InCred Equities - Sun Pharmaceutical Industries

	Mar-23A	Mar-24A	Mar-25F	Mar-26F
Revenue (Rsm)	438,857	484,969	528,203	579,892
Operating EBITDA (Rsm)	117,729	129,870	152,595	164,967
Net Profit (Rsm)	84,736	95,764	117,718	128,622
Core EPS (Rs)	36.0	42.0	49.1	53.6
Core EPS Growth	11.4%	16.5%	16.9%	9.3%
FD Core P/E (x)	47.56	40.83	34.93	31.97
DPS (Rs)	11.5	11.5	11.5	11.5
Dividend Yield	0.67%	0.67%	0.67%	0.67%
EV/EBITDA (x)	34.41	30.63	25.71	23.25
P/FCFE (x)	48.78	22.15	30.00	18.73
Net Gearing	(15.2%)	(24.3%)	(28.7%)	(35.6%)
P/BV (x)	7.34	6.46	5.66	4.97
ROE	16.6%	16.8%	17.3%	16.6%
% Change In Core EPS Estimates
InCred Research/Consensus EPS (x)

(Rs mn)	Mar-23A	Mar-24A	Mar-25F	Mar-26F
Total Net Revenues	438,857	484,969	528,203	579,892
Gross Profit	332,235	378,342	419,922	461,014
Operating EBITDA	117,729	129,870	152,595	164,967
Depreciation And Amortisation	(25,294)	(25,566)	(25,400)	(28,000)
Operating EBIT	92,435	104,304	127,195	136,967
Financial Income/(Expense)	(1,720)	(2,385)	(2,400)	(2,000)
Pretax Income/(Loss) from Assoc.
Non-Operating Income/(Expense)	5,084	13,903	16,000	17,000
Profit Before Tax (pre-EI)	95,799	115,822	140,795	151,967
Exceptional Items
Pre-tax Profit	95,799	115,822	140,795	151,967
Taxation	(8,476)	(14,395)	(22,527)	(22,795)
Exceptional Income - post-tax	(1,715)	(4,943)
Profit After Tax	85,608	96,484	118,268	129,172
Minority Interests	(873)	(721)	(550)	(550)
Preferred Dividends
FX Gain/(Loss) - post tax
Other Adjustments - post-tax
Net Profit	84,736	95,764	117,718	128,622
Recurring Net Profit	86,450	100,707	117,718	128,622
Fully Diluted Recurring Net Profit	86,450	100,707	117,718	128,622

(Rs mn)	Mar-23A	Mar-24A	Mar-25F	Mar-26F
EBITDA	117,729	129,870	152,595	164,967
Cash Flow from Invt. & Assoc.
Change In Working Capital	(56,618)	10,621	(44,962)	(24,594)
(Incr)/Decr in Total Provisions
Other Non-Cash (Income)/Expense
Other Operating Cashflow	64,480	149,451	123,633	157,373
Net Interest (Paid)/Received	(1,720)	(2,385)	(2,400)	(2,000)
Tax Paid	(13,167)	(25,717)	(36,677)	(38,345)
Cashflow From Operations	49,593	121,350	84,556	117,028
Capex	(20,646)	(21,710)	(15,000)	(16,000)
Disposals Of FAs/subsidiaries
Acq. Of Subsidiaries/investments	(46,858)	(1,433)
Other Investing Cashflow
Cash Flow From Investing	(17,911)	98,207	69,556	101,028
Debt Raised/(repaid)	52,602	(33,899)	(17,039)	1,515
Proceeds From Issue Of Shares		(774)
Shares Repurchased
Dividends Paid	(25,197)	(28,982)	(27,592)	(27,592)
Preferred Dividends
Other Financing Cashflow	13,976	5,308	13,600	15,000
Cash Flow From Financing	41,380	(58,347)	(31,031)	(11,077)
Total Cash Generated	23,470	39,860	38,524	89,951
Free Cashflow To Equity	84,284	185,657	137,073	219,572
Free Cashflow To Firm	33,403	221,941	156,512	220,057

(Rs mn)	Mar-23A	Mar-24A	Mar-25F	Mar-26F
Total Cash And Equivalents	151,842	191,702	230,227	320,178
Total Debtors	114,385	112,494	142,615	156,571
Inventories	105,131	98,683	126,769	144,973
Total Other Current Assets	27,476	31,871	34,333	40,592
Total Current Assets	398,833	434,750	533,944	662,315
Fixed Assets	113,537	113,001	102,601	90,601
Total Investments	3,894	4,426	4,426	4,426
Intangible Assets	180,396	172,652	172,652	172,652
Total Other Non-Current Assets	110,776	129,800	129,800	129,800
Total Non-current Assets	408,603	419,879	409,479	397,479
Short-term Debt	61,979	28,444	28,444	28,444
Current Portion of Long-Term Debt
Total Creditors	56,815	56,533	60,426	65,744
Other Current Liabilities	80,276	84,867	96,682	105,190
Total Current Liabilities	199,070	169,844	185,552	199,377
Total Long-term Debt		13	(17,026)	(15,510)
Hybrid Debt - Debt Component
Total Other Non-Current Liabilities	15,211	13,712	13,712	13,712
Total Non-current Liabilities	15,211	13,725	(3,314)	(1,799)
Total Provisions
Total Liabilities	214,281	183,569	182,238	197,579
Shareholders Equity	559,954	636,668	726,243	826,722
Minority Interests	33,201	34,392	34,942	35,492
Total Equity	593,155	671,060	761,185	862,215

	Mar-23A	Mar-24A	Mar-25F	Mar-26F
Revenue Growth	13.5%	10.5%	8.9%	9.8%
Operating EBITDA Growth	14.9%	10.3%	17.5%	8.1%
Operating EBITDA Margin	26.8%	26.8%	28.9%	28.4%
Net Cash Per Share (Rs)	37.45	68.04	91.20	128.05
BVPS (Rs)	233.38	265.35	302.68	344.56
Gross Interest Cover	53.74	43.74	53.00	68.48
Effective Tax Rate	8.8%	12.4%	16.0%	15.0%
Net Dividend Payout Ratio
Accounts Receivables Days	91.62	85.38	88.14	94.16
Inventory Days	333.94	348.84	379.98	417.18
Accounts Payables Days	173.92	194.01	197.13	193.69
ROIC (%)	13.4%	15.1%	17.2%	18.2%
ROCE (%)	15.7%	15.4%	17.3%	16.6%
Return On Average Assets	11.8%	12.4%	13.4%	13.0%

(91) 22 4161 1566 yogesh.soni@incredresearch.com

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Market Data

Source: Bloomberg