Here's an analysis of the annual report of SUN PHARMA for 2017-18. It includes a full income statement, balance sheet and cash flow analysis of SUN PHARMA. Also includes updates on the valuation of SUN PHARMA.

More Views on News

Most Popular

How the 8-Year Cycle Can Help Identify Multibaggers (Fast Profits Daily)

Sep 11, 2020

This is how you can apply the greed and fear cycle in the market to pick stocks.

I Recommended this Stock over Page Industries because it's Relevant to Doubling Your Income (Profit Hunter)

Sep 7, 2020

Things are not often what they seem in the market and how you can take advantage of this.

The NASDAQ Whale Could Harm Your Portfolio (Fast Profits Daily)

Sep 7, 2020

The discovery of Softbank pushing up prices on the NASDAQ will cause volatility in the market. Stay alert!

This Could Be the Best September for Auto Stocks (Profit Hunter)

Sep 11, 2020

Here's why I think this month could be a great for auto stocks.

More

Covid-19 Proof
Multibagger Stocks

Covid19 Proof Multibaggers
Get this special report, authored by Equitymaster's top analysts now!
We will never sell or rent your email id.
Please read our Terms

SUN PHARMA SHARE PRICE


Sep 18, 2020 (Close)

TRACK SUN PHARMA

  • Track your investment in SUN PHARMA with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
  • Add To MyStocks

SUN PHARMA - TEVA PHARMA COMPARISON

COMPARE SUN PHARMA WITH

MARKET STATS