Sun Pharmaceutical Industries Analysis

dividend

Pros

• Dividends per share have increased over the past 10 years.
• Dividends paid are well covered by earnings (3.9x coverage).
• Dividends after 3 years are expected to be well covered by earnings (6.3x coverage).
• Sun Pharmaceutical Industries's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).

Cons

• Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
• Sun Pharmaceutical Industries's dividend is below the markets top 25% of dividend payers in India (3.08%).

future

Pros

• Sun Pharmaceutical Industries's earnings growth is expected to exceed the low risk savings rate of 7.2%.
• Sun Pharmaceutical Industries's earnings are expected to exceed the low risk growth rate next year.
• Sun Pharmaceutical Industries's earnings are expected to increase by more than the low risk growth rate in 3 years time.
• An improvement in Sun Pharmaceutical Industries's performance (ROE) is expected over the next 3 years.
• Sun Pharmaceutical Industries's revenue growth is expected to exceed the India market average.

Cons

• Cash flow for Sun Pharmaceutical Industries is expected to increase but not above the 50% threshold in 2 years time.
• Sun Pharmaceutical Industries's earnings are expected to grow by 17.5% yearly, however this is not considered high growth (20% yearly).
• Sun Pharmaceutical Industries's earnings growth is positive but not above the India market average.
• Sun Pharmaceutical Industries's net income is expected to increase but not above the 50% threshold in 2 years time.
• Sun Pharmaceutical Industries is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
• Performance (ROE) is not expected to exceed the current IN Pharmaceuticals industry average.
• Sun Pharmaceutical Industries's revenue is expected to increase but not above the 50% threshold in 2 years time.
• Sun Pharmaceutical Industries's revenue is expected to grow by 7.7% yearly, however this is not considered high growth (20% yearly).

health

Pros

• Sun Pharmaceutical Industries is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
• Sun Pharmaceutical Industries is profitable, therefore cash runway is not a concern.
• Sun Pharmaceutical Industries is profitable, therefore cash runway is not a concern.
• Debt is well covered by operating cash flow (88.1%, greater than 20% of total debt).
• Debt is covered by short term assets, assets are 4.3x debt.
• Sun Pharmaceutical Industries's cash and other short term assets cover its long term commitments.
• The level of debt compared to net worth has been reduced over the past 5 years (31.5% vs 15.2% today).
• Interest payments on debt are well covered by earnings (EBIT is 16.3x coverage).
• Sun Pharmaceutical Industries's level of debt (15.2%) compared to net worth is satisfactory (less than 40%).

Cons

• High level of physical assets or inventory.

management

Pros

• The tenure for the Sun Pharmaceutical Industries board of directors is about average.
• Dilip's remuneration is lower than average for companies of similar size in India.
• Dilip's compensation has been consistent with company performance over the past year, both up more than 20%.
• The tenure for the Sun Pharmaceutical Industries management team is about average.

Cons

misc

Pros

Cons

• Sun Pharmaceutical Industries has significant price volatility in the past 3 months.

past

Pros

• Sun Pharmaceutical Industries's 1-year earnings growth exceeds its 5-year average (41.1% vs -8.7%)
• Sun Pharmaceutical Industries's earnings growth has exceeded the IN Pharmaceuticals industry average in the past year (41.1% vs 22.7%).

Cons

• Sun Pharmaceutical Industries's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
• Sun Pharmaceutical Industries used its assets less efficiently than the IN Pharmaceuticals industry average last year based on Return on Assets.
• Sun Pharmaceutical Industries's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
• Sun Pharmaceutical Industries has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).

value

Pros

• 524715 matched the Pharmaceuticals industry (26.7%) over the past year.
• 524715 outperformed the Market in India which returned -14.5% over the past year.
• BSE:524715 is up 7.6% along with the Pharmaceuticals industry (6.8%) over the past month.
• BSE:524715 is up 7.6% along with the India market (8%) over the past month.

Cons

• Sun Pharmaceutical Industries's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
• Sun Pharmaceutical Industries's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
• Sun Pharmaceutical Industries is overvalued based on assets compared to the IN Pharmaceuticals industry average.
• Sun Pharmaceutical Industries is poor value based on expected growth next year.
• Sun Pharmaceutical Industries is overvalued based on earnings compared to the IN Pharmaceuticals industry average.
• Sun Pharmaceutical Industries is overvalued based on earnings compared to the India market.