Sun Pharma tops domestic drugmakers' list; Cipla and Ranbaxy slip two positions each

By Kiran Somvanshi

MUMBAI: Mumbai-based Sun Pharma has made it to the top of the domestic drug makers’ leaderboard through overseas acquisitions and quadrupling of revenue in five years.


Others like Aurobindo Pharma and Glenmark, too, have outperformed their peers during this period. Sun Pharma’s rise stands out as five years ago, the company was not in the top-5 list of domestic drugmakers by revenue despite being the most profitable and valuable in the sector.

The acquisition of Ranbaxy Labs, the country’s third-largest pharma company, is only likely to bolster Sun’s position. While most of its peers are valued at 3-4 times their revenues, Sun’s valuation is 11 times more. Among the top five, Dr Reddy’s Labs and Lupin have managed to hold on to their ranks as second- and fourth-largest pharma companies, respectively. Better quality of earnings has led to Lupin being valued higher than DRL.

However, both Cipla and Ranbaxy have slipped two rungs. Ranbaxy is now the third largest and Cipla fifth largest. In the last five years, both companies have barely managed to double their revenues while their profitabilities have deteriorated.

Wockhardt and Jubilant Life Sciences have been the biggest disappointment in terms of growth. From being the fifthlargest company by revenue, Wockhardt has dropped to 10th spot.

Its valuation continues to remain the lowest amongst peers. Contract manufacturing firm Jubilant Life Sciences has dropped two places to ninth position. Analysts expect Wockhardt and Jubilant Life to be replaced by faster-growing companies like Torrent Pharma and Ipca Labs by the end of the current fiscal.

Aurobindo Pharma and Glenmark Pharma are the other bright spots. From ninth position, Aurobindo Pharma has moved up to sixth.