Sun Pharma Stock : A Trusted Investment Choice with Impressive Stability and Financial Strength

Sun Pharma Stock : A Trusted Investment Choice with Impressive Stability and Financial Strength
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Sun Pharma Stock Update (As of September 29, 2023):

Sun Pharmaceutical Industries Ltd. Is making notable strides in the stock market, exhibiting a promising performance on this date.

NSE (National Stock Exchange) Performance:

As of 01:36 pm IST, Sun Pharma’s stock is trading at ₹1,163.00, marking a substantial gain of +2.72% compared to the previous day’s closing price of ₹1,132.30.

BSE (Bombay Stock Exchange) Performance:

Simultaneously, on the BSE, Sun Pharma’s stock is priced at ₹1,163.00, reflecting a notable increase of +2.72% from the preceding closing value of ₹1,132.15.

Intraday Insights of Sun Pharma:

One of the intriguing aspects of Sun Pharma’s performance is its rarity in experiencing intraday declines exceeding 5%. Over the past 18 years, such declines have occurred in only 1.01% of trading sessions. This robust stability indicates a strong position in the market.

Financial Strength:

Sun Pharma’s financial health is impressive. Its Return on Equity (ROE) for the fiscal year ending March 31, 2023, stands at an impressive 15.13%, outperforming its 5-year average of 8.89%. This underlines the company’s consistent ability to generate value for shareholders.

Additionally, Sun Pharma has consistently outperformed its 3-year Compound Annual Growth Rate (CAGR) with an annual revenue growth rate of 12.49%, surpassing the 3-year CAGR of 9.87%. This showcases its prowess in revenue generation.

Key Metrics:

In terms of key metrics, Sun Pharma boasts a Price-to-Earnings (P/E) ratio of 33.09 and an Earnings Per Share (EPS) of 35.16. Its impressive Market Capitalization of ₹2.78 trillion underscores its significant presence in the market.

Returns for Investors:

Investors in Sun Pharma have seen remarkable returns on their investments:

In a single day, the stock surged by +12.76%.

Over the course of one year, it delivered a substantial gain of +124.99%.

Over five years, it appreciated impressively by +86.64%.

Financial Metrics of Sun Pharma :

Sun Pharma’s financial health remains robust, with healthy profit margins and a positive cash flow, ensuring stability and growth potential.

Balance Sheet (FY23):

In terms of its balance sheet, total assets amount to an impressive ₹80.74 trillion, while total equity stands strong at ₹59.32 trillion. These figures signify a strong financial foundation.

Cash Flow:

Analyzing its cash flow, the company generated ₹4.96 trillion from operating activities, indicating strong cash generation from core operations.

Although the investing cash flow is negative at -₹7.94 trillion, this suggests strategic investments for future growth. The financing cash flow is ₹2.37 trillion.

Key Financial Ratios:

Key financial ratios highlight Sun Pharma’s strength: ROE (Return on Equity) is an impressive 15.13%.

ROCE (Return on Capital Employed) stands at 16.02%.

The P/E (Price-to-Earnings) ratio of 27.86 showcases investor confidence in the company’s prospects.

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Ownership Structure:

Ownership in Sun Pharma is diversified across various categories: Promoter Pledge: 2.29% Foreign Institutional Investors (FII): 16.48% Domestic Institutional Investors (DII): 19.50%

As of September 29, 2023, Sun Pharmaceutical Industries Ltd. Stands as a compelling contender in the pharmaceutical sector, offering investors stability, growth potential, and consistent financial performance.

Its stock performance on both NSE and BSE indicates positive market sentiment and presents an intriguing investment opportunity.

Why Sun Pharma Stock Is a Must-Include for Smart Investors :

Market Stability: Sun Pharma’s extraordinary stability, with minimal intraday declines over the last 18 years, provides investors with a secure and reliable investment choice. This steadiness is especially appealing to risk-averse investors.

Financial Fortitude: The company’s robust financial performance, evident through a stellar Return on Equity (ROE) of 15.13% (outperforming its 5-year average), showcases its ability to generate consistent value for shareholders. This financial strength is a magnet for investors seeking reliability.

Impressive Returns: Sun Pharma has consistently rewarded investors with substantial gains over various time frames. Such a track record attracts those looking for capital appreciation in their investments.

Rock-Solid Balance Sheet: Sun Pharma boasts a strong balance sheet featuring substantial assets and equity, offering investors confidence in the company’s resilience during economic uncertainties.

Positive Key Metrics: Key financial metrics like the Price-to-Earnings (P/E) ratio, Earnings Per Share (EPS), and Market Capitalization underscore the market’s faith in the company’s growth prospects.

Financial Health: The company’s healthy profit margins and positive cash flow signal its financial well-being, instilling confidence in its operational efficiency.

Strategic Investments: Despite a negative investing cash flow, Sun Pharma’s strategic investments exemplify a forward-thinking approach to expansion, appealing to investors with a long-term vision.

Ownership Diversity: A diverse ownership structure with participation from promoters, foreign institutional investors (FIIs), domestic institutional investors (DIIs), and others mitigates concentrated ownership risks and appeals to a broad spectrum of investors.

Pharmaceutical Industry Potential: As a leading player in the pharmaceutical sector, Sun Pharma taps into the ever-growing demand for healthcare and pharmaceutical products, making it a strategic choice for investors eyeing the industry’s growth potential.

Market Trust: Sun Pharma’s strong presence on both the NSE and BSE reflects investor trust in its business model, management, and future prospects, making it a valuable asset in any investor’s portfolio.

FAQs About Sun Pharma Stock :

What is the current stock price of Sun Pharma?

As of September 29, 2023, Sun Pharma’s stock is trading at ₹1,163.00 on both the NSE and BSE.

How has Sun Pharma’s stock performed recently?

Sun Pharma has shown impressive performance with a gain of +2.72% compared to the previous day’s closing price on both the NSE and BSE.

Is Sun Pharma’s stock stable for investment?

Yes, Sun Pharma has exhibited remarkable stability, with intraday declines exceeding 5% occurring in only 1.01% of trading sessions over the past 18 years.

What are the key financial indicators for Sun Pharma?

Key metrics include a Price-to-Earnings (P/E) ratio of 33.09, Earnings Per Share (EPS) of 35.16, and a Market Capitalization of ₹2.78 trillion.

Has Sun Pharma provided good returns to investors?

Yes, the stock has delivered impressive returns, including a +124.99% gain over one year and +86.64% over five years.

How strong is Sun Pharma’s financial position?

Sun Pharma’s financial health is robust, with strong profit margins and a positive cash flow, indicating stability and growth potential.

What is the ownership structure of Sun Pharma?

Ownership is diversified, with promoters holding 2.29%, foreign institutional investors (FIIs) at 16.48%, and domestic institutional investors (DIIs) at 19.50% of shares.

Disclaimer:

The information provided in this blog is for general informational purposes only and should not be considered as professional financial or investment advice. Always conduct thorough research and seek advice from a qualified financial advisor before making any investment decisions. The blog author and publisher are not responsible for any actions taken based on the information provided in this blog. Any reliance on the content is at your own risk. Remember that the financial markets can be volatile, and past performance is not indicative of ture results. The company mentioned in the blog may have undergone changes or developments that are not reflected here. Please verify the information with credible sources before making any financial decisions.

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