Sun Pharmaceutical Industries Limited (SUNPHARMA) AI Stock Analysis

• Market Cap: ₹4.05T
• Dividend Yield: 0.93%
• Average Volume (3M): 102.58K
• Price to Earnings (P/E): 38.8
• Beta (1Y): 0.70
• Revenue Growth: 9.28%
• EPS Growth: -0.17%
• Country: IN
• Employees: 43,000
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 12.00
• Shares Outstanding: 2,399,276,400
• 10 Day Avg. Volume: 56,056
• 30 Day Avg. Volume: 102,581
• PEG Ratio: 2.61
• Price to Book (P/B): 5.64
• Price to Sales (P/S): 7.82
• P/FCF Ratio: 34.08
• 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: ₹1,963.29
• Price Target Upside: 14.38% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7

• Rating: 69 Neutral
• Price Target: ₹1,792.00 ▲(4.40% Upside)

Sun Pharmaceutical Industries Limited's overall stock score is driven primarily by its strong financial performance, characterized by robust profitability and efficient cash flow management. However, the technical analysis suggests mixed momentum, and the valuation indicates potential overvaluation, which tempers the overall score.

Sun Pharmaceutical Industries Limited Business Overview & Revenue Model

Company Description

Sun Pharmaceutical Industries Limited, a generic pharmaceutical company, develops, manufactures, and markets branded and generic formulations and active pharmaceutical ingredients (APIs) in India and internationally. The company offers formulations in various therapeutic areas, including central nervous system, dermatology, cardiology, oncology and ophthalmic, neuro-psychiatry, gastroenterology, anti-infectives, diabetology, pain/analgesics, vitamins/minerals/nutrients, respiratory, gynaecology, urology, ophthalmology, orthopaedic, nephrology, dental, and other areas. It also provides APIs for anti-cancers, peptides, steroids, sex hormones, and controlled substances; generic medications, such as tablets, capsules, injectables, inhalers, ointments, creams, and liquids; speciality medications, as well as over-the-counter products. The company was founded in 1983 and is based in Mumbai, India.

How the Company Makes Money

Sun Pharmaceutical Industries Limited generates revenue primarily through the sale of its pharmaceutical products, which includes branded medications, generic drugs, and specialty products. The company has a robust revenue model that is supported by its extensive research and development capabilities, leading to the introduction of new products. Key revenue streams include prescription drugs sold to healthcare providers and pharmacies, over-the-counter products, and contracts with governments and healthcare organizations. Additionally, SUNPHARMA benefits from strategic partnerships and collaborations with other pharmaceutical companies and research institutions, which facilitate the development of new therapies and access to new markets. The company's strong global distribution network and regulatory compliance also contribute significantly to its earnings.

Sun Pharmaceutical Industries Limited Financial Statement Overview

Summary

Sun Pharmaceutical Industries Limited demonstrates robust financial performance with strong profitability, effective cost management, and prudent financial leverage. The company shows consistent revenue and profit growth, a solid balance sheet with low leverage, and efficient cash flow generation, positioning it well for future growth and stability.

Income Statement

Sun Pharmaceutical Industries Limited shows strong profitability with a consistent increase in gross profit margin from 67.0% in 2021 to 55.7% in 2025, and a net profit margin rising from 8.8% in 2021 to 20.8% in 2025. The revenue growth rate has been robust, particularly a 10.1% increase from 2024 to 2025. EBIT and EBITDA margins have also improved, indicating efficient operations and cost management.

Balance Sheet

The company maintains a solid financial position with a low debt-to-equity ratio of 0.03 in 2025, down from 0.08 in 2021, showcasing financial stability and prudent debt management. Return on Equity (ROE) has improved significantly to 15.1% in 2025, reflecting strong shareholder returns. The equity ratio has remained stable, indicating a good balance between equity and assets.

Cash Flow

Sun Pharma exhibits healthy cash flow metrics with a notable increase in free cash flow by 20.2% from 2024 to 2025. The operating cash flow to net income ratio is 1.29 in 2025, indicating strong cash generation relative to profits. The free cash flow to net income ratio of 1.09 in 2025 underscores effective cash management and capacity to fund growth.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	537.77B	525.78B	484.97B	438.86B	386.54B	334.98B
Gross Profit	420.79B	410.20B	370.55B	325.67B	277.78B	242.80B
EBITDA	153.85B	149.68B	128.76B	116.51B	101.54B	83.45B
Net Income	103.72B	109.29B	95.76B	84.74B	32.73B	29.04B
Balance Sheet
Total Assets	0.00	921.01B	854.63B	807.44B	698.00B	676.67B
Cash, Cash Equivalents and Short-Term Investments	261.23B	249.88B	190.90B	159.07B	126.55B	95.63B
Total Debt	0.00	23.62B	32.74B	68.90B	12.90B	38.69B
Total Liabilities	-724.86B	196.15B	183.57B	214.28B	187.34B	181.87B
Stockholders Equity	724.86B	722.18B	636.67B	559.95B	480.11B	464.63B
Cash Flow
Free Cash Flow	0.00	119.44B	99.33B	28.74B	74.89B	50.00B
Operating Cash Flow	0.00	140.72B	121.35B	49.59B	89.85B	61.70B
Investing Cash Flow	0.00	-53.06B	-6.90B	-79.44B	-57.25B	5.36B
Financing Cash Flow	0.00	-79.06B	-67.10B	23.76B	-51.93B	-59.80B

Sun Pharmaceutical Industries Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1716.40
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SUNPHARMA, the sentiment is Positive. The current price of 1716.4 is above the 20-day moving average (MA) of 1665.74, above the 50-day MA of 1633.07, and above the 200-day MA of 1683.24, indicating a bullish trend. The MACD of 19.87 indicates Negative momentum. The RSI at 67.70 is Neutral, neither overbought nor oversold. The STOCH value of 76.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:SUNPHARMA.

Sun Pharmaceutical Industries Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DRREDDY	―	₹1.05T	18.44	―	0.64%	14.10%	9.72%
CIPLA	―	₹1.27T	23.63	―	0.83%	6.40%	25.27%
LUPIN	―	₹893.78B	23.70	―	0.61%	12.40%	63.16%
SUNPHARMA	―	₹4.05T	38.84	―	0.93%	9.28%	-0.17%
TORNTPHARM	―	₹1.22T	60.49	―	0.89%	7.63%	15.39%
DIVISLAB	―	₹1.73T	74.05	―	0.46%	17.92%	37.75%
Sector *	―	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Sun Pharmaceutical Industries Limited Corporate Events

Sun Pharma’s Composite Scheme of Arrangement Approved by NCLT

Sun Pharmaceutical Industries Limited has received approval from the National Company Law Tribunal (NCLT) for its Composite Scheme of Arrangement. This scheme involves the amalgamation of several wholly-owned subsidiaries with Sun Pharmaceutical and the reclassification of the company’s General Reserve to Retained Earnings. This approval is expected to streamline operations and enhance financial efficiency, potentially impacting the company’s market positioning and shareholder value positively.

Sun Pharma’s Sonidegib Study Completion: A Boost for Oncology Market Presence

Study Overview: Sun Pharmaceutical Industries Limited, in collaboration with Jemincare and Zhejiang Hangyu Pharmaceutical Co., Ltd., recently completed a Phase IV clinical study titled A Prospective, Open-Label, Single-Arm, Multi-Center, Phase IV Efficacy and Safety Study of Sonidegib in Adult Patients With Locally Advanced Basal Cell Carcinoma (laBCC) in China. The study aimed to assess the efficacy and safety of Sonidegib in Chinese patients with laBCC who cannot undergo radiation, surgery, or other local treatments.

Sun Pharma’s Halol Facility Faces FDA Compliance Challenges

Sun Pharmaceutical Industries Limited announced that the U.S. FDA has classified its Halol facility as ‘Official Action Indicated’ (OAI) following an inspection. This classification indicates non-compliance with certain current good manufacturing practices, resulting in an Import Alert that restricts shipments from the facility to the US, except for certain exemptions due to drug shortages. Sun Pharma is committed to resolving these issues and maintaining compliance to continue providing high-quality medicines worldwide.

Sun Pharma Announces Q1 Financials and Board Restructuring

Sun Pharmaceutical Industries Limited announced the approval of its unaudited standalone and consolidated financial results for the first quarter of the fiscal year 2025-26. The company also revealed significant changes in the composition of its board committees, with new appointments and retirements, indicating a strategic realignment in its governance structure. These developments are expected to impact the company’s operational dynamics and potentially influence its strategic direction in the pharmaceutical industry.