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Sun Pharma In The News

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Sun Pharma tops combined market cap of Ranbaxy, Lupin


SUN Pharmaceutical Industries has entrenched its position as the most valuable drugmaker in India after its shares surged to a fresh 52-week high of Rs 476 on Monday.
Its current value of Rs 46,536 crore, as per BSE data, exceeds the com'bined market capitalisation of Ranbaxy and Lupin. Ranbaxy has a market cap of Rs 23,820 crore and Lupin Rs 22,688 crore, and together they are valued at Rs 46,498 crore.
Sun achieved this feat as its shares rose faster than its rivals even though it has only 3.7 per cent share of the highly competitive Indian pharma market, as per IMS ORG. According to the pharmaceutical market research agency, Ranbaxy has a market share of 4.9 per cent and Lupin 3.2 per cent.
"Sun Pharma's valuation is high because the company commands a high ebitda margin of 35-40 per cent. The company is debt-free and its domestic growth is high at 36 per cent. Moreover, acquisition of Taro is EPS accretive, and Sun could get into the dermatology segment in which they were not present," said Ranjit Kapadia, senior vice-president (institutional research) at HDFC Securities