BSE SENSEX
25,437
S&P CNX
7,806
Sun Pharma
CMP: INR811
TP: INR975(+20%)
Buy
Keveyis’ commercial sales & promotional activities halted
Investment in specialty to continue
2 May 2016
Update
| Sector:
Healthcare
Stock Info
Bloomberg
Equity Shares (m)
52-Week Range (INR)
1, 6, 12 Rel. Per (%)
M.Cap. (INR b)
M.Cap. (USD b)
12M Avg Val (INR M)
Free float (%)
SUNP IN
2,406.7
1,010/706
-1/-2/-8
1,952.9
29.4
3,594
45.0
Taro (a subsidiary of Sun Pharma) announced today that it has ceased commercial
sales and related promotional activities for Keveyis
We had estimated revenue of ~USD40m in FY17 from Keveyis (0.8% of sales and
~1.3% of EBITDA). We believe that higher Gleevec sales, coupled with new product
launches, could help offset this loss
Multiple triggers in near term including MK-3222Ph-3 data and Halol re-inspection to
be closely evaluated by investors
Sun Pharma remains one of our top picks due to its niche generic pipeline, enhanced
focus on specialty business, strong FCF generation and superior execution track
record
Financials Snapshot (INR b)
Y/E Mar
2016E 2017E 2018E
Net Sales
283.0 336.0 361.6
EBITDA
82.5 111.8 128.9
PAT
47.8
79.5
93.8
EPS (INR)
19.9
28.9
39.0
Gr. (%)
0.9
66.3
18.0
BV/Sh (INR)
120.3 146.3 178.3
RoE (%)
17.5
21.7
24.0
RoCE (%)
21.8
30.0
30.8
P/E (x)
40.8
28.1
20.8
P/BV (x)
6.8
5.6
4.6
Shareholding pattern (%)
As On
Dec-15 Sep-15 Dec-14
Promoter
55.0
54.7
63.7
DII
9.2
8.1
4.9
FII
26.1
27.6
21.7
Others
9.8
9.7
9.8
FII Includes depository receipts
Stock Performance (1-year)
Sun Pharma.Inds.
Sensex - Rebased
1,100
1,000
900
800
700
Keveyis sales halted voluntarily:
Given the high costs and resources required
to identify and reach a limited number of viable patients, Taro has realized that
it will be unable to sustain its current level of investment in Keveyis. Despite
the product’s higher initial potential revenue expectation (>USD100m in three
years) due to the availability of parallel options, its sales never picked up
(~USD1m since its launch in Sep-15). We had estimated revenue of ~USD40m
in FY17 from Keveyis (0.8% of sales and ~1.3% of EBITDA). We believe that
higher Gleevec sales, coupled with new product launches, could help offset this
loss.
Still the best play among companies in Indian specialty pharma:
We believe
that Keveyis’ failure will not act as a deterrent to SUNP for making further
investments in the specialty business. In-licensing of MK-3222 (Phase-3
biologics) and the acquisition of InSite (niche specialty pharma company
focused on ophthalmics) indicate that SUNP is transitioning to a specialty
pharma player. Given that generics growth is expected to decline going
forward (due to new competition and fewer big products going off patent),
companies focusing on the specialty business will continue to deliver a robust
growth. SUNP’s net cash balance sheet of USD1.2bn, annual FCF generation of
USD1b and a good track record of developing complex generics make it the
best play among companies in the Indian specialty pharma business.
Key near-term catalysts:
1) Release of MK-3222 Phase-3 data in 1Q FY17; 2)
Halol remediation on track with re-inspection expected in 1H FY17; 3) Gleevec
FTF sales data could surprise positively (current market share of >50% vs.
management’s guidance of ~30% provided during 3QFY16 con call); 4) Higher
than expected RBXY integration benefits in FY17 (currently estimated to be
~USD100m)
Sun Pharma remains one of our top picks in Indian pharma
on account of
multiple triggers for the company (MK-3222 Phase-3 data, Gleevec launch,
RBXY integration benefits), superior execution track record, high RoIC (30%)
and cash-rich balance sheet (net cash of USD1.2b).
Kumar Saurabh
(Kumar.Saurabh@MotilalOswal.com); +91 22 3982 5584
Amey Chalke
(Amey.Chalke@MotilalOswal.com); +91 22 39825423
Investors are advised to refer through important disclosures made at the last page of the Research Report.
Motilal Oswal research is available on www.motilaloswal.com/Institutional-Equities, Bloomberg, Thomson Reuters, Factset and S&P Capital.

Sun Pharma
Gleevec to boost 4Q profits
In 4Q, Sun Pharmaceuticals (SUNP) is likely to register 26%YoY growth in revenues on
the back of gGleevec sales under 180 days exclusivity.
India business is expected to grow 14% YoY to INR17.9b and US business to report 37%
jump in revenues with USD150m of gGleevec sales during this quarter.
We expect margins to improve at 32.5% in 4QFY16 v/s 15% in 4QFY15 (included one of
cost related Ranbaxy merger). Overall EBITDA to double at INR 25.1b over a low base.
Total reported PAT is also expected double at INR17.6b, compared to INR8.9b in
4QFY15 and INR14b in 3QFY16.
Exhibit 1: Sun Pharma has achieved 5% market share in Gleevec
SUN PHARMA GLOB
100%
80%
60%
40%
20%
0%
NOVARTIS
51%
Source: Bloomberg, MOSL
Quarterly Performance (Consolidated)
Y/E March
1Q
63,412
82.1
19,381
30.6
2,354
330
17,357
2,378
14,979
2,063
11.9
FY15
2Q
80,394
91.8
30,662
38.1
2,691
-1,926
26,045
0
26,045
2,794
10.7
3Q
69,295
61.7
21,646
31.2
2,283
-2,262
17,100
0
17,100
10,290
60.2
4Q
61,571
52.3
8,924
14.5
5,619
2,589
5,894
0
5,894
-5,999
-101.8
1Q
67,576
6.6
18,497
27.4
2,401
-176
15,920
6,852
9,068
2,268
14.2
FY16
2Q
68,376
-14.9
19,337
28.3
2,711
430
17,055
0
17,055
3,355
19.7
3Q
70,821
2.2
21,690
30.6
2,508
1,022
20,205
0
20,205
2,020
10.0
4QE
77,553
26.0
25,113
32.4
3,130
1,224
23,207
0
23,207
4,246
18.3
18,961
1,389
17,572
97.9
(INR million)
FY15
274,334
70.6
78,667
28.7
11,947
-313
66,407
2,378
64,029
9,147
13.8
54,882
9,488
45,394
44.5
FY16E
285,453
4.1
84,954
29.8
10,750
2,500
76,704
6,852
69,853
11,889
15.5
57,964
10,049
47,915
5.6
Net Revenues
YoY Change (%)
EBITDA
Margins (%)
Depreciation
Net Other Income
PBT before EO Exp
EO Exp/(Inc)
PBT
Tax
Rate (%)
PAT (pre Minority
Interest)
12,916
23,252
6,810
11,893
6,800
13,700
18,185
Minority Interest
871
2,749
2,856
3,012
2,007
2,633
4,019
Reported PAT
12,046
20,502
3,954
8,881
4,793
11,067
14,166
YoY Change (%)
-194.4
50.5
-74.2
-44.0
-60.2
-46.0
258.3
E: MOSL Estimates; * Quarterly no. don’t match with annual no. because of reinstatement of financials
2 May 2016
2

Sun Pharma
Specialty pharma focus sets SUNP apart from peers
SUNP is well poised to become a significant player in the specialty pharma space over
the next few years.
In-licensing of MK-3222 (Phase-3 biologics) and acquisition of InSite demonstrate that
SUNP transitioning into a specialty pharma company.
Specialty pharma business is growing at almost double the pace of generics business
in the US (grew at ~25% v/s 12% growth for generics over the last one year). Given
that generics growth is expected to fall going forward (due to new competition and
fewer big products going off patent), companies with focus on specialty business will
continue to deliver robust growth.
Exhibit 2: Specialty pharma growth far ahead of traditional routes (US region)
% YoY Growth
25
14
12
12
Total market
Brands
Generics
Specialty
Source: Company, MOSL
SUNP is well poised to become a significant player in the specialty pharma space
over the next few years. The company has already established itself in the complex
generic space, having presence in almost all types of difficult-to-make product
technologies. Also, due to a series of acquisitions (products/companies), tie-ups and
development of own specialty product pipeline, the company has created an
interesting portfolio mix in the specialty segment—some of these products have
already been launched in the market and are likely to drive SUNP’s earnings in
medium to long term. We expect the share of revenue and earnings from
novel/proprietary products to increase meaningfully over the next 3-5 years.
2 May 2016
3

Sun Pharma
Exhibit 3: Sun pharma present in almost all types of complex generics
SUNP
Respiratory
Dermatologicals
Complex injectables
Ophthalmics
Transdermals
Injectables
Control substances
Modified release
IR tabs
Traditional generics
In market
In market
In market
In market
In market
In pipeline
In pipeline
In market
In market
In market
In market
In market
In market
LPC
In pipeline
In market
In pipeline
In market
In pipeline
In market
In pipeline
In market
In market
In market
In pipeline
In market
In market
In market
In market
In pipeline
In market
In pipeline
In market
In market
In market
In market
In market
In market
In market
In market
In market
In market
DRRD
GNP
In pipeline
In market
In pipeline
In pipeline
In market
In pipeline
CDH
ARBP
Source: Company, MOSL
In-licensing of MK-3222 (Phase-3 biologics) and acquisition of InSite (niche specialty
pharma company focused on ophthalmics) demonstrate that SUNP is already strides
to transition itself into a specialty pharma company. Net cash balance sheet of
USD1.2b, annual FCF generation of USD1b and track record of developing complex
generics makes SUNP the best play on specialty pharma business in India.
Exhibit 4: Strong specialty segment pipeline
Specialty products
In market
Absorica
Ximino
Levulan
Azasite
Besivance
In pipeline
MK-3222
Xelpros
Elepsia XR
Bromsite
Dexasite
Azasite plus
Company
Ranbaxy
Ranbaxy
Dusa
In-site
In-site
Therapy
Derma
Derma
Derma
Ophthalmic
Ophthalmic
Merck
SPARC
SPARC
In-site
In-site
In-site
Psoriasis
Ophthalmic
CNS
Ophthalmic
Ophthalmic
Ophthalmic
MK-3222:
Tidrakizumab is likely to be the first NCE candidate from India for
regulated markets. Under the licensing agreement with Merck for this drug, Sun has
the worldwide rights to commercialize the drug for all indications.
Tildrakizumab is a monoclonal antibody for the treatment of immunologically
mediated inflammatory disorders. It was designed to block interleukin-23, a
cytokine that plays an important role in managing the immune system and
autoimmune diseases. It is currently being evaluated in Phase-3 registration trials
for the treatment of chronic plaque psoriasis, a skin ailment.
Time lines:
SUNP expects to receive data points for Phase-3 clinical studies by the
end of May’16 and is expected to file an NDA in the US by CY17. If everything goes
well, the product can be launched in the market by FY19.
2 May 2016
4

Sun Pharma
Competition scenario:
The psoriasis biologics drug market can be divided into two
categories: Anti-TNFs and IL-based biologics. In 2014, anti-TNFs (Enbrel, Humira and
Remicade) together accounted for over 69% or USD2.9b of sales while IL-based
biologics (mainly Stelara) contributed the other 31% or USD1.4b of sales.
In the last few years, IL-based biologics have rapidly gained market share from anti-
TNFs. Moreover, the majority of the innovators are focusing on developing IL-based
biologics. Currently, five of the six biologics in Phase-III development are IL based.
Stelara, launched in 2009, has been successful in gaining market share because of
its favorable administration regime and sizeable proportion of patients who do not
respond to TNF blockers. Currently, it has become a USD2.4b drug for J&J and has
been growing at 12-13% CAGR.
Exhibit 5: Existing products for psoriasis
Brand
Stelara
Enbrel
Humira
Remicade
Simponi
Mechanism
IL-12/23
TNF
TNF
TNF
TNF
Company
J&J
Amgen
Abbott
J&J
J&J
Market Size (USD m)
2,500
8,710
11,840
8,100
1,500
Exhibit 6: IL-based biologics under development
Pathway
IL 17
IL 17
IL 23
IL 23
IL 23
Name
Brodalumab
Ixekizumab
Tidrakizumab
BI 655066
Guselkumab
Status
Phase III
Phase II
Phase III
Phase II
Phase II
Innovator
Astrazeneca
Eli Lilly
Sun/Merck
Boehringer Ingelheim
J&J
InSite acquisition
In 1HFY16, SUNP acquired US-based ophthalmic specialty company InSite Vision for
USD48m. The acquisition would strengthen Sun Pharma’s branded ophthalmic
presence in the US.
Over the years, InSite has developed in-house drug delivery platforms DuraSite and
DuraSite2—which are capable of extending the duration of drug retention, thereby
resulting in lower dosing frequency and potentially enhanced efficacy.
The company has also launched three products (through partners) and two more
are in late-stage clinical programs. However, overall sales are still minuscule and
expected to ramp up going forward with greater traction in launched products and
new launches.
Exhibit 7: InSite- rich mix of branded ophthalmic products
Brand
Azasite 1%
Besivance 0.6%
Bromsite
Dexasite
Azasite Plus
ISV-101
Molecule
Azithromycin soln
Besifloxacin soln
Bromfenac
Dexamethasone
Azithromycin soln
N/A
Status
Launched
Launched
Launched
To be filed in CY17
Clinical trial PIII
Clinical trial PI/II
2 May 2016
5

Sun Pharma
Halol warning letter: Early resolution critical
Expect resolution by 2HFY17
Though Halol received warning letter in Dec-15, it was already under quasi
warning letter state as it received zero approvals over the last 15 months (since
USFDA inspection in Sep-14). Though SUNP will have to augment corrective
measures to convince USFDA, we believe remedial measures taken over last few
months will expedite the resolution process. Management remains focused on
resolving issues at this facility instead of looking for site transfers for key
products.
Notably, the warning letter highlighted fewer observations than form 483
(validating that the remediation plan is working to some extent). Having said
that, since the facility has got Official Action Indicated (OAI) status, a re-
inspection will be required—which could lead to some delay before it gets
cleared by USFDA. Accordingly, we have built warning letter resolution at Halol
by 2HFY17.
Sun Pharma's Halol facility received multiple Form 483 observations from USFDA
post an inspection in September 2014. The inspection covered the Injectables
and oral solids units as well as the Quality Control (QC) laboratory at the site.
The injectables unit received 10 observations, oral solids unit four and QC lab
nine. The inspection was classified as OAI, indicating that significant
objectionable conditions or practices were found and regulatory action is
warranted to address the facility's lack of compliance.
Since the inspection, USFDA has not approved any product from this facility.
However, SPARC received one NDA approval in April’15; but was rescinded in
Aug’15.
We believe Halol is an important facility for Sun Pharma and continues to
contribute significant portion of revenue to the US business. Doxil, one of the
largest products for SUNP, can be made only at this facility. Overall, we estimate
Halol facility is generating 7-8% of total sales.
Date of
9/5/2014
12/6/2014
9/16/2014
3/6/2015
1/31/2015
11/27/2014
2/3/2011
11/12/2008
2/12/2008
3/7/2008
6/27/2013
11/16/2013
4/28/2010
7/31/2013
3/22/2013
9/24/2010
12/22/2010
Date of letter Time Gap (days) Resolution Time Gap (days)
12/23/2015
474
Not closed
12/23/2015
382
Not closed
12/17/2015
457
Not closed
11/15/2015
254
Not closed
11/15/2015
288
Not closed
11/15/2015
353
Not closed
6/21/2011
138
7/11/2012
386
5/7/2009
176
1/20/2010
258
9/16/2008
217
Not closed
9/16/2008
193
Not closed
9/9/2013
74
Not closed
5/7/2014
172
Not closed
8/25/2010
119
9/19/2011
390
11/25/2013
117
Not closed
7/18/2013
118
Not closed
5/20/2011
238
Not closed
5/20/2011
149
6/4/2012
381
Source: Company, MOSL
Form 483 observations at Halol: Key facts
Exhibit 8: Past warning letters to Indian companies
Company
Cadila Healthcare
Cadila Healthcare
Sun Pharma
Dr. Reddy's
Dr. Reddy's
Dr. Reddy's
Cadila Healthcare
Lupin
Ranbaxy
Ranbaxy
Strides
Sun Pharma
Sun Pharma
Wockhardt
Wockhardt
Aurobindo
Aurobindo
Facility
Moraiya
Ahmedabad
Halol
Duvvada
Miryalguda
Srikakulam
Moraiya
Mandideep
Dewas
Paonta Sahib
Agila
Karkhadi
Cranbury
Chikalthana
Waluj
Unit III
Unit VI
Issue
Warning Letter
Warning Letter
Warning Letter
Warning Letter
Warning Letter
Warning Letter
Warning Letter
Warning Letter
Warning Letter
Warning Letter
Warning Letter
Warning Letter
Warning Letter
Warning Letter
Warning Letter
Warning Letter
Warning Letter
2 May 2016
6

Sun Pharma
Valuation and view
SUNP has historically commanded 20-25% premium to Indian pharma peers. The
stock is currently trading at 28x FY17E and 21x FY18E P/E, which does not fully value
its rich US pipeline and stable, cash-generating domestic business. Consistent
outperformance in the domestic market, with market share gains and high
profitability, reflects management’s execution capability (and product selection
skills). Identification of value-accretive assets and integrating them successfully has
been one of the cornerstones of SUNP’s success.
We believe that the valuation premium is likely to be maintained on the back of:
High earnings visibility on a favorable base (forecast EPS CAGR of 26% over
FY15-18).
Sustained improvement in ROE, implying high capital efficiency. We expect ROE
to expand from 21% in FY15 to 25% by FY18.
Strong cash generation and healthy balance sheet. We expect SUNP to generate
INR254b free cash flows over FY16-18 and its cash surplus to reach INR250b+
(~50% of capital employed)
We assign a target P/E of 25x (~10% discount to historical average) to SUNP’s
base business EPS for FY18 and arrive at a target price of INR975, implying 20%
upside from current levels. Our target multiple is:
At 10% discount to historical average P/E band (one-year forward).
At 10% premium to average target P/E for peers, in line with the past average.
20% discount to the current trading multiple (FY16E P/E).
Our target price implies 20% upside
Key catalysts going forward
We have not factored any potential acquisition that SUNP can execute (net cash
surplus) as well as positive development of its novel molecule (Tildrakizumab,
in-licensed from Merck).
Execution of RBXY integration would be a key catalyst to watch out in future.
Higher-than-expected upside from niche molecules in the US (gGleevec, Ximino,
InSite products).
Risks to our thesis
Currency volatility:
SUNP derives more than 75% of its revenue (and profits)
from overseas business (largely the US) and, hence, is affected by currency
fluctuations at an operational level. As a prudent measure, though, the company
has hedged ~50% of its net exposure to the USD through forward covers (<12
months duration) in the past. Thus a reversal in the current trend (i.e., INR
appreciation) poses downside risk to forecasts.
Increased competition in niche products:
Taro accounts for 17% of SUNP’s
business and is currently benefitting from lack of enough competition in the US
derma market (and price hikes). We do not expect any new entrant for 4-5 years
at least due to developmental timeline, etc. However, a re-entry of some of the
approved players (2-3) could pose a risk to pricing in the US derma market—
thereby hurting SUNP (Taro).
2 May 2016
7

Sun Pharma
Exhibit 9: SUNP trades at 31x
60
48
36
24
12
Apr-11
24.7
15.7
Feb-12
Dec-12
Oct-13
Aug-14
Jun-15
Apr-16
PE (x)
Peak(x)
Avg(x)
Min(x)
51.4
2 May 2016
8

Sun Pharma
Story in charts – US segment
Exhibit 10: Revenue to grow at 8% CAGR over FY15-18E
US Sales (USD m)
110.8
47.5
55.0
Growth YoY (%)
Exhibit 11: US sales per product improving with better mix
Revenues (USD m)
Rev per product (USDm/product)
9.9
42.9
39.3
2167
-3.6
19.1
-2.4
2518
2.3
234
FY09
2.8
494
FY10
3.8
729
FY11
5.2
1,130
FY12
7.1
494
FY11
729
FY12
1130
FY13
1615
FY14
2249
FY15
2581
1,615
FY13
2,249
FY14
FY16E FY17E FY18E
Exhibit 12: ANDAs Filed and Approved
ANDA filed
ANDA pending
597
377
207
123
152
397
147
449
478
599
Exhibit 13: 445 ANDA Approvals by Therapeutic Area
106
98
61
40
34
30
20
13
13
30
138
134
158
154
FY10
FY11
FY12
FY13
FY14
FY15
YTD
Exhibit 14: Pending ANDA approvals
269
220
168 165 159 160 154
120 120
98
87
Exhibit 15:
30
25
62
68
ANDA approvals per year
27
20
22
14
8
Exhibit 16: US sales break-up (FY15)
Others, 9.5
Exhibit 1: US sales break-up (FY18)
Others,
11.8
Sun
Pharma,
23.6
Ranbaxy,
27.6
Taro, 39.4
Sun
Pharma,
29.5
Taro, 40.7
Ranbaxy,
18.0
Source: Company, MOSL
Source: Company, MOSL
2 May 2016
9

Sun Pharma
Story in Charts
Exhibit 17: Revenue to grow at 10% CAGR
Formulations (INR b)
API (INR b)
16
34
Exhibit 18: EBITDA margins to jump to 35%
EBITDA (INR b)
40
44
44
29
30
34
36
EBITDA Margin (%)
11
8
106
8
154
265
14
14
29
6
34
5
53
6
75
272
324
349
12
20
32
49
69
77
82
112
129
FY10 FY11 FY12 FY13 FY14 FY15 FY16E FY17E FY18E
FY10 FY11 FY12 FY13 FY14 FY15 FY16E FY17E FY18E
Exhibit 19: Ranbaxy synergies to drive margins
Gross Margin (%)
76.0
80.8
81.5
82.6
EBITDA Margin (%)
75.3
76.2
77.2
78.0
Exhibit 20: R&D expense to increase to 9% of sales
R&D expense (INR b)
6
7
% of sales
8
8
9
72.6
5
34
34
40
43
43
28
28
33
35
2
FY10
FY11
FY12
FY13
FY14
FY15 FY16E FY17E FY18E
FY10
5
5
5
3
FY11
4
FY12
6
FY13
10
FY14
18
21
27
31
FY15 FY16E FY17E FY18E
Exhibit 21: Cash rich balance sheet
Cash and Equivalents (INR b)
0.34
0.26
0.15
0.04
22
FY11
34
0.02
FY12
41
0.02
FY13
76
FY14
110
144
0.16
0.09
193
267
D/E (x)
Exhibit 22: Fixed asset turnover (x)
Gross block addition (INR b)
Fixed asset turnover (x)
2.5
1.9
2
18
2.0
1.7
7
9
8
2.1
66
2.0
12
2.2
2.2
12
12
FY15 FY16E FY17E FY18E
FY10 FY11 FY12 FY13 FY14 FY15 FY16E FY17E FY18E
Exhibit 23: EPS to grow at 26%CAGR
Exhibit 24: Leading return ratios
RoE (%)
30.4
23.6
21.0
24.0
25.6
31.5
RoCE (%)
30.0
21.5
25.7
21.8
17.5
21.7
24.0
30.8
25.6
31.5
6
8
11
12
13
19
20
33
39
FY11
FY12
FY13
FY14
FY15
FY16E FY17E FY18E
Source: Company, MOSL
FY10 FY11 FY12 FY13 FY14 FY15 FY16E FY17E FY18E
Source: Company, MOSL
2 May 2016
10

Sun Pharma
Financials and Valuations
Income Statement
Y/E Mar
Net Sales
Change (%)
EBITDA
EBITDA Margin (%)
Depreciation
EBIT
Interest
Other Income
Extraordinary items
PBT
Tax
Tax Rate (%)
Min. Int. & Assoc. Share
Reported PAT
Adjusted PAT
Change (%)
2011
57,214
50.2
19,566
34.2
2,049
17,518
739
3,611
-32
20,357
1,286
6.3
913
18,158
18,186
34.6
2012
80,098
40.0
31,947
39.9
2,912
29,035
282
4,856
-11
33,598
3,826
11.4
3,855
25,917
25,926
42.6
2013
112,388
40.3
49,063
43.7
3,362
45,701
443
3,727
-5,836
43,148
8,456
19.6
4,863
29,830
34,791
34.2
2014
160,044
42.4
69,257
43.3
4,092
65,165
442
6,282
-25,174
45,831
7,022
15.3
7,375
31,434
52,813
51.8
2015
272,865
70.5
77,198
28.3
11,947
65,250
5,790
6,946
-2,378
64,029
9,147
14.3
9,488
45,394
47,415
-10.2
2016E
282,997
3.7
82,499
29.2
10,750
71,749
5,000
9,956
-6,852
69,853
11,889
17.0
10,049
47,915
47,825
0.9
2017E
335,951
18.7
111,846
33.3
11,750
100,096
3,000
13,000
0
110,096
19,707
17.9
10,850
79,539
69,596
45.5
(INR Million)
2018E
361,590
7.6
128,913
35.7
12,500
116,413
1,000
16,500
0
131,913
25,789
19.6
12,300
93,824
93,824
34.8
Balance Sheet
Y/E Mar
Share Capital
Reserves
Net Worth
Debt
Deferred Tax
Total Capital Employed
Gross Fixed Assets
Less: Acc Depreciation
Net Fixed Assets
Capital WIP
Investments
Current Assets
Inventory
Debtors
Cash & Bank
Loans & Adv, Others
Curr Liabs & Provns
Curr. Liabilities
Provisions
Net Current Assets
Total Assets
2011
1,036
93,798
94,833
3,717
-3,652
103,370
39,128
16,794
22,334
2,355
22,297
61,146
14,895
11,049
22,046
13,156
15,361
10,078
5,283
45,785
103,371
2012
1,036
120,628
121,663
2,739
-5,199
130,820
46,542
20,406
26,136
3,447
22,129
90,681
20,870
19,261
33,672
16,878
24,950
14,410
10,541
65,730
130,820
2013
1,036
148,862
149,897
2,072
-7,122
161,197
56,026
24,421
31,604
5,626
24,116
113,420
25,778
27,108
40,587
19,948
38,439
15,752
22,687
74,981
161,198
2014
2,071
183,178
185,249
24,982
-9,110
220,333
63,886
28,904
34,982
8,415
27,860
177,393
31,230
22,004
75,902
48,257
61,509
15,887
45,622
115,884
220,333
2015
2,406
253,826
256,232
77,827
-17,516
345,203
130,369
60,617
69,752
20,386
27,163
297,403
56,680
53,123
109,980
77,619
126,574
59,198
67,376
170,828
345,203
2016E
2,406
286,916
289,322
64,585
-17,516
375,100
142,369
69,301
73,068
22,425
27,163
333,260
56,272
52,398
144,293
80,297
137,890
60,407
77,483
195,370
375,099
(INR Million)
2017E
2,406
349,565
351,971
47,308
-17,516
431,322
154,369
79,335
75,034
24,667
27,163
403,773
62,678
57,405
192,981
90,709
156,389
67,284
89,105
247,384
431,321
2018E
2,406
426,499
428,905
34,795
-17,516
508,043
166,369
90,149
76,220
27,134
27,163
492,801
65,095
61,930
267,176
98,599
172,349
69,878
102,471
320,452
508,042
2 May 2016
11

Sun Pharma
Financials and Valuations
Ratios
Y/E Mar
Basic (INR)
EPS
Cash EPS
Book Value
DPS
Payout (incl. Div. Tax.)
Valuation(x)
P/E
Cash P/E
Price / Book Value
EV/Sales
EV/EBITDA
Dividend Yield (%)
Profitability Ratios (%)
RoE
RoCE
Turnover Ratios (%)
Asset Turnover (x)
Debtors (No. of Days)
Inventory (No. of Days)
Creditors (No. of Days)
Leverage Ratios (%)
Net Debt/Equity (x)
-0.2
-0.2
-0.2
-0.2
-0.1
-0.2
-0.4
-0.5
0.6
70
95
98
0.7
88
95
109
0.8
88
84
91
0.8
50
71
64
1.0
71
76
110
0.8
68
73
110
0.8
62
68
110
0.8
63
66
110
21.0
23.6
24.0
30.4
25.6
31.5
31.5
25.6
21.5
25.7
17.5
21.8
21.7
30.0
24.0
30.8
38.6
57.4
11.0
12.3
28.3
0.3
43.0
35.6
8.0
7.3
25.7
0.5
42.7
34.8
7.1
6.8
23.4
0.6
29.3
22.3
5.8
5.6
16.7
0.7
21.7
19.2
4.8
4.9
13.8
0.7
7.6
8.4
39.4
1.5
22.1
10.8
12.0
50.6
1.8
17.2
14.5
13.8
62.3
2.2
17.5
22.0
14.8
77.0
2.6
18.7
19.7
23.8
106.5
4.3
21.8
19.9
24.4
120.3
5.0
24.3
28.9
37.9
146.3
6.0
18.7
39.0
44.2
178.3
6.0
15.9
2011
2012
2013
2014
2015
2016E
2017E
2018E
Cash Flow Statement
Y/E Mar
Adjusted EBITDA
Non cash opr. exp (inc)
(Inc)/Dec in Wkg. Cap.
Tax Paid
Other operating activities
CF from Op. Activity
(Inc)/Dec in FA & CWIP
Free cash flows
(Pur)/Sale of Invt
Others
CF from Inv. Activity
Inc/(Dec) in Net Worth
Inc / (Dec) in Debt
Interest Paid
Divd Paid (incl Tax) & Others
CF from Fin. Activity
Inc/(Dec) in Cash
Add: Opening Balance
Closing Balance
2011
19,566
3,578
-286
-4,048
0
18,811
-16,500
2,311
9,367
0
-7,134
8,225
2,006
-739
-4,213
5,280
16,957
5,089
22,046
2012
31,947
4,845
-8,319
-5,373
0
23,099
-10,585
12,515
169
0
-10,416
5,318
-978
-282
-5,115
-1,058
11,626
22,046
33,672
2013
49,063
-2,109
-2,336
-10,379
0
34,239
-22,501
11,737
-1,987
0
-24,488
4,334
-668
-443
-6,058
-2,835
6,915
33,672
40,587
2014
69,257
-18,892
-5,589
-9,010
0
35,767
-18,580
17,187
-3,745
0
-22,324
6,674
22,910
-442
-7,270
21,872
35,315
40,587
75,902
2015
77,198
4,569
-20,865
-17,553
0
43,348
-82,570
-39,223
698
0
-81,872
37,513
52,845
-5,790
-11,964
72,605
34,080
75,902
109,982
2016E
82,499
3,104
9,770
-11,889
0
83,484
-16,104
67,380
0
0
-16,104
-750
-13,242
-5,000
-14,075
-33,067
34,313
109,980
144,293
2017E
111,846
13,000
-3,326
-19,707
0
101,813
-15,958
85,854
0
0
-15,958
0
-17,276
-3,000
-16,890
-37,166
48,688
144,293
192,981
(INR Million)
2018E
128,913
16,500
1,128
-25,789
0
120,751
-16,153
104,599
0
0
-16,153
0
-12,513
-1,000
-16,890
-30,403
74,196
192,981
267,176
2 May 2016
12

Sun Pharma
NOTES
2 May 2016
13

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14