Sun Pharma Advanced Research Co. Ltd. (IN:SPARC)
:SPARC
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Sun Pharma Advanced Research Co. Ltd.
(SPARC)
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Rating:57Neutral
Price Target:
₹213.00
▲(56.96% Upside)
Action:Reiterated
Date:05/26/26
The score is held back primarily by weak cash-flow quality (persistent negative operating and free cash flow despite FY2026 reported profitability) and a volatile multi-year financial history. Offsetting this are strong technical momentum (price well above key moving averages with positive MACD) and supportive valuation from a very low P/E, though momentum appears stretched.
Positive Factors
Out-licensing / milestone-driven revenue model
A partner-led, milestone-and-royalty business model lets SPARC advance assets without full commercialization capital, preserving cash and offering scalable upside as candidates hit development and approval milestones. Structurally this reduces fixed-cost exposure and leverages partners' commercial capabilities over time.
Negative Factors
Persistent negative operating and free cash flow
Consistent cash burn (OCF and FCF negative each year, OCF -2.73B and FCF -2.97B in FY2026) signals weak internal cash generation and creates ongoing funding needs. Over months, this elevates dilution or debt financing risk and undermines the durability of reported earnings absent sustained cash conversion or recurring partner payments.
Read all positive and negative factors
Positive Factors
Negative Factors
Out-licensing / milestone-driven revenue model
A partner-led, milestone-and-royalty business model lets SPARC advance assets without full commercialization capital, preserving cash and offering scalable upside as candidates hit development and approval milestones. Structurally this reduces fixed-cost exposure and leverages partners' commercial capabilities over time.
Read all positive factors
Sun Pharma Advanced Research Co. Ltd. (SPARC) vs. iShares MSCI India ETF (INDA)
Market Cap
₹77.14B
Dividend YieldN/A
Average Volume (3M)24.00K
Price to Earnings (P/E)5.1
Beta (1Y)1.76
Revenue Growth2518.32%
EPS GrowthN/A
CountryIN
Employees409
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)-8.23
Shares Outstanding324,521,580
10 Day Avg. Volume27,089
30 Day Avg. Volume24,005
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)2.78
Price to Sales (P/S)1.98
P/FCF Ratio-12.56
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Sun Pharma Advanced Research Co. Ltd. Business Overview & Revenue Model
Company Description
Sun Pharma Advanced Research Company Limited (SPARC), a biopharmaceutical firm established in Mumbai, India, in 2006 and operating as a subsidiary of Shanghvi Finance Private Limited, is globally committed to the discovery and advancement of innov...
How the Company Makes Money
SPARC primarily makes money through (1) out-licensing and partnering its drug candidates and technologies to other pharmaceutical companies and/or group entities for further development and commercialization, and (2) commercialization-related inco...
Sun Pharma Advanced Research Co. Ltd. Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
54
Neutral
Cash Flow
22
Negative
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 596.00M | 18.79B | 717.70M | 755.45M | 2.39B | 1.37B |
| Gross Profit | -12.40M | 17.27B | 486.50M | -1.24B | 821.21M | 105.52M |
| EBITDA | -2.35B | 15.99B | -3.23B | -3.73B | -2.03B | -1.80B |
| Net Income | -2.67B | 15.53B | -3.43B | -3.87B | -2.23B | -2.03B |
Balance Sheet | ||||||
| Total Assets | 3.22B | 21.71B | 3.36B | 5.15B | 8.30B | 2.80B |
| Cash, Cash Equivalents and Short-Term Investments | 30.00M | 26.20M | 19.60M | 1.57B | 4.07B | 128.89M |
| Total Debt | 4.17B | 5.59B | 2.69B | 611.51M | 156.70M | 792.14M |
| Total Liabilities | 6.67B | 8.32B | 5.52B | 3.89B | 3.17B | 2.49B |
| Stockholders Equity | -3.45B | 13.39B | -2.17B | 1.26B | 5.13B | 312.26M |
Cash Flow | ||||||
| Free Cash Flow | -1.39B | -2.97B | -3.71B | -4.56B | -845.10M | -2.41B |
| Operating Cash Flow | -1.16B | -2.73B | -3.60B | -4.29B | -691.20M | -2.08B |
| Investing Cash Flow | -231.00M | -235.30M | 1.58B | 3.92B | -5.48B | -291.67M |
| Financing Cash Flow | 1.38B | 2.96B | 1.99B | 424.05M | 6.17B | 2.29B |
Sun Pharma Advanced Research Co. Ltd. Technical Analysis
Positive
135.70
Price Trends
180.43
Positive
153.50
Positive
145.05
Positive
Market Momentum
16.28
Negative
67.54
Neutral
79.28
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SPARC, the sentiment is Positive. The current price of 135.7 is below the 20-day moving average (MA) of 218.92, below the 50-day MA of 180.43, and below the 200-day MA of 145.05, indicating a bullish trend. The MACD of 16.28 indicates Negative momentum. The RSI at 67.54 is Neutral, neither overbought nor oversold. The STOCH value of 79.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:SPARC.
Sun Pharma Advanced Research Co. Ltd. Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | ₹222.59B | 60.70 | ― | 0.08% | 36.98% | 39.94% | |
64 Neutral | ₹155.23B | 88.50 | ― | ― | 89.43% | -55.47% | |
60 Neutral | ₹211.42B | -61.93 | ― | 0.08% | -3.08% | -458.85% | |
57 Neutral | ₹77.14B | 5.07 | ― | ― | 2518.32% | ― | |
56 Neutral | ₹153.81B | 38.63 | ― | 0.46% | 14.45% | -52.50% | |
55 Neutral | ₹70.72B | -21.21 | ― | ― | 6.89% | -67.45% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
IN:SPARC
Sun Pharma Advanced Research Co. Ltd.
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80.85
51.55%
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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.