Does Market Capitalisation Reflect Real Profitability? A Stdy on Sun Pharmaceutical Industries Ltd. (2008 - 2024)

Author : Dr. Nisha K. G

Abstract :This paper explores the relationship between market capitalisation and profitability of Sun Pharmaceutical Industries Ltd., India's largest pharmaceutical company, over selected years between 2008 and 2024. It compares verified market capitalisation and net profit values in Indian rupees for the years 2008, 2012, 2016, 2020, and 2024. Findings show that while profitability and market value are positively related in the long term, deviations exist in certain years due to market sentiment, acquisitions, and regulatory events. The study concludes that market capitalisation reflects profitability partially but not perfectly, and should be assessed with financial data and external context.

Keywords :Market Capitalisation, Net Profit, EPS, Sun Pharma, Indian Pharmaceutical Sector, Longitudinal Analysis.

Conference Name :International Conference on Global Business, Economics, Finance & Social Sciences (ICGBEFSS-25)

Conference Place Chennai, India

Conference Date 1st Nov 2025