Sun Pharma recently surpassed State Bank of India as the eighth most valuable company in terms of market capitalisation. At the end of Tuesday’s trade, Sun Pharma’s market cap stood at R2.15 lakh crore as against SBI’s R2.1 lakh crore.
Analysts have reiterated their positive stance on the stock after US FDA gave its approval for NDA Elepsia XR. “Sun Pharma Advanced Research Company announced US FDA approval for its NDA Elepsia XR, which was filed from Sun Pharma’s Halol facility (largest facility for the US).
This is the first product approval since Form 483 issuance (23 observations, Sept’14) at Halol, implying likely clearance of the facility by US FDA. This removes a key overhang on Sun Pharma,” analysts at Motilal Oswal Financial Services said in a note. Sun Pharma shares have gained 3.5% since the US FDA approval.
Meanwhile, analysts remain cautious on SBI. “The bank’s exposure to many stressed sectors has continued to rise. With balance sheet growth slowing down, the bank has focused on cost and income efficiencies. However, profitability would only improve gradually before the fully implemented Basel-III requirements cap RoEs at 12-13% over FY16-19. We retain ‘sell’ with an unchanged target price of R260 (implied standalone P/B of 1.0x Dec’16), analysts at Ambit Capital said in a recent note.
On Tuesday, Sun Pharma shares ended the day with a gain of 1.12% to R1,039.70, while SBI shares rose by 0.41% to close at R282.80 on the BSE.
While Sun Pharma’s market cap is currently R4,201 more than SBI’s market cap, five years back SBI’s market was nearly 5-times that of Sun Pharma’s.
Earlier this month, Sun Pharma promoter Dilip Shanghvi surpassed Mukesh Ambani as the richest Indian with a networth of $21.5 billion. Ambani-led RIL currently ranks as the country’s second most valued company after state-run ONGC.
TCS remains the most valued Indian company with a market cap of R5.05 lakh crore, followed by RIL (R2.77 lakh crore), ITC (R2.72 lakh crore), ONGC (R2.68 lakh crore), HDFC Bank (R2.64 lakh crore), Infosys (R2.57 lakh crore), CIL (R2.28 lakh crore), Sun Pharma (R2.15 lakh crore), SBI (R2.11 lakh crore) and HDFC (R2.10 lakh crore).