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Sun Pharmaceutical Industries Limited: Company Overview

Sun Pharmaceutical Industries is an Indian pharmaceutical company headquartered in Mumbai. It manufactures and sells pharmaceutical formulations and active pharmaceutical ingredients, primarily in India and the United States. The company offers drugs in several therapeutic areas such as cardiology, psychiatry, and neurology. Technical analysis of Sun Pharma's stock shows bullish indicators such as the 9-day exponential moving average cutting above the 26-day EMA, and the MACD indicator showing a bullish trend. Based on the company's financial growth, market leadership, and its operation as an essential business, the analyst recommends a strong buy on Sun Pharma's stock.

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112 views9 pages

Sun Pharmaceutical Industries Limited: Company Overview

Sun Pharmaceutical Industries is an Indian pharmaceutical company headquartered in Mumbai. It manufactures and sells pharmaceutical formulations and active pharmaceutical ingredients, primarily in India and the United States. The company offers drugs in several therapeutic areas such as cardiology, psychiatry, and neurology. Technical analysis of Sun Pharma's stock shows bullish indicators such as the 9-day exponential moving average cutting above the 26-day EMA, and the MACD indicator showing a bullish trend. Based on the company's financial growth, market leadership, and its operation as an essential business, the analyst recommends a strong buy on Sun Pharma's stock.

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Mera Birthday 2021
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SUN PHARMACEUTICAL

INDUSTRIES LIMITED
NSE: SUNPHARMA

COMPANY OVERVIEW
Sun Pharmaceutical Industries Limited (is an Indian
multinational pharmaceutical company headquartered in Mumbai,
Maharashtra, that manufactures and sells pharmaceutical formulations
and active pharmaceutical ingredients (APIs) primarily in India and the
United States. The company offers formulations in various therapeutic
areas, such as
• cardiology
• psychiatry
• neurology
• gastroenterology
• diabetology.

It also provides APIs such as warfarin, carbamazepine, etodolac,


and clorazepate, as well as anti-cancers, steroids, peptides, sex
hormones, and controlled substances.

AWARDS
• Sun Pharma stood second in the India's Most Reputed
Brands (Pharmaceutical) list in a study conducted by BlueBytes.
• a leading Media Analytics firm in association with TRA Research
• a brand insights organization
VARIABLES VALUES
Market Capitalisation 1,11,533 Crore
P/E Ratio 27.89
Dividend Yield 0.59%
Return on Capital (3 yrs.) 12.47%
EPS (yearly) 18.65%
Book Value 14.05

Market Price – 466.00


Market sentiment – Bullish

Suggestion: Strong Buy


Place an order when the prices range from 454.00-490.00.
Stop loss: 28 points
Expected growth – up to 56 points in the coming 1 month
PEER COMPARISION

COMPANY Market Cap. LTP % Change Traded Vol.


SUN PHARMA 11,15,33 Crore 466.00 0.33 1,60,97,081

DR. REDDYS LABS. 65,425 Crore 2275.65 -2.45 9,36,799

DIVIS LAB. 61,930 Crore 611.50 3.71 1,68,16,196

CIPLA LTD. 47,528 Crore 3920.00 -0.41 14,15,492


TECHNICAL ANALYSIS

CANDELSTICK PATTERN ANALYSIS

Bearish Doji Star


(Bearish Reversal)

The Bearish Doji Star appears in an uptrend and belongs to the bearish reversal
patterns group. Its occurrence should be confirmed on the following candles.
This pattern is distinguished by a gap between the first candle's high and the
following candle's low or between bodies of these two candles. First confirmation is
when the gap is covered on the candle following pattern. It can be a black candle
which body is located wholly below the doji's body. Other, stronger type of
confirmation, is when an uptrend line or a support zone gets broken.
Evening Doji Star
(Bearish Reversal)

The Evening Doji Star is a bearish reversal pattern, being very similar to the Evening
Star. The only difference is that the Evening Doji Star needs to have a doji candle
(except the Four-Price Doji) on the second line. The doji candle (second line) should not
be preceded by or followed by a price gap.
If a lower shadow of a doji candle would be placed above the first and the second line
shadow we would deal with the Bearish Abandoned Baby pattern.
It happens that two first candles are forming the Bearish Doji Star pattern.
The pattern, as every other candlestick pattern, should be confirmed on the next
candles by breaking out of the support zone or a trendline. If the occurrence is
confirmed, then its third line may act as a resistance area. It also happens, however,
that the pattern is merely a short pause prior further price increases.
The patterns is rather rarely occurring on the charts.
INDICATOR BASED TRADING

EXPONENTIAL MOVING AVERAGE CROSS

9 LAGS

26 LAGS

An exponential moving average (EMA) is a type of moving average (MA) that


places a greater weight and significance on the most recent data points. The
exponential moving average is also referred to as the
exponentially weighted moving average. An exponentially weighted moving average
reacts more significantly to recent price changes than a simple moving average
(SMA), which applies an equal weight to all observations in the period.

FINDING: The 9 lag cuts 26 lag series from below which indicates that the stock is
expected to rise in the future.
MACD

Moving Average Convergence Divergence (MACD) is a trend-


following momentum indicator that shows the relationship between two moving
averages of a security’s price. The MACD is calculated by subtracting the 26-
period Exponential Moving Average (EMA) from the 12-period EMA.

The result of that calculation is the MACD line. A nine-day EMA of the MACD
called the "signal line," is then plotted on top of the MACD line, which can function
as a trigger for buy and sell signals. Traders may buy the security when the
MACD crosses above its signal line and sell - or short - the security when the
MACD crosses below the signal line. Moving Average Convergence Divergence
(MACD) indicators can be interpreted in several ways, but the more common
methods are crossovers, divergences, and rapid rises/falls.

FINDING: It shows a bullish trend as when the stock rises the volume also rises.
RECOMMENDATION

➢ Above has been analysed that a lot of factors of the financials of


Sun Pharmaceuticals Pvt. Ltd are rising as apart of which we can
see factors such as
• Net Profit
• Market Capital
• Operating Profit

➢ Since there is an increase in all such factors mentioned above,


the stock price is projected to rise.

➢ Although the current scenario of COVID-19, the where the


industries are not operating and the stock market is crashing,
Sun Pharma being a pharmaceutical company is heading its
operation as it comes under essentials.

➢ The company’s sales market has increased over time. The


company’s last year sales growth was 10% which is a significant
growth.

➢ Currently Sun Pharma is the company with highest market


capitalisation or market capture and has been a reliable
pharmaceutical company in the country.
SOURCES

https://www.moneycontrol.com/
https://www.investing.com/
https://www.sunpharma.com/
https://www.businesstoday.in/
https://www.valueresearchonline.com/?
https://www.morningstar.in/default.aspx
https://www.crisil.com/
https://www1.nseindia.com/index_nse.htm
https://in.finance.yahoo.com/

THANKYOU
-UJJWAL WASON

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