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Sun Pharma Advanced Research Company Ltd Stock Analysis

Small Cap
Evaluated by 1771 users | BSE: 532872 | NSE: SPARC |
Miscellaneous

Sun Pharma Advanced Research Company (SPARC) is a clinical stage bio-pharmaceutical company focused on continuously improving standards of care for patients globally, through innovation in therapeutics and delivery. SPARC was formed in 2007 through a demerger...

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Sun Pharma Advanced Research Company Ltd has not performed well majority of the past ten years indicating its past ten year financial track record is not good
Value Creation
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed -63.23%-1039.89%-21.14%17.97%-31.77%-71.29%-95.66%-134.42%-59.51%-179.38%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 58.42987.316715616118178.318376.8
Y-o-Y Gr. Rt.--50.3%201.2%91.4%-6.8%3.6%12.2%-56.8%133.7%-58%
Adjusted EPS (Rs.) -0.43-3.42-0.961.09-1.66-2.95-4.87-9.33-5.51-11.97
Y-o-Y Gr. Rt.-NANANA-252.3%NANANANANA
Book Value per Share (Rs.) 0.27-3.164.525.824.181.216.413.7111.3-0.71
Adjusted Net Profit -9.1-72.6-2326.1-39.6-69.8-120-234-144-314
Net Op. Cash Flow (Rs. Cr.) 2.3-69.5-95.336.9-41.2-44.2-128-183-172-211
Debt to Cash Flow from Ops 2.87-0.98-0.850.14-0.1-1.26-0.02-0.01-0.01-0.32
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Sun Pharma Advanced Research Company Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 3.1%-13.2%-24.9%-58%
Adjusted EPS NANANANA
Book Value per Share -211.3-170.2-148-106.3
Share Price 8.7% -10.8% -26.6% 20%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) -92.07238.13-109.7821.04-33.15-106.06-126.66-136.59-60.03-225.95
Operating Profit Margin (%) -11.36-241.28-18.9820.06-22.45-38.97-67.69-309.98-79.05-397.68
Net Profit Margin (%) -15.58-250.59-26.315.61-25.44-43.27-66.45-299.23-78.94-408.28
Debt to Equity 1.17-1.020.750.040.041.940.020.020.01-3.67
Working Capital Days 31123110161200163210641254554
Cash Conversion Cycle -78-54-27-63-80-130-170-113-272-254
Entity Percentage Holding
Promoters 68.46%
Institutions 3.07%
Non-Institutions 28.46%
Pledged *2.033.143.053.053.053.051.321.901.900.75
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of Sun Pharma Advanced Research Company Ltd and arrived at the following conclusion:

Past 10 year's financial track record indicates that Sun Pharma Advanced Research Company Ltd is a below average quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of Sun Pharma Advanced Research Company Ltd's performance infers:

Sun Pharma Advanced Research Company Ltd earnings have grown by 0%, whereas share price has depreciated -10.8% CAGR over the past five years, indicating the company's share price is likely undervalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Sun Pharma Advanced Research Company Ltd share prices over the last 10 years. Here is what we found out:

Sun Pharma Advanced Research Company Ltd share price has depreciated 6.3% annually over the past ten years.

Sun Pharma Advanced Research Company (SPARC) is a clinical stage bio-pharmaceutical company focused on continuously improving standards of care for patients globally, through innovation in therapeutics and delivery. SPARC was formed in 2007 through a demerger from SUN PHARMA, a global leader in speciality generics. It strive to build an enduring innovation engine built on strong scientific execution, high value analytics and aggressive portfolio management. A

Sun Pharma Advanced Research Company (SPARC) is a clinical stage bio-pharmaceutical company focused on continuously improving standards of care for patients globally, through innovation in therapeutics and delivery. SPARC was formed in 2007 through a demerger from SUN PHARMA, a global leader in speciality generics. It strive to build an enduring innovation engine built on strong scientific execution, high value analytics and aggressive portfolio management. A robust mix of internal ideation and strategic partnering with academic innovators and bio-pharma entrepreneurs fuel engine with potentially high impact ideas.

The company partner with thought-leading clinicians across the world for ideas and access. Innovation through integration of partner knowledge and efficient internal execution shapes future. SPARC is a vibrant innovation community spread over three locations globally. It endeavour to develop a meritocracy which takes pride in continuous learning and re-invention. SPARC is a responsible public company committed to maintaining highest standards of ethics and transparency.

Business area of the company

The company is engaged in the pharmaceutical research and development. The company’s core focus is innovation and new product development for global markets. SPARC undertakes projects in research and technology for new chemical entities (NCE’s) or new molecules, and novel drug delivery systems (NDDS).

Products

  • Therapeutic Focus (Oncology, Neuro Degeneration, Ophthalmology, Dermatology)
  • Delivery Technologies (Gastro Retentive Innovative Device, Wrap Matrix, Abuse Deterrent Program, Nanotecton Technology, Dry Powder Inhalation, TearAct, Lipixelle, Gel Free Reservoir)
  • Research Programs (Taclantis, SCO - 088, SCD - 044, SCC - 138, SCO - 120)

Milestones

  • 2006: SPARC is founded in Vadodara, India
  • 2007: Innovative R&D business was demerged from Sun Pharmaceutical Industries Limited to focus on innovative drug research
  • 2007: Listed on Bombay Stock Exchange and National Stock Exchange of India
  • 2012: 1st NDA filed with USFDA for Elepsia XR
  • 2012: Raised Rs. 200 crore through Rights Issue
  • 2013: Filed NDA for Xelpros with USFDA
  • 2014: US rights for Xelpros licensed to a subsidiary of Sun Pharma
  • 2015: Entered into research collaboration in the field of Oncology with US University
  • 2015: Launched Bevetex (PICS) in India
  • 2016: Raised Rs. 250 crore through Rights Issue
  • 2017: Secured funding of up to Rs. 500 crore through Preferential Allotment of warrants convertible into equity shares
  • 2018: Entered into collaboration with Schrödinger to accelerate Neurodegeneration Drug Development Programs
  • 2018: Positive top line results reported for the pivotal bioequivalence study of Taclantis (Paclitaxel Injection Concentrate for Suspension)
  • 2018: US FDA approved Xelpros for the treatment of open-angle glaucoma or ocular hypertension
  • 2019: Entered into licensing agreement with Bioprojet SCR to acquire exclusive rights for Investigational Medicinal Product, SCD-044
  • 2019: Entered into a licensing deal with China Medical System Holdings Limited (CMS) to develop and commercialize multiple products in Mainland China, Hong Kong, Macao, and Taiwan
  • 2019: Orphan Drug Designation received from the US FDA for SPARCs neonatal seizures drug, Phenobarbital
  • 2019: Orphan Drug Designation received from the US FDA for SPARCs Chronic Myeloid Leukemia drug, SCO-088
  • 2019: NDA for Taclantis (Paclitaxel Injection Concentrate for Suspension) accepted by US FDA for review
  • 2019: Entered into collaboration with HitGen for Innovative Drug Discovery Research
  • 2020: Entered into a worldwide license agreement for SCD-044 with Sun Pharma
  • 2020: Entered into collaboration with the University of Michigan to kickstart research and development of potential new medications
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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