Sun Pharma Advanced Research Co. Ltd. (SPARC) AI Stock Analysis

• Market Cap: ₹40.99B
• Dividend Yield: N/A
• Average Volume (3M): 24.00K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.72
• Revenue Growth: -0.82%
• EPS Growth: 34.67%
• Country: IN
• Employees: 409
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): N/A
• Shares Outstanding: 324,521,580
• 10 Day Avg. Volume: 27,089
• 30 Day Avg. Volume: 24,005
• PEG Ratio: 1.20
• Price to Book (P/B): -21.89
• Price to Sales (P/S): 66.17
• P/FCF Ratio: -12.81
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 44 Neutral
• Price Target: ₹123.00 ▼(-9.36% Downside)

Sun Pharma Advanced Research Co. Ltd. faces significant financial challenges, with persistent profitability and cash flow issues, compounded by a weak balance sheet. The technical analysis indicates bullish momentum, but the high RSI suggests potential for a pullback. Valuation metrics are weak due to negative profitability and lack of dividends. Overall, the stock score reflects substantial financial risks and valuation concerns, with technical momentum providing some positive offset.

Positive Factors

R&D-focused business model

A core focus on discovering novel and specialty therapeutics builds a durable capability set: deep scientific expertise, clinical development know‑how, and IP generation. Over 2–6 months this supports partner interest and long‑term value creation through successful candidate progression.

Clear monetization pathways via partnering

A licensing and partnership model that yields upfronts, development milestones, and royalties can provide scalable, high-margin revenue as candidates advance. Structurally, this reduces need for full commercialization build‑out and aligns cash inflows to clinical progress over the medium term.

Focus on differentiated NCEs and formulations

Concentrating on differentiated NCEs and formulations in select therapy areas can create sustainable competitive advantages via patentable innovations and higher barriers to entry. This specialization supports durable partner interest and potential for premium pricing if commercialized.

Negative Factors

Negative shareholders' equity

Negative equity is a material structural weakness that constrains strategic flexibility and raises solvency concerns. It limits access to traditional financing, increases cost of capital, and can force dilutive financing or asset sales, undermining long‑term ability to fund R&D pipelines.

Consistent negative operating and free cash flow

Persistent negative operating and free cash flow creates a chronic funding gap for clinical programs. Over months this necessitates reliance on external financing or partners, risking dilution, delays in development timelines, or halted programs if capital access tightens.

Persistent unprofitability and revenue decline

Ongoing negative EBIT and net losses, combined with inconsistent or declining revenue, undermine internal ability to self‑fund development and reduce bargaining power with partners. Structural profitability weakness increases execution risk and dependence on external capital.

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

Company Description

Sun 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 Money

SPARC generates revenue through several key streams, primarily from the sale of proprietary pharmaceutical products developed through its extensive research initiatives. The company earns income from licensing agreements and collaborations with larger pharmaceutical firms for the commercialization of its innovative products. Additionally, SPARC engages in research partnerships and contract development services, providing its expertise and resources to support other companies in their drug development processes. The strategic partnerships with global pharmaceutical companies also contribute to its revenue, as they often involve milestone payments and royalties on product sales. Overall, SPARC's revenue model is built on its capacity to innovate, develop, and monetize its research outcomes effectively.

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

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

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

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.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	646.00M	717.70M	755.45M	2.39B	1.37B	2.53B
Gross Profit	927.40M	486.50M	-1.24B	821.21M	105.52M	465.55M
EBITDA	-2.72B	-3.23B	-3.73B	-2.03B	-1.80B	-1.30B
Net Income	-2.98B	-3.43B	-3.87B	-2.23B	-2.03B	-1.51B
Balance Sheet
Total Assets	0.00	3.36B	5.15B	8.30B	2.80B	2.30B
Cash, Cash Equivalents and Short-Term Investments	19.64M	19.60M	1.57B	4.07B	128.89M	157.30M
Total Debt	0.00	2.69B	611.51M	156.70M	792.14M	2.36B
Total Liabilities	2.17B	5.52B	3.89B	3.17B	2.49B	3.98B
Stockholders Equity	-2.17B	-2.17B	1.26B	5.13B	312.26M	-1.68B
Cash Flow
Free Cash Flow	0.00	-3.71B	-4.56B	-845.10M	-2.41B	-1.58B
Operating Cash Flow	0.00	-3.60B	-4.29B	-691.20M	-2.08B	-1.52B
Investing Cash Flow	0.00	1.58B	3.92B	-5.48B	-291.67M	15.62M
Financing Cash Flow	0.00	1.99B	424.05M	6.17B	2.29B	1.59B

Sun Pharma Advanced Research Co. Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 135.70
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 135.7 is above the 20-day moving average (MA) of 130.84, above the 50-day MA of 135.29, and below the 200-day MA of 145.10, indicating a bearish trend. The MACD of -3.03 indicates Positive momentum. The RSI at 40.64 is Neutral, neither overbought nor oversold. The STOCH value of 30.12 is Neutral, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RPGLIFE	76 Outperform	₹33.24B	16.40	―	0.85%	―	―
SUPRIYA	75 Outperform	₹54.44B	29.85	―	0.13%	14.35%	15.79%
THYROCARE	69 Neutral	₹66.74B	48.44	―	0.68%	22.36%	52.00%
AARTIDRUGS	57 Neutral	₹34.72B	17.44	―	0.24%	4.08%	31.52%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
SPARC	44 Neutral	₹40.99B	-15.35	―	―	-0.82%	34.67%
SUVEN	43 Neutral	₹30.21B	-10.76	―	―	―	―

Sun Pharma Advanced Research Co. Ltd. Corporate Events

Exchange Seeks Clarification After Surge in Sun Pharma Advanced Research Trading Volume

Trading in Sun Pharma Advanced Research Company Limited shares has seen a significant increase in volume, prompting the stock exchange to seek clarification from the company. The exchange has requested updated, relevant information to ensure market transparency and protect investor interests, and the market is awaiting the company’s response, which could clarify the reasons behind the unusual trading activity and its implications for shareholders.

Sun Pharma Advanced Research Publishes EGM Notice in Line with SEBI Disclosure Norms

Sun Pharma Advanced Research Company Limited has notified stock exchanges that it has published public notices convening an Extra Ordinary General Meeting (EGM) of shareholders through advertisements in multiple editions of the Financial Express in English and Gujarati. The company states that the advertisements follow the emailing of the EGM notice to shareholders whose email addresses are on record, and that these steps are in line with disclosure and publication requirements under SEBI’s Listing Obligations and Disclosure Requirements Regulations, underscoring SPARC’s adherence to regulatory norms and transparency in shareholder communication.

SPARC Calls February EGM to Approve Preferential Issue of Convertible Warrants

Sun Pharma Advanced Research Company Limited has called an extraordinary general meeting (EGM) of its shareholders on 9 February 2026, to be held via video conferencing, with remote e-voting scheduled between 5 and 8 February 2026. The key agenda item is a special resolution to approve the issue of convertible warrants on a preferential basis to a member of the company’s promoter group, a move that, if approved, would strengthen the company’s capital base, potentially increase promoter stake, and support future funding needs for its research-driven growth strategy, while also requiring compliance with a range of Indian corporate, securities, and foreign exchange regulations.