Criteria of Selection

PE ratio was used later-on to compare these stocks with their industry Peers
Identified Stocks
SUN Pharma
TATA Sponge Iron Ltd.

Zensar Technologies

SUN Pharmaceutical Industries
TATA Sponge Iron Ltd.

Company Background
SUN Pharma is a multinational company headquartered in Mumbai, Maharashtrathat manufactures and
sellls pharmaceutical formulations and active pharmaceutical ingredients mainly in India and United
States .
Company is virtually debt free.
Company has good consistent
profit growth of 21.45% over 5
years
Company has been maintaining
a healthy dividend payout of
17.88%
Company is expected to have a
good quarter
Key Figures
Market Cap:
153734.82 Cr.
Return on Equity:
32.47%
Stock P/E ratio : 26.87 Sales Growth: 10.11%
Return on Assets :
24.57 %
Return on CE: 24.57%
Profit Growth: 59.82% Net Worth: 1587.12 Cr.
Dividend Yield: 0.34%
No Cons. Identified
Analysis
P/E Ratio
SUN Pharma. has P/E ratio of 26.87 in comparison to the industry PE of 22.71
P/E Ratio is less than its peers ( TCS, Infosys, Wipro, Tech Mahindra, Oracle Financial Services Software)
Hence since P/E Ratio < Peers <Industry ( Its a good choice to invest in this stock)
Dividend Yield
Dividend Yield is 0.34% which is greater than its peers. Average yield for the peers is 0.32%
This makes it a good choice to invest
Constantly Outperforming Sensex
Return On Equity
ROE for Sun Pharma is 24.57% which is better than its peers
Return On Capital Employed
ROCE for SUN Pharma is 24.57% which is better than its peers like Lupin, Dr.Reddys, Cipla and Aurobindo Pharma
Identified Stocks
Profit Growth
Profits: 3356.47 (12) 4905 (13) 7250.11 (14)
Compounded Profit Growth :
10 Yrs. 31.53% ; 5 Yrs. 21.45% ; 3 yrs: 45.78% ; TTM: 6.53%
High Equity (Low D/E ratio)
Secured & Unsecured Loans are negligible
Max Equity Share Capital & Reserves
Interest Coverage Ratio
459.14, which is sufficiently high to cover up the interest part of the debt
Debt to Profit Ratio
0.01%, Hence the firm is very well secured against all the debt issued