Sun Pharma Advanced Research Company Limited, also known as SPARC, is a bio-pharmaceutical research company which focuses on new chemical entities and drug delivery systems.
The market capitalisation of Sun Pharma Advanced Research Company as of August 24, 2018 was a little over Rs.9,500 crore.
Company’s Wealth and Recent Performance
- For the first quarter of the financial year 2018-19, Sun Pharma Advanced Research Company reported its total income to be at Rs.18.04 crore. With respect to the March quarter, this marks a drop of roughly Rs.2 crore while in comparison to the June quarter of the previous fiscal, the drop in total income is roughly Rs.6 crore.
- Considering the total expenses for the period, it was reported to be at Rs.82.52 crore - a reduction of a little over 15% y-o-y.
- Subsequently, the company reported a loss of Rs.64.4 crore for the period. Considering this figure y-o-y, the company reduced its losses by a little over Rs.14 crore.
Sun Pharma Advanced Research Company Limited Stock Trends in 2018
- On January 2, 2018, the share price of Sun Pharma Advanced Research Company was reported to be at Rs.503.90 on the NSE. The price rose by a little over 5% in the first half of the month to reach its 52-week high at Rs.532. In the second half, however, the scrip lost all the gains it had made in the previous weeks. The closing price on January 31, 2018, was Rs.453.30.
- Over the course of February, the SPARC shares lost marginally, driven by uncertainties in the international markets. The stocks continued to be bearish in the month of March as well, with the scrip eventually descending into the Rs.300 territory. On March 28, the shares ended the trading session at Rs.377.35.
- In April, the stock price of SPARC managed to recover and ascend into the Rs.400 region again. Throughout the course of April, the shares were seen trading hands at levels varying from Rs.410 - Rs.430. In May, the share price dropped once again driven by a poor performance in the Q4 FY18. After touching the Rs.350 mark, the share price of Sun Pharma Advanced Research Company rose slightly to end the month at Rs.407.60.
- The month of June was a tumultuous one for the investors. After trading in the Rs.400 region for two weeks, the shares ended up shedding their gains once again to end the month at Rs.371.25. Things didn’t change considerably in the months of July and August with the shares constantly trading at levels above Rs.350.
Sun Pharma Advanced Research Company Limited Stock Trends in 2016 and 2017
- At the start of 2016, the share price of SPARC was seen varying at levels around Rs.330 - Rs.350. Like many stocks in that period, the Sun Pharma Advanced Research shares lost quite a bit over the course of the first two months. For most of February, the shares traded hands in the Rs.200 region. In March, however, the shares managed to recover and cross the Rs.290 mark.
- Things didn’t change considerably for the most of April. It wasn’t until the last week of the month that the shares crossed the Rs.300 mark. However, the stocks failed to stabilise at those levels and almost immediately, they retreated back to their previous levels above Rs.250.
- In the final week of June 2016, the share price of SPARC moved up by a little over 20%. As a result, by early July, the stocks were trading at levels well-above the Rs.340 mark. The share price continued to rise steadily and in August, the stocks were seen inching closer to the Rs.400 mark.
- Through the course of August, the shares were traded at levels mainly above Rs.360. The stocks exhibited a similar trend in the first half of September as well. In the second half, however, the shares lost close to 10% and they descended onto the levels at Rs.330.
- For the remainder of the year, the stock price of Sun Pharma Advanced Research Company remained buoyant at levels above Rs.300, without making any noteworthy gains. The closing price of the scrip on December 30, 2016, was Rs.304.80.
- 2017 proved to be a remarkable year for the SPARC stocks. In the first half of the year, the share price didn’t change significantly as the stocks managed to retain their bearings at levels above Rs.300. The scrip commenced the year trading at Rs.305. By early March, the shares were up by a little over 10% since the start of the year.
- Through the course of April and May, the shares were in a state of gradual decline. The shares lost a little over 15% in this period to descend into the Rs.200 region. While the prices did manage to recover towards the end of May, the best they could do was just cross the Rs.300 mark. In June and in the first half of July, the shares traded hands at levels varying from Rs.300 - Rs.310.
- In the second half of July, the share price of Sun Pharma Advanced Research Company commenced a bull run which went on for the remainder of the year. The shares were by more than 20% by the end of July, with the stocks trading at levels above Rs.370. In August, the shares managed to cross the psychologically important mark of Rs.400.
- The months of September and October were quite volatile for the investors. The share price was varying greatly in this period, although, the stocks did manage to remain above the Rs.350 mark. The prices rose once again in late October and this time, the rally lasted till the end of the year. The scrip made excellent gains in November and December, with the closing price on December 29 being Rs.507.70.
Should you invest in Sun Pharma Advanced Research Company Limited?
- As the name suggests, Sun Pharma Advanced Research Company Limited is a bio-pharmaceutical research company which is engaged in the research and development of therapeutics and drug delivery systems.
- For the June quarter of the FY19, the company reported a loss of Rs.64.4 crore. For the year ended on March 31, 2018, the company reported an astounding loss of Rs.197 crore.
- Considering the performance of the company’s stock, the share price improved by a little over 30% in 2017 to end the year on a high at levels close to Rs.510. Over the course of 2018, however, the shares have lost more than 20% since the start of the year. As of late August, it was trading at levels close to Rs.370.
- In terms of sales turnover and profits, there are superior companies in the pharmaceutical sector. However, it is important to note that Sun Pharma Advanced Research Company generates its revenues purely by research and development activities, rather than traditional sales. It leverages its alliances and collaborations to boost its pipeline and geographical reach.
- At present levels, Sun Pharma Advanced Research Company appears to be an attractive buy. However, before investing in this company, it is strongly suggested that you do your own research.
Sun Pharma Advanced Research Company Limited is an R&D company which is focused on researching and developing drug delivery systems and therapeutics. The company stemmed through a demerger from Sun Pharmaceuticals Industries Limited. Its therapeutic areas of interest are oncology, dermatology, pain, ophthalmology, and neuro-degenerative diseases.
History of the Company
The roots of the company can be traced back to the year 2006, when Sun Pharma Advanced Research Company Limited was incorporated. The company was a result of a demerger from Sun Pharmaceutical Industries Limited. It was formed as a separate research and development entity to focus on new drug delivery systems and therapeutics. In 2007, the company was listed publicly on the National Stock Exchange of India and the Bombay Stock Exchange. The company commenced its operations by developing and conducting clinical studies for various drugs and has been continuing to do so ever since. It also raised funds through Rights Issue over the years.
Management of the Company
Mr. Dilip S. Shanghvi - Chairman & Managing Director
Mr. Dilip S. Shanghvi presently serves as the Chairman and the Managing Director of Sun Pharma Advanced Research Company Limited. He has held this post since March 2012. He is popularly known as the founder of Sun Pharmaceuticals Industries and has served as the company’s Managing Director and Chairman. He is significantly experienced in the various operational segments of the pharmaceutical sector. Over the years, he has been associated with various reputed pharma companies like Taro Pharmaceuticals Industries Limited and Caraco Pharmaceutical Laboratories Limited. He is on the Board of various companies like Sun Fastfin Services Private Limited, Sun Petrochemicals Private Limited, Sun Resins & Polymers Private Limited, et cetera. He holds a Bachelor’s degree in Commerce from the Kolkata University.
Mr. Anil Raghavan - Chief Executive Officer
Mr. Anil Raghavan is the Chief Executive Officer of Sun Pharma Advanced Research Company Limited. Prior to his appointment to the present position in April 2014, he was associated with Quintiles, where he served as the Managing Director of the India and Sri Lanka businesses. He played an important role in ensuring that Quintiles India maintains a strong growth in a rocky business environment. He started his career in the consulting industry and has worked with various reputed firms like Arthur Andersen, KPMG, and Cambridge Technology Partners. He is a veteran of the pharmaceutical industry and specialises in business strategy and operations.
Mrs. Bhavna G. Doshi - Independent Director
Mrs. Bhavna G. Doshi presently serves as a Non-Executive Independent Director of Sun Pharma Advanced Research Company Limited. She has held this position since October 2014. In addition to this, she also serves as a Senior Advisor at KPMG, where she provides advisory services in the segments of corporate, accounting, and taxation. She has also served as the President and Vice-President of Indian Merchants’ Chambers. She is a fellow member of the Institute of Chartered Accountants of India.
Sun Pharma Advanced Research Company Limited Listings in NSE, BSE, and Indices
The equity shares of Sun Pharma Advanced Research Company Limited are available to the general public for trading. The shares are listed on the country’s two benchmark stock exchanges - the National Stock Exchange of India Limited and the Stock Exchange, Mumbai. The respective codes for the same are as follows:
- BSE Code: 532872
- NSE Code: SPARC
- ISIN: INE232I01014
- Sector: Pharmaceuticals
Coming to the stock market indices, the company does not comprise the Nifty 50 and BSE Sensex. However, it does form other important indices like:
- Nifty 200
- Nifty 500
- Nifty Midcap 100
- Nifty Midcap 150
- S&P BSE 500
- S&P BSE AllCap
- S&P BSE Healthcare
- S&P BSE SmallCap
- S&P BSE MidSmallCap
Sun Pharma Advanced Research Company (SPARC Limited)
17 B, Mahal Industrial Estate
Mahakali Caves Road
Mumbai - 400093
Contact number: +91-22-6645-5645
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