1. Fundamental analysis of Sun Pharmaceutical Industries
2. History and Background Founding members & When was it
founded? Founder: Dilip Shanghvi Founded: 1983 Vision and mission
statement Mission The mission of Sun India Pharmacy Ltd. is good
health and happiness for all. We believe in utilizing modern
science to bring out the essence of nature and provide effective
and high quality medicines at affordable prices. Vision With the
prime objective of good health to all, Sun India Pharmacy aims to
be amongst the top ten Generic Pharma and OTC players in India in
the span of next ten years. We intend to achieve this with the help
of strategic growth and stringent quality measures.
3. Milestones Timeline 1983 Sun Pharma begins operations in
Kolkata with 5 psychiatry based products, first with 2 people and
then with a 10 employee team. Year 1 turnover Rs. 1 million. 1988
With the launch of the brands Monotrate and Angizem, the first few
cardiology products are launched. 1993 SPARC, the first research
center, is inaugurated by His Excellency Shri K. R. Narayanan, the
Vice President of India. An office is begun in Moscow. Products are
now registered across 10 markets. 1996 Product registrations are
now in place across 24 countries. 1997 It begin the first of its
international acquisitions. As part of a technology forequity
agreement, a stake is acquired in a generic dosage form
manufacturer; the Detroitbased Caraco Pharm Labs. 1999 Rank moves
within the top 10 in the domestic market. 2001 A new formulation
plant is built in Dadra. 2002 Forbes Global ranks Sun Pharma in the
list of best small 200 companies for 2002 (turnover less than $500
million). 2003 Forbes Global ranks Sun Pharma in the list of the
best small 200 companies for 2003 (turnover less than
$500million).
4. 2004 Sun Pharma acquires common stock and options from 2
large shareholders of Caraco, increasing stake to over 60% from 44%
at a total outlay of about $42 million. By 2007, this stake has
reached 75% on a diluted basis. 2005 Sun Pharma buys a plant in
Bryan, Ohio, US and the business of ICN, Hungary from Valeant
Pharma 2006 Announced the demerger of innovative business with
pipelines, people, equipment and funding, into a new company. 2007
Completed the demerger of the innovative business, with requisite
legal and regulatory approvals. SPARC ltd, the new company, is
listed on the stock exchanges in India, the first pure research
company to be so listed 2008 In November 2008, it along with its
subsidiaries, acquired 100% ownership of Chattem Chemicals, Inc.,a
narcotic raw material importer and manufacturer of controlled
substances with a approved facility in Tennessee. 2011 Dilip
Shanghvi, CMD, received the E&Y Entrepreneur of the Year Award
for 2010. 2014 April 6, 2014 Sun Pharmaceutical Industries and
Ranbaxy Laboratories announced that they have entered into
definitive agreements pursuant to which Sun Pharma will acquire
100% of Ranbaxy in an allstock transaction
5. Promoters Management and Personnel No. Name of the
Shareholder Number As a % of grand total 1 Dilip Shantilal Shanghvi
231,140,480 11.16 2 Viditi Investment Pvt Ltd 201,385,320 9.72 3
Tejaskiran Pharmachem Industries Pvt Ltd 195,343,760 9.43 4 Family
Investment Pvt Ltd 182,927,440 8.83 5 Quality Investment Pvt Ltd
182,868,640 8.83 6 Virtuous Finance Pvt Ltd 97,104,040 4.69 7
Virtuous Share Investments Pvt Ltd 83,976,000 4.05 8 Sholapur
Organics Pvt Ltd 16,035,080 0.77 9 Jayant Shantilal Sanghvi
7,416,840 0.36 10 Vibha Dilip Shanghvi 5,784,000 0.28 11 Kumud
Shantilal Shanghvi 3,280,000 0.16 12 Aalok Dilip Shanghvi 2,885,000
0.14 13 Vidhi Dilip Shanghvi 2,830,000 0.14
7. Management and Personnel Name Designation Name Designation
Israel Makov Chairman Dilip S Shanghvi Managing Director Sudhir V
Valia Whole Time Director Sailesh T Desai Whole Time Director S
Mohanchand Dadha Director Hasmukh S Shah Director Keki M Mistry
Director Ashwin Dani Director Rekha Sethi Director
8. Company Analysis Current product and service mix of Sun
Pharma Provide wide range of Ayurvedic and Allopathic product.
Provide high quality medicines at the most affordable prices.
Product AYURVEDIC PRODUCTS TABLETS JAR SOFTGEL CAPSULES CAPSULES
TABLETS SYRUPS
9. Company Analysis USP Bringing Healthcare at affordable
prices for India masses Advertising and Marketing Strategy For a
company that started in 1983 with just five people and five
products, it's no mean achievement that Sun Pharma today commands
the largest market capitalization of Rs 21,271 crore (Rs 212.71
billion) in the pharma universe. Sun Pharma focuses on niche
segments such as psychiatry and lifestyle drugs, the company has
raced ahead, with its business growing four-fold between 1999-2000
and now, with revenues of Rs 2,237 crore (Rs 22.37 billion). From
the very beginning sun pharma has focused on the high-margin
chronic care therapy products that have made the company very
profitable. Building a profitable business or creating wealth for
his shareholders. Today, with a domestic market share of 3.2 per
cent, it is ranked number six.
10. Geographical Reach AFRICA ASIA PACIFIC EUROPE NORTH AMERICA
Morocco Australia France Canada Nigeria Malaysia Germany USA South
Africa Myanmar Ireland SOUTH AMERICA Sri Lanka Italy Brazil
Lithuania CIS The Netherlands Russia Poland Ukraine Romania Spain
United Kingdom Denmark Finland Norway Sweden
11. Geographical Reach
12. Industry Analysis Industry wide growth parameters Increase
in life expectancy and ageing population: Life expectancy is
expected to reach 73.7 years by 2017 from an estimated 72.6 years
in 2012, bringing more than 10% of the total global population to
over the age of 65 years. Rising income of households: Rising
income will make growth of the pharmaceuticals industry grow.
Growing incidence of chronic diseases: Healthcare demand for
diseases will contribute to the industrys growth. Improved
healthcare access reforms: With more than one billion people
lacking access to a health care system across reforms, including
increases in government funding and broader insurance
coverage.
13. Industry Analysis Market Share Total Sales Turnover of
PHARMACEUTICALS industry: 126098.11 in Cr Sales turnover: 8017.2 in
Cr Net total percentage of turnover: 6.3579 TOTAL SALES TURNOVER OF
PHARMACUTICAL INDUSTRY SALES TURNOVER OF SUN PHARMA 0 20000 40000
60000 80000 100000 120000 140000
14. PEER COMPARISION Name Last Price Market Cap. (Rs. cr.)
Sales Turnover Net Profit Total Assets Sun Pharma 843.9 203078.07
8017.2 -1472.76 9816.89 Lupin 1731.7 77897.91 9752.47 2397.35
7118.44 Dr Reddys Labs 3347.2 57067.77 10010.94 1679.35 11993.5
Cipla 612.9 49213.45 10131.78 1181.09 10968.98 Aurobindo Pharm
1335.3 38988.39 8095.1 1516.34 6827.25 Cadila Health 1793.7
36725.74 5284.43 1271.12 5041.1
15. Regulation CDSCO Central Drugs Standard Control
Organization (CDSCO), Ministry of Health & Family Welfare,
Government of India provides general information about drug
regulatory requirements in India. NPPA The clinical trials
legislative requirements are guided by specifications of Schedule
Yof The D&C Act. D & C Act, 1940 The clinical trials
legislative requirements are guided by specifications of Schedule
Yof The D&C Act. Schedule M The clinical trials legislative
requirements are guided by specifications of Schedule Yof The
D&C Act. Schedule T The clinical trials legislative
requirements are guided by specifications of Schedule Yof The
D&C Act. Schedule Y The clinical trials legislative
requirements are guided by specifications of Schedule Yof The
D&C Act.
16. Regulation GCP guidelines The Ministry of Health, along
with Drugs Controller General of India (DCGI) and Indian Council
for Medical Research (ICMR)has come out with draft guidelines for
research in human subjects. These GCP guidelines are essentially
based on Declaration of Helsinki, WHO guidelines and ICH
requirements for good clinical practice. The Pharmacy Act,1948 The
Pharmacy Act, 1948 is meant to regulate the profession of Pharmacy
in India. The Drugs and Magic Remedies (Objectionable Ad
vertisement) Act, 1954 The Drugs and Magic Remedies (Objectionable
Advertisement) Act, 1954 provides to control the advertisements
regarding drugs; it prohibits the advertising of remedies alleged
to possess magic qualities. The Narcotic Drugs and Psychotropic
Substances Act, 1985 The Narcotic Drugs and Psychotropic Substances
Act, 1985 is an act concerned with control and regulation of
operations relating to Narcotic Drugs and Psychotropic
Substances.
17. Future Prospectus & Recommendation Growth Prospectus
The Rs 1,400-crore (Rs 14 billion) Sun Pharmaceuticals has made
substantial investments in R&D over the past five to six years,
the corporate decision to convert this intellectual asset into a
future growth-driver by demerging the innovative research arm come
only now. Sun Pharmaceutical Industries, Indias largest drugmaker,
announced the closure of its merger with Ranbaxy Laboratories and
said the integration would deliver synergies worth $250 million
(about Rs 1,500 crore) in three years. Suns superior marketing and
distribution franchise in the US should help it scale up revenues
from Ranbaxys generic product basket. Sun can leverage its
expertise in the derma market (through its subsidiary Taro Pharma)
to boost revenues from Ranbaxys acne drug Absorica Suns management
expects the Ranbaxy merger to add $250 million to its operating
profit over one-two years. The Ranbaxy merger will strengthen Suns
position in emerging markets in the Asia-Pacific, Latin America,
Africa and West Asia.
18. 4 quarter performance snapshot Period Ending: Mar'15 Dec'14
Sept'14 Jun'14 Total Revenue 61570.5 69294.6 143469.3 39355.8 Gross
Profit 45596.1 52167.6 109179 31707.4 Operating Income 3304.6
19361.3 42644.7 16045.9 Net Income 8880.5 3953.3 32572.2 13905.1
Mar'15 Dec'14 Sept'14 Jun'14 0 20000 40000 60000 80000 100000
120000 140000 160000 Total Revenue Gross Profit Operating Income
Net Income
19. Recommendations MARKET CAP of Sun Pharma (RS CR)204,545.98
SECTOR: PHARMACEUTICALS Return on Investment TTM 21.05% (TTM =
Trailing Twelve Months) Last 3 month high on NSE:1,200.80 Last 3
month low on NSE: 807.25 Today (18 jun) open on NSE : 847.00 In
next slide past three month data shows the downward trend `from my
point of it's good opportunity for investor to invest stock because
of high earning visibility in pharmaceutical sector.
20. Recommendations Past three Month Data 0 2 0 0 4 0 0 6 0 0 8
0 0 1 0 0 0 1 2 0 0 1 4 0 0 3 / 1 8 / 2 0 1 5 4 / 1 8 / 2 0 1 5 5 /
1 8 / 2 0 1 5 H i g h L o w
21. Reasons Pharma stocks have moved up sharply in the last one
year. Pharma companies were riding on the back of rupee
depreciation and a recovery in the US market, while investors have
found safety in the pharmaceuticals sector due to its reputation as
a 'safe haven' against high inflation and interest rates.