Information About Sun Pharmaceuticals Stock Price:

Sun Pharmaceutical is a premier medicine provider in India and worldwide. In 1983, Dilip Shanghvi founded the company; the company principally deals in medicines about diabetology, cardiology, neurology, et cetera. In the 50 years since its establishment, the Sun Pharma has incorporated manufacturing units across the globe and completed several acquisitions in the process. Apart from providing formulations that are used in tablets, creams, capsules, et cetera, the company has also developed its range of Active Pharmaceutical Ingredients (API). Their market share in India is presently the highest while in the US; they are in the fifth place. The company's vision is to touch lives globally as a leading provider of valued medicines.

History of Sun Pharmaceuticals:

In 1983, the Sun Pharmaceuticals was established by Mr. Shanghvi in Vapi. He began the company with just five products to treat disorders related to psychiatry, at the time. During that decade, the products related to cardiology and gastroenterology were also launched. As the company expanded, it started manufacturing products in other therapy areas as well, like neurology, gynecology, oncology, et cetera. It has also set up its R&D division knowing the importance of researching the field of medicines.

Sun Pharma has also set up API and formulation plants across the globe as per the international standards. The company have also been approved by USFDA and UK MHRA (Regulatory agency related to medicine and healthcare.

Listing and Indices of Sun Pharmaceutical Industries :

The company is traded on the two major stock exchanges in India - NSE, and BSE. The Sun Pharmaceutical Industries is also part of the other major market indices in India like BSE SENSEX and NIFTY 50. Though there are many pharma companies on NIFTY, only two pharma companies are on SENSEX with Sun Pharma being one of them. Along with these indices, the Sun Pharma is also a part of S&P CNX 500, BSE 100 and BSE 200.

Management of Sun Pharma:

Israel Makov - Chairman

Mr. Makov worked as the President and CEO of Teva Pharmaceutical Industries Limited before joining the Board of Directors of Sun Pharma as the Chairman. He served Teva Pharmaceutical for more than 13 years during which, he led the way for the company's worldwide expansion and made it the global leader in generic pharmaceuticals. He is also the founder of the Interpharm - Israel's first biotech company. All these accomplishments have made him one of the most respected corporate leaders in Israel.

His alma mater is Hebrew University, Jerusalem, where he attained a B.Sc. in Agriculture and M.Sc. in Economics.

Dilip Shanghvi - MD

Mr. Shanghvi is the founder and MD of Sun Pharmaceutical. While he was working with his father as a pharmaceutical distributor in Kolkata, he got the idea of manufacturing medicines. He initiated Sun Pharmaceutical in 1983 after getting B.Com. Degree from the Calcutta University, with a capital of Rs.10,000. Due to his relentless pursuit to become the largest pharma company in India, he was honored with several awards including the Padma Shri in 2016.

Wealth and Recent Performance of Sun Pharmaceuticals:

In the report for the third quarter of Fiscal 2018, the Sun Pharma reported overall sales and income to worth Rs.6,598 crore.

Except for the US operations, the sales in all other regions of the world have increased considerably. In India, sales for the Q3 were reported to be at Rs.2,085 crore - a 6% increase over third quarter of FY17 sales.

Emerging Markets has recorded a steady increase in sales as well, with the number standing at Rs.1,221 crores, in contrast to Rs.1,160 crores in Q3 FY17.

As for the investments made towards R&D have been reduced to Rs.473 crore from Rs.613 crore for Q3 FY17. These funds are for financing the development of Sun Pharma's 'Global Specialty Pipeline.'

The decline in sales in the US market is mainly because of the decrease in sales of generic Imatinib and Olmesartan authorized generics.

The net profit for this quarter was reported at Rs.365 crore, while the net profit was at Rs.878 crore. The differences between the two figures are because of the one-time tax adjustment which was done following the US tax rates.

Sun Pharma has also planned a through product offering in the US market. ANDAs (Abbreviated New Drug Application) has been approved for 418 products by the United States Food & Drug Administration (FDA), while 126 ANDAs are awaiting approval.

Why Invest in Sun Pharma?

Sun Pharma is one of the prominent pharmaceutical companies across the globe and became the biggest pharma company in India after the acquiring Ranbaxy. The Sun Pharma has more than 40 manufacturing facilities across the world, including India, Australia, Malaysia, Africa, and the United States. These facilities have been inspected by the proper authorities, along with USFDA. The Sunpharma has positioned themselves to focus on markets in Brazil, Russia, Romania and South Africa.

Sun Pharma's market share in India has been increased considerably over the years. As of December 2017, the market share of Sun Pharma is 8.5%. More than 40% of their revenues come from the US market.

It is witnessed that the company is built on firm foundations and ready to become a global leader in the pharmaceutical world. A high Profit/Earning ratio recommends that the stock may be overpriced, but after looking at their recent ventures and acquisitions, many experts will agree that buying this stock is worth for a long-term investment goal. However, research before taking any decision as the US FDA inspects the manufacturing units in India.

Note: The contents of this post/blog do not constitute any professional advice on a specific financial matter.

Indexes and Exchages

Bombay Stock Exchange (BSE)

The BSE or the Bombay Stock Exchange is Asia's oldest and first stock exchange. It is located in Mumbai, erstwhile Bombay, and it was formally established in 1875. An influential stockbroker and a businessman, Premchand Roychand, along with a handful of acquaintances, started the BSE journey in 1855. The BSE had its meetings under Banyan trees in its initial days. The group grew and eventually moved to a permanent place in 1874. BSE’s office is very appropriately named ‘Dalal Street’ which translated to Broker Street in Hindi. BSE operated as a floor trading exchange for a long time before ascending the digital ladder in 1995. They implemented an automated trading platform which had a capacity of 8 million per day. BSE went global in 2012, by joining the United Nations Sustainable Stock Exchange as a partner. Subsequently, in 2016, BSE established the first international exchange of India, called INX.

National Stock Exchange (NSE)

With an aim to induce transparency to the Indian capital market, the Indian Government implored a group of leading financial institutions for an effective solution. Accordingly, these financial institutions, along with the Government's support, established the first demutualized electronic exchange of India in 1992, known as the NSE. Since its inception, the NSE functioned on a totally automated screen-based digital trading system, which offered a great platform to connect the investor base of the entire country and offer them an easy trading facility. NSE was India's first electronic exchange and currently offers services pertaining to several segments, such as equity derivatives, clearing and settlement services in equity, trading, debt and currency derivatives, etc.

NIFTY Index

The NIFTY is National Stock Exchange of India's benchmark broad-based stock market index for the country's equity market. It lists 50 selected Indian companies across 12 sectors that own the largest and most liquid Indian securities. Hence, it is popularly called NIFTY 50. The Nifty index represents the weighted average of the stock value of those 50 companies. The India Index Services and Products or IISL, a company which is focused on an index as a core product, owns and manages the Nifty. Through one efficient portfolio, the Nifty exposes investment managers to the current status of the Indian market and helps in determining promising investment opportunities.

SENSEX Index

Similar to NSE's Nifty 50, BSE also has a stock market index known as Sensex. The word comes from the words 'Sensitive' and 'Index,' and is basically a portmanteau of the two. BSE 30 and S&P BSE SENSEX are two other names of this index. Sensex constitutes the top 30 financially flourishing and well-established companies from the ones listed on BSE. These companies typically represent diverse industrial sectors of the country's economy to ensure a holistic calculation. Usually, these are the companies that have the largest and most actively traded stocks. SENSEX is broadly reported through both print and electronic media in national as well as international markets. The scientifically designed indexing system is based on globally accepted construction and review methodologies. It is being calculated on the basis of a free-float market capitalization methodology since September 2003.