Sun Pharma – Value of Investing

- Raj Raisinghani

Some Facts!!The next Infosys | Creating long-term value—Sun

Pharmaceutical It’s only 30 years on that Sun Pharma is hitting

its stride, having become one of the world’s most profitable generic drug makers.

It’s only 30 years on that the firm is hitting its stride, having become one of the world’s most profitable generic drug makers—net profit for fiscal 2013 stood at Rs.516.55 crore—and India’s biggest pharma company by market value. At Rs.1,21,811 crore, as of 6 December, Sun Pharma’s market value is about three times that of Dr. Reddy’s Laboratories Ltd, the next most valuable Indian drug maker.

The IPOThe company had 2 stock splits in

2010 where 1stock became 5 stocks and in 2012 when 5 stocks became 10.

The management of Sun Pharma claims that the amount of Rs 100000 invested in its IPO in 1994 would have cumulatively grown to about Rs 3.3 crores by December 2012 when stock price was Rs 710. With current price of Rs 848.55 it would be close to 4 crore rupees.