India's insurance giant Life Insurance Corporation of India has significantly increased its investment in Sun Pharmaceutical Industries. The state-owned behemoth, which is also the country's largest institutional investor, now holds more than five percent of the pharma company.
LIC's Strategic Move
According to a fresh exchange filing dated January 14, LIC purchased 202,500 shares of Sun Pharma from the open market on January 13. This transaction represents a 0.008 percent stake in the company.
With this latest acquisition, LIC's total stake in the blue-chip pharmaceutical stock has climbed to 5.004 percent. Previously, the insurance corporation held 4.996 percent of Sun Pharma.
Historical Shareholding Pattern
Data from the Bombay Stock Exchange reveals that LIC owned 10.12 crore shares of Sun Pharma at the end of the September quarter. This translated to a 4.22 percent stake in the company at that time.
The shareholding pattern for the December quarter has not been released yet. As of the second quarter of financial year 2025-26, promoters controlled 54.48 percent of Sun Pharma.
Sun Pharma's Market Performance
Despite the news of LIC's increased stake, Sun Pharma shares closed lower on the trading day. The stock ended at ₹1,700.55 on the BSE, marking a decline of 1.7 percent.
Over the past year, the pharmaceutical stock has shown minimal movement with a four percent drop. However, the longer-term performance tells a different story.
Longer Time Frame Returns
Sun Pharma stock has demonstrated strong growth over extended periods. The shares have rallied 28 percent in two years and jumped 65 percent in three years.
Looking further back, the stock delivered impressive returns of 180 percent over five years and 115 percent over ten years.
Financial Health of Sun Pharma
The company reported solid financial results for the first half of the current financial year. Sales grew by 9.3 percent to reach ₹28,191.3 crore.
Adjusted profit, which excludes exceptional items, increased by 4.1 percent to ₹6,114.1 crore during the same period.
Research and Development Focus
Sun Pharma invested ₹1,685.5 crore in research and development activities. This amount represents six percent of the company's total sales, highlighting its commitment to innovation.
Management Perspective
Kirti Ganorkar, Managing Director of Sun Pharma, commented on the company's performance. "India, Emerging Markets and the Rest of World led our growth for the period," Ganorkar stated.
"US sales of Innovative Medicines have surpassed Generics for the first time during the quarter," the managing director added. "We remain focused on broadening our portfolio while strengthening in-house talent pool and execution capability."
Disclaimer: This information serves educational purposes only. Investors should consult certified experts before making any investment decisions.
