The Indian pharmaceutical industry is a global leader, ranking third in volume and 14th in value, with a market size of over $50 billion. Known as the “pharmacy of the world,” it supplies 20% of global generic medicines and is a key player in vaccines, exporting to over 200 countries. The industry is driven by strong R&D, cost-effective manufacturing, and a skilled workforce.
Companies like Sun Pharma, Dr. Reddy’s, Cipla, and Granules India lead the sector. With increasing healthcare spending, rising chronic diseases, and export demand, India’s pharma industry has immense growth potential, especially in biotechnology, biosimilars, and innovative drug development.
Share Price
The shares of Sun Pharmaceuticals Limited are currently trading at Rs. 1,769 up by 1.72% from its previous close of Rs. 1,739.1 as of February 01, 2025. The stock also has given a return of 25.64% in 1 year.
India: The CDMO Capital of the World
India is known as the “CDMO (Contract Development and Manufacturing Organization) capital of the world,” dominating the global pharmaceutical outsourcing market. Indian companies provide end-to-end solutions, including drug development, manufacturing, and packaging, to major global pharma players.
The country’s competitive pricing, skilled workforce, and regulatory expertise make it the preferred hub for outsourced pharmaceutical services. Prominent CDMOs like Lonza, Cipla, Sun Pharma, Dr Reddy, and Biocon contribute significantly to India’s position as a leading provider of contract services.
India’s Push for Self-Reliance in API Manufacturing
India’s pharmaceutical industry heavily relies on Active Pharmaceutical Ingredients (APIs), with China being a major supplier. However, India is now prioritizing self-reliance in API production to reduce this dependency.
By boosting domestic manufacturing capabilities and creating more robust supply chains, India aims to safeguard its pharmaceutical sector and reduce vulnerability to geopolitical risks. This push for self-reliance is critical in ensuring a consistent supply of high-quality medicines both domestically and globally.
Q3 Results
Sun Pharmaceuticals Industries Ltd. has shown strong growth in its financial performance for the period ending December 2024. Sales increased by ₹1,294 crore, growing 10.47% from ₹12,381 crore in December 2023 to ₹13,675 crore in December 2024.
EBITDA also demonstrated a solid rise of ₹532 crore, reflecting a 15.3% growth, from ₹3,477 crore to ₹4,009 crore. The company’s Operating Profit Margin (OPM) improved from 28% to 29%, marking a 3.57% increase in operational efficiency. Net profit grew by ₹352 crore, a 13.74% rise, from ₹2,561 crore to ₹2,913 crore.
Additionally, earnings per share (EPS) increased by ₹1.58, or 15%, from ₹10.52 in December 2023 to ₹12.10 in December 2024, reflecting enhanced profitability and operational effectiveness. These results highlight Sun Pharma’s ability to drive sustained growth, demonstrating its strong position in the pharmaceutical sector with a focus on improving profitability and shareholder value.
Announced Interim Dividend
Sun Pharmaceutical Industries Ltd. has declared an interim dividend of ₹10.50 per equity share (face value ₹1 each) for the financial year 2024-25. As announced on January 16, 2025, the Record Date for determining entitlement to the interim dividend is February 6, 2025.
The interim dividend will be paid to eligible shareholders on or before February 20, 2025. This payout highlights the company’s commitment to rewarding its shareholders while maintaining strong financial performance.
Written By: Dipangshu Kundu
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