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

• Market Cap: ₹44.39B
• Dividend Yield: N/A
• Average Volume (3M): 24.00K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.58
• Revenue Growth: -0.82%
• EPS Growth: 34.67%
• Country: IN
• Employees: 409
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -2.34
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 41 Neutral
• Price Target: ₹127.00 ▼(-4.90% Downside)

The overall stock score is primarily driven by significant financial performance challenges, including persistent profitability and cash flow issues, compounded by a weak balance sheet. Technical analysis indicates a bearish trend, further impacting the score. Valuation metrics are unfavorable due to a negative P/E ratio and lack of dividend yield, reflecting the company's financial difficulties.

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

Company Description

Sun Pharma Advanced Research Company Ltd. (SPARC) is a leading research-driven pharmaceutical company based in India, specializing in the development of differentiated formulations, complex generics, and novel drug delivery systems. A subsidiary of Sun Pharmaceutical Industries Ltd., SPARC focuses on innovative research that supports the development of new therapies and enhances the existing product portfolio, primarily in therapeutic areas such as oncology, neurology, and dermatology. The company leverages advanced research capabilities and state-of-the-art technology to bring high-quality products to market.

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: 133.55
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 133.55 is below the 20-day moving average (MA) of 134.44, below the 50-day MA of 134.55, and below the 200-day MA of 145.94, indicating a bearish trend. The MACD of -0.31 indicates Negative momentum. The RSI at 48.48 is Neutral, neither overbought nor oversold. The STOCH value of 33.02 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
SUPRIYA	75 Outperform	₹60.03B	32.91	―	0.13%	14.35%	15.79%
THYROCARE	74 Outperform	₹77.82B	60.85	―	1.91%	22.36%	52.00%
AARTIDRUGS	62 Neutral	₹39.28B	19.73	―	0.23%	4.08%	31.52%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
SPARC	41 Neutral	₹44.39B	-14.87	―	―	-0.82%	34.67%

Sun Pharma Advanced Research Co. Ltd. Corporate Events

Sun Pharma’s SBO-154: A New Hope for Advanced Cancer Treatment?

Sun Pharma Advanced Research Co. Ltd. is conducting a Phase 1 study titled ‘A Phase 1, Multicentre, Open-label, Multiple-dose Study to Determine Safety, Tolerability, and Preliminary Efficacy of SBO-154 in Subjects With Advanced Solid Tumors.’ The study aims to assess the safety and tolerability of SBO-154 in patients with advanced cancers who have not responded to standard treatments.