Sun Pharma pips TCS in m-cap expansion on Nifty this fiscal

Dilip Shanghvi-led Sun Pharma displaced IT major TCS for the first time in three financial years as the country’s best performing stock in terms of market cap growth.

As on Thursday, Sun Pharma’s market cap stood at R2.12 lakh crore, gaining R93,811 crore during the fiscal, while TCS yielded its least market-cap in the last three fiscals. The IT major’s market cap stood at R4.9 lakh crore as on Thursday. In FY15, TCS’ m-cap has improved by R74,422 crore. In FY14 and FY13, TCS has gained market cap of R1.09 lakh crore and R79,649 crore, respectively.

Since FY12 Sun Pharma’s market cap has improved three times, whereas TCS’ m-cap has doubled. Sun Pharma shares surged 79% in FY15 as against 18% gains clocked by TCS in the same period. The Nifty has gained 24.4% in FY15.

The drugmaker has made the most significant contribution to Nifty’s market cap. Sun Pharma has contributed 9% to Nifty’s m-cap growth of R10.3 lakh crore in FY15. Meanwhile, TCS has contributed 7.2% to Nifty’s m-cap growth. As on Thursday, Nifty’s market-cap stood at R55.63 lakh crore after adding another R10.3 lakh crore to its market cap in FY15.

Analysts have reiterated their positive stance on Sun Pharma after the 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, Sep’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 more than 9% since the US FDA approval. Sun Pharma recently overtook SBI to become the eight most valuable company in terms of market capitalisation.

TATA Consultancy Services ( TCS )