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

• Market Cap: ₹46.75B
• Dividend Yield: N/A
• Average Volume (3M): 20.93K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.51
• Revenue Growth: -5.57%
• EPS Growth: 23.03%
• Country: IN
• Employees: 409
• Sector: Healthcare
• Sector Strength: 51
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -1.60
• Shares Outstanding: 324,521,580
• 10 Day Avg. Volume: 15,938
• 30 Day Avg. Volume: 20,925
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ₹150.00
• Price Target Upside: 3.27% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 41 Neutral
• Price Target: ₹150.00 ▲(3.27% Upside)

The company's overall stock score is primarily influenced by significant financial challenges including persistent losses, negative equity, and high leverage, which pose substantial risks to financial stability. Negative technical indicators further emphasize a bearish outlook, with the stock trading below key moving averages. The negative P/E ratio and absence of dividend yield also detract from the stock's valuation appeal.

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

Company Description

Sun Pharma Advanced Research Company Ltd. (SPARC) is a pharmaceutical research and development company focused on creating novel drug delivery systems and new chemical entities. Operating within the pharmaceutical and healthcare sectors, SPARC is dedicated to advancing innovative therapies to address unmet medical needs. The company's core activities include the development of proprietary technology platforms and conducting clinical trials to bring new drugs to market.

How the Company Makes Money

SPARC 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

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 2021	Dec 2021
Income Statement
Total Revenue	717.70M	717.70M	755.45M	2.31B	2.53B	1.37B
Gross Profit	486.50M	486.50M	-1.24B	592.00M	465.55M	105.52M
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 Assets	3.36B	3.36B	5.15B	8.30B	2.30B	2.80B
Cash, Cash Equivalents and Short-Term Investments	19.60M	19.60M	1.57B	4.07B	157.30M	128.89M
Total Debt	2.69B	2.69B	611.51M	156.70M	2.36B	792.14M
Total Liabilities	5.52B	5.52B	3.89B	3.17B	3.98B	2.49B
Stockholders Equity	-2.17B	-2.17B	1.26B	5.13B	-1.68B	312.26M
Cash Flow
Free Cash Flow	0.00	-3.71B	-4.56B	-845.10M	-1.58B	-2.41B
Operating Cash Flow	0.00	-3.60B	-4.29B	-691.20M	-1.52B	-2.08B
Investing Cash Flow	0.00	1.58B	3.92B	-5.48B	15.62M	-291.67M
Financing Cash Flow	0.00	1.99B	424.05M	6.17B	1.59B	2.29B

Sun Pharma Advanced Research Co. Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 145.25
• 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 Neutral. The current price of 145.25 is above the 20-day moving average (MA) of 143.71, below the 50-day MA of 151.27, and below the 200-day MA of 162.54, indicating a neutral trend. The MACD of -1.83 indicates Negative momentum. The RSI at 48.25 is Neutral, neither overbought nor oversold. The STOCH value of 65.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
THYROCARE	69 Neutral	₹71.03B	64.85		1.58%	21.82%	36.97%
SUPRIYA	67 Neutral	₹52.77B	29.90		0.15%	13.68%	31.69%
AARTIDRUGS	65 Neutral	₹43.29B	22.93		0.21%	-0.03%	21.33%
Sector *	51 Neutral	$7.92B	-0.43	-41.67%	2.21%	22.29%	-1.85%
SPARC	41 Neutral	₹46.75B	―		―	-5.57%	23.03%
RPGLIFE	―	₹39.29B	21.45		0.84%	―	―
SUVEN	―	₹48.22B	―		―	―	―