InCred Equities - Sun Pharmaceutical Industries

	Mar-23A	Mar-24A	Mar-25F	Mar-26F
Revenue (Rsm)	438,857	484,969	519,817	574,620
Operating EBITDA (Rsm)	117,729	129,870	143,293	167,080
Net Profit (Rsm)	84,736	95,764	111,422	132,309
Core EPS (Rs)	36.0	42.0	46.4	55.1
Core EPS Growth	11.4%	16.5%	10.6%	18.7%
FD Core P/E (x)	49.33	42.34	38.27	32.23
DPS (Rs)	11.5	11.5	11.5	11.5
Dividend Yield	0.65%	0.65%	0.65%	0.65%
EV/EBITDA (x)	35.71	31.81	28.45	23.86
P/FCFE (x)	50.59	22.97	31.13	19.30
Net Gearing	(15.2%)	(24.3%)	(28.9%)	(35.7%)
P/BV (x)	7.62	6.70	5.92	5.17
ROE	16.6%	16.8%	16.4%	17.1%
% 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	519,817	574,620
Gross Profit	332,235	378,342	410,655	456,823
Operating EBITDA	117,729	129,870	143,293	167,080
Depreciation And Amortisation	(25,294)	(25,566)	(26,500)	(28,000)
Operating EBIT	92,435	104,304	116,793	139,080
Financial Income/(Expense)	(1,720)	(2,385)	(2,000)	(2,000)
Pretax Income/(Loss) from Assoc.
Non-Operating Income/(Expense)	5,084	13,903	15,000	17,000
Profit Before Tax (pre-EI)	95,799	115,822	129,793	154,080
Exceptional Items
Pre-tax Profit	95,799	115,822	129,793	154,080
Taxation	(8,476)	(14,395)	(18,171)	(21,571)
Exceptional Income - post-tax	(1,715)	(4,943)
Profit After Tax	85,608	96,484	111,622	132,509
Minority Interests	(873)	(721)	(200)	(200)
Preferred Dividends
FX Gain/(Loss) - post tax
Other Adjustments - post-tax
Net Profit	84,736	95,764	111,422	132,309
Recurring Net Profit	86,450	100,707	111,422	132,309
Fully Diluted Recurring Net Profit	86,450	100,707	111,422	132,309

(Rs mn)	Mar-23A	Mar-24A	Mar-25F	Mar-26F
EBITDA	117,729	129,870	143,293	167,080
Cash Flow from Invt. & Assoc.
Change In Working Capital	(56,618)	10,621	(40,363)	(27,644)
(Incr)/Decr in Total Provisions
Other Non-Cash (Income)/Expense
Other Operating Cashflow	64,480	149,451	117,930	156,437
Net Interest (Paid)/Received	(1,720)	(2,385)	(2,000)	(2,000)
Tax Paid	(13,167)	(25,717)	(31,371)	(36,771)
Cashflow From Operations	49,593	121,350	84,559	117,666
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	69,559	101,666
Debt Raised/(repaid)	52,602	(33,899)	(17,134)	1,571
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	13,000	15,000
Cash Flow From Financing	41,380	(58,347)	(31,726)	(11,022)
Total Cash Generated	23,470	39,860	37,833	90,644
Free Cashflow To Equity	84,284	185,657	136,985	220,902
Free Cashflow To Firm	33,403	221,941	156,118	221,331

(Rs mn)	Mar-23A	Mar-24A	Mar-25F	Mar-26F
Total Cash And Equivalents	151,842	191,702	229,536	320,180
Total Debtors	114,385	112,494	140,351	155,147
Inventories	105,131	98,683	124,756	143,655
Total Other Current Assets	27,476	31,871	33,788	40,223
Total Current Assets	398,833	434,750	528,430	659,205
Fixed Assets	113,537	113,001	101,501	89,501
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	408,379	396,379
Short-term Debt	61,979	28,444	28,444	28,444
Current Portion of Long-Term Debt
Total Creditors	56,815	56,533	60,340	65,143
Other Current Liabilities	80,276	84,867	96,544	104,229
Total Current Liabilities	199,070	169,844	185,328	197,816
Total Long-term Debt		13	(17,120)	(15,550)
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	(3,408)	(1,838)
Total Provisions
Total Liabilities	214,281	183,569	181,920	195,978
Shareholders Equity	559,954	636,668	720,297	824,814
Minority Interests	33,201	34,392	34,592	34,792
Total Equity	593,155	671,060	754,890	859,606

	Mar-23A	Mar-24A	Mar-25F	Mar-26F
Revenue Growth	13.5%	10.5%	7.2%	10.5%
Operating EBITDA Growth	14.9%	10.3%	10.3%	16.6%
Operating EBITDA Margin	26.8%	26.8%	27.6%	29.1%
Net Cash Per Share (Rs)	37.45	68.04	90.95	128.07
BVPS (Rs)	233.38	265.35	300.21	343.77
Gross Interest Cover	53.74	43.74	58.40	69.54
Effective Tax Rate	8.8%	12.4%	14.0%	14.0%
Net Dividend Payout Ratio
Accounts Receivables Days	91.62	85.38	88.77	93.85
Inventory Days	333.94	348.84	373.55	415.84
Accounts Payables Days	173.92	194.01	195.39	194.41
ROIC (%)	13.4%	15.1%	16.0%	18.5%
ROCE (%)	15.7%	15.4%	15.9%	17.0%
Return On Average Assets	11.8%	12.4%	12.6%	13.5%

(91) 22 4161 1552 praful.bohra@incredresearch.com

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

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Market Data

Source: Bloomberg