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Sun Pharma- An outstanding stock to look out for!




Overview of sun pharma

The 1983-founded multinational pharmaceutical company Sun Pharma operates over 40 production facilities and develops and markets pharmaceutical formulations and active pharmaceutical ingredients (APIs) in more than 100 nations. Its global R&D facilities, as well as a multiracial workforce representing more than 50 different countries.

Sun Pharma is a nifty 50 company and a leading global specialty generic company. Sun Pharma annualized a return of 11.2% on a YoY basis. This return value is good when we consider the return given by the pharma index, which was 6.09% YoY.

Sun Pharma released its Q4 results ending March 2023 on Friday. Let us see what the results say about the company’s performance.

About Sun Pharma

Sun Pharma is a leading manufacturer of generic medicines with a global presence in more than 100 countries. The range of manufactured products includes tablets, capsules, injectables, inhalers, ointments, creams, etc. The business spreads across specialty products, branded generics, and APIs (Active Pharmaceutical ingredients).

What are generic medicines?

Generic medicines are medicines composed of the same active ingredient in any brand-named drugs. Any pharmaceutical business may produce generic versions of a drug after its patent period has passed, increasing competition. Since government drug boards have previously approved these medications, this competition lowers the costs of research and development (R&D). As a result, the availability of numerous manufacturers and lower R&D costs contribute to the affordability and simplicity of generic drug production.

Sun Pharma’s quarterly report

Now let us dive deep into the financial information of SUN Pharma. From the consolidated financial results for the Quarter ending March 31, 2023

Revenue from the operation – There has been a 12.6% increase in Revenue from operations which stood at Rs.384,264.2 Mn in March 2022 against the current Rs.432, 788.7 Mn for the Quarter ending March 23. Total Revenue, which includes other income, also stood at an increase of 12.4%

Net profit of Sun pharma-The net profit of the company jumped a high of 159%, corresponding to PAT, which stood at Rs. 32727 Mn in the year ending March 2022

While seeing the line items of expenses, the Expense on Exceptional items has decreased by 96 %, at Rs.1714 million in the Quarter ending 2023 as against Rs.45668.2 Mn in the Quarter ending 2022.

We can see from the above details that the PAT of the company has increased due to its increase in Revenue from operations and a reduction in Expense of exceptional items, which included (impairment charges, acquisition charges, impairment of intangible assets, and legal charges for violation of antitrust law) in the Quarter ended 2022 and additional income settlement about the acquisition of a subsidiary.

EPS (earnings per share) – has increased by 159% as it rose from Rs.13.6/ share to Rs.35.3/ share. 

While we saw how Sun Pharma performed financially, we can now investigate how the Indian pharma market has been performing recently.

The Indian pharma market has been growing during covid and post covid scenarios with high demand for vaccines and follow-up therapies. Though there were adversities and challenges during the pandemic, the pharma companies turned the obstacle into opportunities to perform globally.

The USA factor

The USA imported pharma products from India around USD 9.08 billion in 2022. They import specialty and generic medicines, vaccines, anti-retroviral drugs, and more from the Indian market.

 While China is the largest supplier of API (active pharmaceutical ingredient), India imports them to produce generic medicines, which export to the USA.

Though India has been a leading exporter to the USA, recently, the pharma stocks in NSE/BSE have been falling and, consequently, the pharma index.

When analyzing the reasons, we found that:

  1. The US generic medicine sector has faced high pricing pressure since 2022. As there need to be fewer approvals for these kinds of drugs, there has been increased competition in the market, making the companies fail to generate profitable Revenue.
  2.  The stringent actions were taken by US F.D. inspecting various facilities in the US, and India has temporarily closed many of them.

While most Pharma companies have been affected by the above-discussed factors, we will see in detail other pharma stocks are performing overall.


Total revenue from operations:

There has been a revenue drop of 22.5%, which stands at Rs.1950.8 crores as against Rs.2518.4 crores in Q42022.

While the PAT also stood at a loss of 64% to Rs.320.97 crores in Q4FY23 from Rs.894.64 crores in the past year.

While there has been so much bad news around its profitability, the company announced an Rs.30/ share dividend.


Total revenue from operations:

In a similar share, Laurus Labs also announced its Q4 results with Revenue at Rs.1381 crore against its Q42022 earnings of Rs.1425 crore. It registered a loss of 3.1%.

While the net profit for Q423 stood at Rs.103 crore against Rs.243.3 crore for Q422, the loss percentage stood at 56%.

How does Sun Pharma outshine other pharma companies?

The Laurus pharma CEO said that ARV and API revenue contributed only 35% of Revenue while it used to be at 85%.

The significant revenue drop has been due to ARV formulations’ unexpected and severe price-led impact. While Laurus Pharma is in Hyderabad and Vishakhapatnam, they are not outside India. The company majorly depends on HIV medications and is not geographically spread, which could have led to its decline in the market.

Divis Labs also reported loss; though it has a wide range of business product segments compared to Laurus Labs, the company confines manufacturing facilities in India alone.

Let us compare all 3 companies in critical aspects:

COMPANYEstablished yearLabs around the worldP/EROE
SUN PHARMA1983operates in 100+ countries27.3715.13
LAURUS LABS20065522.719.56
DIVIS LABS19902 in India50.614.28

While we can see that the PE of Divis is on the higher side, Sun Pharma leads the market because of its diversified product portfolio, venturing into new product segments rather than investing in a particular medicine segment. Its stable working environment worldwide makes it stand apart from the crowd.

Finance World

Why Muthoot Finance is not affected by the small cap and mid cap fall?



This week, if you’ve been keeping an eye on the stock market, you might’ve noticed something unusual. While the small cap and mid cap markets took a serious dive, Muthoot Finance seemed to just avoid it, falling by a mere 2%. So, what’s their secret?

What is the business of Muthoot Finance?

First up, Muthoot Finance has a strong foothold in gold loans. Now, why does this matter? Well, when other investments seem risky, people tend to fall back on gold because it’s considered a safer bet. With gold prices staying high, Muthoot’s gold loan business is like a stable ship in a stormy sea.

Muthoot Finance target price by Kotak

Kotak Institutional Equities is pretty optimistic about Muthoot, recommending a “buy” with a target of Rs 1,500. They think Muthoot is in a prime spot to grab a bigger slice of the gold loan market. Plus, with some Non-Banking Financial Companies (NBFCs) hitting a rough patch, Muthoot has a clear ground to expand and grow further. Unlike NBFC, Muthoot has a strong ground presence with offices and branches, they have physical repo with their customers, unlike NBFC who operate from AC offices.

New Friends and New Frontiers

Muthoot isn’t just sitting pretty with its gold loans; it’s also making moves. It teamed up with Evfin to finance electric two-wheelers across India. And there’s more – Muthoot FinCorp has brought Veefin Solutions on board to kick off supply chain finance operations. This means they’re planning to lend a hand to small and medium businesses, helping them keep the wheels turning. So, its a great news that Muthoot is expanding into fields that are not dependent on gold loans alone.

Spreading Their Wings

Muthoot Microfin, a part of the Muthoot Group, is pushing into new territories too. They’ve just set foot in Telangana and have their sights set on Andhra Pradesh next. This move is about bringing more people into the financial fold, especially in places where banking services might be hard to come by. This gives an edge to Muthoot over banks and NBFC.

Are you wondering whether to invest in Muthoot Finance or Manappuram Gold? Take a look at this:

So, What’s the Deal?

While the market’s mood swings have sent some companies into a pit, Muthoot Finance has managed to stay stable. Thanks to its focus on gold loans, strategic partnerships, and expansion plans, it’s not just surviving; it’s set to thrive. So, while the rest of the market might be catching its breath, Muthoot is marching on, steady as ever.

Keep following us for more such latest news on TradeAlone.

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Finance World

Infibeam Avenues Ltd expands into the US Market with an Acquisition



Hello, digital pioneers and fintech enthusiasts! Let’s dive into a groundbreaking announcement for Infibeam. Infibeam Avenues Ltd, an AI-powered financial technology, is embarking on an exciting journey by acquiring a 20% stake in XDuce. XDuce is a mastermind in enterprise Application and AI development based in the United States. This bold move involves an investment of USD 10 million. This also marks a significant milestone in Infibeam Avenues Ltd’s global expansion narrative.

XDuce: A Hub of Innovation

Nestled in the heart of New Jersey, XDuce boasts a team of over 150 software developers. They’re a team behind the curtain for marquee clients like Bank of America and Morgan Stanley, to name a few. XDuce’s expertise in business application implementations and transformation is nothing short of legendary in the financial and insurance sectors of North America.

A Fusion of Giants

So, what happens when Infibeam Avenues Ltd and XDuce comes together? Infibeam Avenues Ltd wants to merge it’s AI Solutions and CCAvenue Payments business into the network that XDuce has built. This collaboration is about expanding business footprints, revolutionizing how AI-driven technologies are employed in fraud detection, authentication, and risk identification in the financial sector of the US.

Redefining Financial Technology

Imagine a world where transaction fraud is no longer a looming threat, thanks to state-of-the-art AI technologies. That’s the vision Mr. Jay Dave, CEO of XDuce, and Mr. Rajesh Kumar SA, CEO of Phronetic.AI, share. By integrating PhroneticAI abilities with XDuce’s solutions, they will offer businesses and consumers in the US with security and efficiency.

The Road Ahead

According to Mr. Vishwas Patel, Joint Managing Director of Infibeam Avenues Ltd, international business currently contributes less than 10% to the company’s total revenue. But with strategic moves like this, they’re aiming for international business to soar to 30% of total revenue in the coming years.

Infibeam Avenues Ltd at a Glance

Infibeam Avenues Ltd is at the forefront of offering digital payment solutions and enterprise software platforms across the globe. With a transaction worth INR 4.5 trillion (US$ 54 billion) processed in FY23, and a client base of over 10 million. Spread across digital payments and enterprise software platforms, they’re leading digital revolution.

Wrapping Up

The strategic investment in XDuce is a bold step towards Infibeam Avenues Ltd’s vision of global expansion and innovation.

Stay tuned with Tradealone, as we continue to follow this exciting journey of Infibeam Avenues Ltd. Stock price for Infibeam closed 7% up today. We also see a continues profit growth for Infibeam Avenues over the past 4 years. Although, we cant recommend a buy or sell call for the stock, however we feel this stock deserves your attention.

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Finance World

Satin Creditcare Expands its Reach by entering Telangana and Andhra Pradesh, stock has doubled so far this year



In a country where financial inclusion remains a major yet challenging goal, the expansion of services to underbanked regions marks a significant step forward. Satin Creditcare Network Limited (SCNL), a leading name in microfinance, announces its strategic entry into Telangana and Andhra Pradesh. This move not only amplifies SCNL’s presence to 26 states and union territories across India but also underlines its commitment to empowering the economically marginalized communities with vital financial services.

A Leap Towards Nationwide Financial Inclusion: SCNL’s mission to drive financial inclusion is more than just a business expansion; it’s a pledge to reach the unreached. The opening of two new branches in Telangana (Warangal and Huzurabad) and one in Kadiri, Andhra Pradesh, is a testament to SCNL’s dedication to making financial services accessible to all, especially in rural and semi-urban areas where banking facilities are scarce.

Why Telangana and Andhra Pradesh?

The choice of Telangana and Andhra Pradesh for SCNL’s latest expansion is strategic. Both states have shown promising economic growth yet house significant populations that lack access to basic financial services. By stepping into these states, SCNL aims to fill this gap, offering microfinance solutions that can serve as a catalyst for economic empowerment and sustainable development. Moreover, Telangana is a fast growing hub for Pharma industry as the state capital Hyderabad leads the way.

SCNL’s Blueprint for Empowerment

SCNL’s approach to empowerment through financial inclusion is holistic. Focused on rural India, with 76% of its operations dedicated to rural communities across 97,000 villages, SCNL is not just providing financial services but is also contributing to the rural economy’s growth. This expansion is a stride towards enabling access to credit for the underserved, thereby fostering an environment of economic resilience and growth.

A Message from the Leadership

Mr. HP Singh, Chairman cum Managing Director of SCNL, remarks, “Our expansion into Telangana and Andhra Pradesh is a significant milestone in our journey towards a financially inclusive India. It’s not merely about increasing our geographical footprint; it’s about touching lives, empowering the marginalized, and contributing to the nation’s economic fabric. We’re here to make a difference, one individual, one community at a time.”

Ashirvad Microfinance is a fast growing company as well. Check it out if you are interested.

Beyond Expansion – A Look at SCNL’s Innovations

SCNL’s innovations extend beyond traditional microfinance. The institution’s portfolio includes loans to MSMEs, affordable housing loans through its subsidiary Satin Housing Finance Limited (SHFL), and the commencement of MSME business through Satin Finserv Limited (SFL). These initiatives demonstrate SCNL’s commitment to diversifying financial solutions that cater to various needs of the underserved.

The Road Ahead for SCNL

As SCNL carves new paths in Telangana and Andhra Pradesh, the future looks promising. This expansion is not just about growth but about deepening the impact of financial inclusion across India. With continued innovation and a steadfast commitment to its mission, SCNL is poised to create significant strides in empowering communities and fostering economic development across the country. Moreover, the stock price for Satin Creditcare has almost doubled in the last one year.

Conclusion: SCNL’s expansion into Telangana and Andhra Pradesh marks a new chapter in its mission to facilitate financial inclusion across India. By reaching out to the economically marginalized sections of society, SCNL strengthens its role as a catalyst for economic empowerment and sustainable development. As we watch this journey unfold, the prospects for a financially inclusive India appear brighter than ever. Despite that we do not see any positive signs from the revenue and profit growth of the company over the last 5 years. Thus, we feel that investors must be cautious while investing here.

Remember that microfinance companies also face competitions from the major banks. However, as this move is towards uncharted regions of Telangana and Andhra, we do not think that the banks would pose any risk to Satin Creditcare.

Call-to-Action: We invite you to join the conversation: How do you think SCNL’s expansion will impact financial inclusion in Telangana and Andhra Pradesh? Share your thoughts and insights in the comments below. Let’s discuss how financial empowerment can transform lives and communities. Also, please follow Tradealone for more such latest updates.

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