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Sun Pharma Advanced Research Co. Ltd. (IN:SPARC)
:SPARC
India Market
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Sun Pharma Advanced Research Co. Ltd. (SPARC) AI Stock Analysis

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IN:SPARC

Sun Pharma Advanced Research Co. Ltd.

(SPARC)

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Neutral 41 (OpenAI - 4o)
Rating:41Neutral
Price Target:
₹137.00
▲(3.91% Upside)
The overall stock score is primarily influenced by significant financial challenges, including negative profitability, high leverage, and cash flow constraints. Technical analysis indicates bearish momentum, while valuation metrics reflect ongoing financial difficulties. The absence of earnings call data and corporate events leaves these factors unaddressed.

Sun Pharma Advanced Research Co. Ltd. (SPARC) vs. iShares MSCI India ETF (INDA)

Sun Pharma Advanced Research Co. Ltd. Business Overview & Revenue Model

Company DescriptionSun Pharma Advanced Research Company Limited, a biopharmaceutical company, engages in the research and development of pharmaceutical products in India and internationally. It develops new chemical and biological entities, and reformulated products with a therapeutic focus on oncology, neurodegeneration, ophthalmology, and dermatology. The company offers Elepsia, a formulation of levetiracetam that is an anti-epileptic agent to treat epilepsy disorder; and Xelpros, a latanoprost ophthalmic emulsion for the treatment of open-angle glaucoma or ocular hypertension. In addition, it is developing SDN-037, a formulation of difluprednate for the treatment of inflammation and pain associated with ocular surgery that is in phase 3 clinical trial; PDP-716 to treat glaucoma, which is in phase 3 clinical trial; phenobarbital sodium for the treatment of neonatal seizures; Vodobatinib (SCO-088) for the treatment of resistant chronic myelogenous leukemia that has completed a part A of the Phase 1 study; Vodobatinib (SCC-138), which is in phase 2 clinical trial to treat Parkinson's disease; SCD-044 for the treatment of psoriasis and atopic dermatitis that is in phase 2 clinical trial; and SCO-120 for the treatment of hormone receptor-positive, human epidermal receptor 2 negative, and metastatic breast cancer, which is in phase 1 clinical trial. Sun Pharma Advanced Research Company Limited has a collaboration agreement with Bioprojet SCR to develop an S1P receptor 1 agonist for autoimmune disorders; and HitGen Ltd. to identify small molecule leads for targets of interest. The company was incorporated in 2006 and is based in Mumbai, India. Sun Pharma Advanced Research Company Limited is a subsidiary of Shanghvi Finance Private Limited
How the Company Makes MoneySPARC generates revenue primarily through the licensing of its proprietary drug delivery technologies and new chemical entities to pharmaceutical companies. These licensing agreements typically involve upfront payments, milestone payments, and royalties on sales of the products developed using SPARC's technologies. Additionally, SPARC may engage in collaborative research partnerships which can provide funding and shared resources to further drug development projects. The company's revenue streams are significantly influenced by the successful advancement of its R&D pipeline, regulatory approvals, and the commercial success of its licensed products.

Sun Pharma Advanced Research Co. Ltd. Financial Statement Overview

Summary
Sun Pharma Advanced Research Co. Ltd. exhibits significant financial challenges, with persistent profitability and cash flow issues, compounded by a weak balance sheet. Negative equity and high leverage highlight financial risks, while inconsistent revenue and profitability metrics reflect operational volatility. The overall financial health of the company is concerning, with substantial improvements needed to address ongoing issues in profitability, liquidity, and financial stability.
Income Statement
30
Negative
Sun Pharma Advanced Research Co. Ltd. has experienced persistently negative EBIT and net income over the years, indicating significant profitability challenges. The gross profit margin is also volatile, with recent improvements not sufficient to offset historical losses. Revenue growth has been inconsistent, with declines in recent periods highlighting operational difficulties. Overall, the income statement reflects substantial profitability issues and inconsistent revenue performance.
Balance Sheet
25
Negative
The company's balance sheet shows a concerning financial structure with negative stockholders' equity, indicating potential insolvency risks. The debt-to-equity ratio cannot be calculated due to negative equity, but high levels of total debt relative to assets demonstrate significant leverage. Assets have decreased over time, suggesting potential liquidity constraints. Overall, the balance sheet highlights critical leverage and equity challenges, posing risks to financial stability.
Cash Flow
35
Negative
Sun Pharma Advanced Research Co. Ltd. has faced negative operating and free cash flows consistently, indicating cash constraints and operational inefficiencies. There is a lack of positive cash flow from operations, leading to reliance on external financing. Despite some improvements in cash management, the persistent negative free cash flow underscores ongoing cash flow challenges, affecting the company's ability to sustain operations without additional funding.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2021Dec 2021
Income Statement
Total Revenue717.70M717.70M755.45M2.31B2.53B1.37B
Gross Profit486.50M486.50M-1.24B592.00M465.55M105.52M
EBITDA-3.21B-3.23B-3.73B-2.03B-1.30B-1.80B
Net Income-3.43B-3.43B-3.87B-2.23B-1.51B-2.03B
Balance Sheet
Total Assets3.36B3.36B5.15B8.30B2.30B2.80B
Cash, Cash Equivalents and Short-Term Investments19.60M19.60M1.57B4.07B157.30M128.89M
Total Debt2.69B2.69B611.51M156.70M2.36B792.14M
Total Liabilities5.52B5.52B3.89B3.17B3.98B2.49B
Stockholders Equity-2.17B-2.17B1.26B5.13B-1.68B312.26M
Cash Flow
Free Cash Flow0.00-3.71B-4.56B-845.10M-1.58B-2.41B
Operating Cash Flow0.00-3.60B-4.29B-691.20M-1.52B-2.08B
Investing Cash Flow0.001.58B3.92B-5.48B15.62M-291.67M
Financing Cash Flow0.001.99B424.05M6.17B1.59B2.29B

Sun Pharma Advanced Research Co. Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price131.85
Price Trends
50DMA
145.08
Negative
100DMA
153.63
Negative
200DMA
157.13
Negative
Market Momentum
MACD
-3.24
Positive
RSI
23.81
Positive
STOCH
4.98
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SPARC, the sentiment is Negative. The current price of 131.85 is below the 20-day moving average (MA) of 141.40, below the 50-day MA of 145.08, and below the 200-day MA of 157.13, indicating a bearish trend. The MACD of -3.24 indicates Positive momentum. The RSI at 23.81 is Positive, neither overbought nor oversold. The STOCH value of 4.98 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:SPARC.

Sun Pharma Advanced Research Co. Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
68
Neutral
₹56.41B31.6818.86%0.14%13.68%31.69%
62
Neutral
₹42.90B22.7212.28%0.21%-0.03%21.33%
59
Neutral
₹59.44B55.8516.74%1.87%21.82%36.97%
41
Neutral
₹42.79B-5.57%23.03%
51
Neutral
$7.86B-0.30-43.30%2.27%22.53%-2.21%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IN:SPARC
Sun Pharma Advanced Research Co. Ltd.
129.00
-86.90
-40.25%
IN:AARTIDRUGS
Aarti Drugs Limited
470.00
-41.84
-8.17%
IN:RPGLIFE
RPG Life Sciences Limited
2,244.70
-86.04
-3.69%
IN:SUPRIYA
Supriya Lifescience Limited
722.90
160.55
28.55%
IN:SUVEN
Suven Life Sciences Limited
209.35
68.70
48.84%
IN:THYROCARE
Thyrocare Technologies Ltd
1,183.70
384.74
48.16%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Sep 19, 2025