Sun Pharma is trading at Rs. 1,408 per share with a market cap of ₹ 3,37,802 Cr (February 1st, 2024)
Sun Pharma is one of the largest pharmaceutical companies in India, with a strong presence in both the domestic and international markets. In recent years, Sun Pharma’s share price has been a topic of interest for investors and analysts alike, as the company has been consistently performing well.
Sun Pharma’s recent announcement of the acquisition of American company Concert for $576 million has also generated a lot of buzz and speculation about the future of the company.
Sun Pharma offers a diverse portfolio of generic and specialty medicines, catering to a wide range of chronic and acute treatments. Their product range includes generics, branded generics, specialty medicines, technologically complex products, antiretrovirals, APIs, and intermediates. The company provides medicines in various dosage forms such as injectables, sprays, ointments, creams, liquids, tablets, and capsules.
In this article, we will take a closer look at Sun Pharma’s share price target for the years 2024 to 2030 and whether it is a good auto stock to buy.
We will also explore the impact of the acquisition on Sun Pharma’s financials and growth prospects.
Sun Pharma Q3 FY24 Financial Highlights
- Consolidated Net Profit: ₹2,523.75 crore, up 16.5% YoY.
- Consolidated Revenue: ₹12,380.7 crore, a YoY increase from ₹11,240.97 crore.
- Ebitda: ₹3,476.8 crore, up 15.8% YoY, with an Ebitda margin of 28.1%.
- R&D Expenditure: ₹824.5 crore, reflecting ongoing investments in specialty and generic pipelines.
- Formulations Sales in India: ₹3,778.5 crore, up 11.4% YoY, contributing to 31% of total sales.
- Global Specialty Sales: $296 million, marking a growth of 24.2% YoY (excluding milestones), accounting for 19.1% of total sales.
- US Formulations Revenue: $477 million, up 13.2% YoY, including contributions from Taro Pharmaceuticals.
- Emerging Markets Formulations Sales: $252 million, a 2.3% decline due to adverse currency movements, contributing to 17% of total sales.
- Rest of the World Markets: Up 12.9% YoY at $214 million, representing 15% of total sales.
- Merger Agreement with Taro: Signed for approximately $347.8 million, subject to various closing conditions.
- API External Sales: ₹466.1 crore, a 9.65% decrease, as the company focuses on increasing API supply for captive consumption.
You can buy Sun Pharma shares from the following trading platforms:
➤ Zerodha
➤ Upstox
➤ Groww
➤ AngelOne
➤ ICICIDirect
| When | Maximum Price | Minimum Price |
| February 2024 | 1,520.64 | 1,322.30 |
| March 2024 | 1,551.67 | 1,349.28 |
| April 2024 | 1,506.48 | 1,309.98 |
| May 2024 | 1,484.22 | 1,290.62 |
| June 2024 | 1,537.65 | 1,337.08 |
| July 2024 | 1,522.27 | 1,323.71 |
| August 2024 | 1,583.16 | 1,376.66 |
| September 2024 | 1,646.49 | 1,431.73 |
| October 2024 | 1,614.20 | 1,403.66 |
| November 2024 | 1,662.63 | 1,445.77 |
| December 2024 | 1,704.20 | 1,481.91 |
Sun Pharma’s share price is projected to witness fluctuations throughout 2024. Starting at ₹1,408 as of February 1st, 2024, the forecasted price ranges from a minimum of ₹1,290.62 in May to a maximum of ₹1,704.20 in December.
With a market cap of ₹3,37,802 crore and current stock P/E at 36.1, Sun Pharma maintains a resilient position. The company’s financial health is reflected in its ROCE and ROE at 16.4% and 16.6%, respectively, with a book value of ₹233 and a face value of ₹1.00. The stock’s dividend yield stands at 0.82%, showcasing a balanced investment profile.
| When | Maximum Price | Minimum Price |
| January 2025 | 1,738.28 | 1,337.14 |
| February 2025 | 1,782.85 | 1,371.42 |
| March 2025 | 1,852.38 | 1,424.91 |
| April 2025 | 1,816.06 | 1,396.97 |
| May 2025 | 1,763.17 | 1,356.28 |
| June 2025 | 1,842.51 | 1,417.31 |
| July 2025 | 1,806.38 | 1,389.52 |
| August 2025 | 1,862.25 | 1,432.50 |
| September 2025 | 1,927.43 | 1,482.64 |
| October 2025 | 1,977.54 | 1,521.19 |
| November 2025 | 2,026.98 | 1,559.21 |
| December 2025 | 2,077.65 | 1,598.20 |
In 2025, Sun Pharma’s share price is anticipated to experience a positive trajectory, ranging from a minimum of ₹1,337.14 in January to a maximum of ₹2,077.65 in December. These projections suggest a potential upward trend, reflecting optimism in the market for Sun Pharma’s performance in the coming year.
| When | Maximum Price | Minimum Price |
| January 2026 | 2,139.98 | 1,646.14 |
| February 2026 | 2,194.85 | 1,688.35 |
| March 2026 | 2,280.45 | 1,754.20 |
| April 2026 | 2,235.74 | 1,719.80 |
| May 2026 | 2,170.62 | 1,669.71 |
| June 2026 | 2,268.30 | 1,744.84 |
| July 2026 | 2,223.82 | 1,710.63 |
| August 2026 | 2,292.60 | 1,763.54 |
| September 2026 | 2,372.84 | 1,825.26 |
| October 2026 | 2,434.53 | 1,872.72 |
| November 2026 | 2,495.40 | 1,919.54 |
| December 2026 | 2,557.78 | 1,967.53 |
In 2026, Sun Pharma’s share price is predicted to continue its upward trajectory, ranging from a minimum of ₹1,646.14 in January to a maximum of ₹2,557.78 in December.
| When | Maximum Price | Minimum Price |
| January 2027 | 2,608.94 | 2,006.88 |
| February 2027 | 2,675.83 | 2,058.33 |
| March 2027 | 2,780.19 | 2,138.61 |
| April 2027 | 2,725.68 | 2,096.68 |
| May 2027 | 2,646.29 | 2,035.61 |
| June 2027 | 2,765.37 | 2,127.21 |
| July 2027 | 2,711.15 | 2,085.50 |
| August 2027 | 2,795.00 | 2,150.00 |
| September 2027 | 2,892.83 | 2,225.25 |
| October 2027 | 2,968.04 | 2,283.11 |
| November 2027 | 3,042.24 | 2,340.18 |
| December 2027 | 3,118.30 | 2,398.69 |
| When | Maximum Price | Minimum Price |
| January 2028 | 3,180.66 | 2,446.66 |
| February 2028 | 3,262.22 | 2,509.40 |
| March 2028 | 3,389.44 | 2,607.26 |
| April 2028 | 3,322.98 | 2,556.14 |
| May 2028 | 3,226.20 | 2,481.69 |
| June 2028 | 3,371.38 | 2,593.37 |
| July 2028 | 3,305.27 | 2,542.52 |
| August 2028 | 3,407.50 | 2,621.15 |
| September 2028 | 3,526.76 | 2,712.89 |
| October 2028 | 3,618.45 | 2,783.43 |
| November 2028 | 3,708.92 | 2,853.01 |
| December 2028 | 3,801.64 | 2,924.34 |
| When | Maximum Price | Minimum Price |
| January 2029 | 3,877.67 | 2,982.82 |
| February 2029 | 3,977.10 | 3,059.31 |
| March 2029 | 4,132.21 | 3,178.62 |
| April 2029 | 4,051.18 | 3,116.29 |
| May 2029 | 3,933.19 | 3,025.53 |
| June 2029 | 4,110.18 | 3,161.68 |
| July 2029 | 4,029.59 | 3,099.68 |
| August 2029 | 4,154.21 | 3,195.55 |
| September 2029 | 4,299.61 | 3,307.39 |
| October 2029 | 4,411.40 | 3,393.39 |
| November 2029 | 4,521.69 | 3,478.22 |
| December 2029 | 4,634.73 | 3,565.18 |
| When | Maximum Price | Minimum Price |
| January 2030 | 4,727.42 | 3,636.48 |
| February 2030 | 4,848.64 | 3,729.72 |
| March 2030 | 5,037.74 | 3,875.18 |
| April 2030 | 4,938.96 | 3,799.20 |
| May 2030 | 4,795.10 | 3,688.54 |
| June 2030 | 5,010.88 | 3,854.53 |
| July 2030 | 4,912.63 | 3,778.95 |
| August 2030 | 5,064.57 | 3,895.82 |
| September 2030 | 5,241.83 | 4,032.18 |
| October 2030 | 5,378.12 | 4,137.01 |
| November 2030 | 5,512.57 | 4,240.44 |
| December 2030 | 5,650.38 | 4,346.45 |
Financial Condition of Sun Pharma: Last 5 years
| Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | |
|---|---|---|---|---|---|
| Sales (Crore Rs) |
29,066 | 32,838 | 33,498 | 38,654 | 43,886 |
| Expenses (Crore Rs) |
22,689 | 25,855 | 25,028 | 28,397 | 32,239 |
| Operating Profit (Crore Rs) |
6,377 | 6,983 | 8,470 | 10,258 | 11,647 |
| OPM % | 22% | 21% | 25% | 27% | 27% |
| Other Income (Crore Rs) |
-258 | 382 | -3,449 | -3,505 | 463 |
| Interest (Crore Rs) |
555 | 303 | 141 | 127 | 172 |
| Depreciation (Crore Rs) |
1,753 | 2,053 | 2,080 | 2,144 | 2,529 |
| Profit before tax (Crore Rs) |
3,810 | 5,010 | 2,799 | 4,481 | 9,408 |
| Tax % | 16% | 16% | 18% | 24% | 9% |
| Net Profit (Crore Rs) |
3,208 | 4,172 | 2,272 | 3,389 | 8,513 |
| EPS in Rs | 11.11 | 15.69 | 12.10 | 13.64 | 35.32 |
| Dividend Payout % | 25% | 25% | 62% | 73% | 33% |
Over the last five years, Sun Pharma has shown consistent growth in its financial performance. The company’s sales have steadily increased from Rs. 29,066 in March 2019 to Rs. 43,886 in March 2023. Despite the rise in expenses, Sun Pharma has managed to maintain a healthy operating profit, with figures reaching 11,647 in the latest year.
The company has been able to improve its operating profit margin (OPM %) over the years, demonstrating efficient cost management. Additionally, Sun Pharma has generated supplementary income from other sources, albeit with some fluctuations. Although the company has incurred interest and depreciation expenses, it has managed to maintain a favorable profit before tax.
Sun Pharma’s net profit has shown a significant growth trend, increasing from 3,208 in March 2019 to 8,513 in March 2023. This growth is reflected in the rising earnings per share (EPS), indicating a positive outlook for shareholders. It is worth noting that the dividend payout percentage has varied over the years, with a lower payout in recent years.
Overall, Sun Pharma has showcased consistent growth and profitability in its financial performance over the past five years.
Motilal Oswal recommends buying Sun Pharmaceutical Industries with a target price of Rs 1635.
Sharekhan suggests purchasing Sun Pharmaceutical Industries, setting a target price of Rs 1400.
FAQS
It is anticipated that Sun Pharma’s share price will increase to ₹1,704.20 by the end of 2024. The bullish trend and the uptrend indicate that 2024 could be a good year for Sun Pharma shareholders.
The share price target of Sun Pharma for 2025 might be around ₹2,077.65. This growth is a positive sign for Sun Pharma and its investors, indicating the company is poised for continued success in the future.
The per-share price of Sun Pharma might reach around Rs. ₹5,650.38 by the end of 2030.
Also read:
- Arvind Ltd Share Price Target
- ICICI Prudential Life Insurance Company Share Price Target
- Kotak Mahindra Bank Share Price Target
Conclusion
In conclusion, Sun Pharma has exhibited a commendable financial performance over the last five years. The company has experienced consistent growth in sales, demonstrating its ability to capture market opportunities and expand its revenue base. Despite facing increasing expenses, Sun Pharma has effectively managed its operations, maintaining a healthy operating profit and improving its operating profit margin over the years. The company’s focus on cost management and efficiency has contributed to its overall profitability.
Additionally, Sun Pharma has generated additional income from other sources, although with some fluctuations. The company has effectively controlled interest and depreciation expenses, resulting in a favorable profit before tax. The strong growth in net profit highlights Sun Pharma’s ability to generate substantial earnings, which is reflected in the rising earnings per share.
However, the dividend payout percentage has varied, indicating a more conservative approach to distributing profits to shareholders in recent years.
Overall, Sun Pharma’s financial performance demonstrates its resilience, growth potential, and commitment to delivering value to its stakeholders.
According to the latest financial results, it suggests that Sun Pharma is a financially strong and growing company and could be a good pharma stock to buy in 2024. However, please do not invest all your money in one go. I suggest investing not more than 0.5% of your total portfolio in this Pharma stock.
What did we learn?
