Hello friends today we will discuss about an investment call on Indian based pharma company
Sun Pharmaceuticals was established by Mr. Dilip Shanghvi in 1983 in Vapi, Gujarat with five products to treat psychiatric ailments. Cardiology products were introduced in 1987 followed by products in 1989. Today, it is the largest chronic prescription company in India and a market leader in gastroenterology, neurology, cardiology, orthopedic, ophthalmology, gastroenterology and nephrology.
The 2014 acquisition of Ranbaxy has made the company the largest pharma company in India, the largest Indian pharma company in US, and the 5th largest specialty generic company globally.
In March 2015, Sun Pharma announced it had agreed to buy GlaxoSmithKline’s opiates business in Australia to strengthen its pain management portfolio
Over 72% of Sun Pharma sales are from markets outside India, primarily in United States. US is the single largest market, accounting for about 50% turnover; in all, formulations or finished dosage forms, account for 93% of the turnover. Manufacturing is across 26 locations, including plants in US, Canada, Brazil, Mexico and Israel. In US, the company markets a large basket of generics, with a strong pipeline awaiting approval from the U.S. Food and Drugs Administration
They produce a comprehensive, diverse and highly complementary portfolio of specialty and generic products targeting a wide spectrum of chronic and acute treatments.
Company’s manufacturing capabilities span generics, branded generics, difficult-to-make technology intensive products, over-the-counter (OTC), anti-retrovirals (ARVs), Active Pharmaceutical Ingredients (APIs) and intermediates. Company’s presence in more than 150 countries helps them in being responsive to local treatment needs while continually improving their global product offering.
Company’s products have the hallmark of technology-based differentiation and cover the full range of dosage forms, including tablets, capsules, injectables, inhalers, ointments, creams and liquids. The therapeutic segments covered with portfolio of over 2000 high quality molecules include psychiatry, anti-infectives, neurology, cardiology, orthopaedic, diabetology, gastroenterology, ophthalmology, nephrology, urology, dermatology, gynaecology, respiratory, oncology, dental and nutritionals. In several countries, Sun Pharma ranks among the leading companies in these therapy areas.
Now let’s check company’s balance sheet
|Sources Of Funds|
|Total Share Capital||239.93|
|Equity Share Capital||239.93|
|Share Application Money||0.00|
|Preference Share Capital||0.00|
In terms of annual revenue during 2017-18 30264.23 crore with net profit of 7836.3 crore with EPS 32.66
For FY 2018-19 nine months total revenue at 26065.94 crore with net profit of 2633.79 crore with EPS 10.98
Currently company is struggling due to some USFDA issue for some plants company not doing well in overseas market but company is trying well to clear USFDA issues so in long run company will perform better than expectations
So if you take my opinion if you have 100,000 to invest than invest 25000 in staggered manner to for best buying average