By Sanika Pandit
1. INTRODUCTION
- Sun Pharmaceutical Industries Limited is India’s largest pharmaceutical company and one of the world’s leading generic pharmaceutical companies with a strong market presence in branded generics, specialty medicines and APIs.
- The company operates in numerous therapeutic areas, including cardiology, psychiatry, neurology, dermatology, gastroenterology and oncology, and serves patients in more than 100 countries.
- Sun Pharma has a strong manufacturing and research and development infrastructure with multiple FDA-approved manufacturing plants and research centers to support innovation, quality compliance, and cost-effective operations. It follows an integrated business model covering research, manufacturing, supply chain management and global marketing, making it a suitable organization to conduct research focused on operations and supply chain.
- Sun Pharma’s size, regulatory exposure, and operational complexity provide an ideal environment to learn research methodological concepts related to process performance, quality control, and strategic decision making.
2. OBJECTIVE
To calculate β of Sun Pharmaceutical Industries Ltd. and observe its significance.
3. DATA COLLECTION
- Historical data of Sun Pharmaceutical Industries Ltd. and NIFTY50 index data (downloaded from NSE website for the period 01-Dec-24 to 30-Nov-2025).
- The data was manipulated to get Friday closing prices.
4. LITERATURE REVIEW
- ICMR case studies describe Sun Pharmaceutical Industries Ltd. as a leading Indian pharma company that expanded globally through acquisitions such as Ranbaxy. Existing literature highlights its strong operations and supply chain capabilities, along with regulatory compliance challenges that affect performance.
5. DATA ANALYSIS
- Regression Equation: – y = 0.900246x + 0.105506
where: –
y = Weekly Return for Sun Pharmaceutical Industries Ltd.
x = Weekly Return for NIFTY
This equation tells us that if weekly returns of NIFTY increases, then weekly return for Sun Pharmaceutical Industries Ltd also increases.
- Number of Observations = 48
- t-stat for β = 5.104385951
- p-value = 6.18746E-06 × 10⁻⁶ This indicates that since p-value < 0.05, β is statistically significant at 1% level.
- R2 = 0.361596616 This indicates that around 36% of the weekly return for Sun Pharmaceutical Industries Ltd. is explained by the weekly return for NIFTY. 64% is the error due to the other variables which are not in model.
- F = 26.05475594 The overall model is statistically significant.
6. CONCLUSION
Here β = 0.900246231 Since β ≤ 1, it is good for long-term investment if NIFTY rises.
7. REFERENCES
- ICMR Case Research Centre. Sun Pharmaceutical Industries Ltd.: Acquisition of Ranbaxy Laboratories. ICMR, Hyderabad.