Sun Pharmaceutical Industries Limited (SUNPHARMA) AI Stock Analysis

• Market Cap: ₹4.20T
• Dividend Yield: 0.91%
• Average Volume (3M): 102.58K
• Price to Earnings (P/E): 30.6
• Beta (1Y): 0.77
• Revenue Growth: 9.26%
• EPS Growth: -5.47%
• Country: IN
• Employees: 43,000
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 14.70
• Shares Outstanding: 2,399,278,300
• 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): 7.74
• 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: ₹1,916.33
• Price Target Upside: 10.76% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 49.89
• Revenue Forecast (FY): ₹581.05B

• Rating: 73 Outperform
• Price Target: ₹1,778.00 ▲(2.77% Upside)
• Action: Upgraded Date: 11/28/25
• Date: Action: Upgraded 11/28/25

Sun Pharmaceutical Industries Limited's overall stock score is driven by its strong financial performance, characterized by robust profitability and effective cost management. Technical analysis shows bullish momentum, although overbought signals suggest caution. The valuation indicates potential overvaluation, which slightly offsets the positive financial outlook.

Positive Factors

Low Leverage / Strong Balance Sheet

A very low debt-to-equity ratio provides durable financial flexibility to fund R&D, capital spending, acquisitions, or weather pricing cycles without stressing liquidity. This structural strength reduces refinancing risk and supports multi-quarter investment in specialty and complex portfolios.

Robust Cash Generation

Solid free cash flow growth and high conversion of earnings into cash enable self-funding of capacity expansion, pipeline development, and shareholder returns. Durable cash generation lowers reliance on external capital and supports medium-term execution of strategy in regulated markets.

Improving Profitability and Margins

Sustained margin expansion alongside revenue growth implies structural cost advantages, pricing power in branded/specialty segments, and operational efficiency. Higher margins underpin resilient cash flows and provide resources for reinvesting in higher‑value specialty drugs over several quarters.

Negative Factors

Negative EPS Growth

Declining EPS despite revenue gains points to margin dilution, higher costs, or non-operating impacts that depress per‑share earnings. Persisting EPS weakness can limit per-share returns, reduce flexibility for buybacks/dividends, and signal operational or capital allocation issues over the medium term.

Exposure to Price-Driven Generics Markets

Large exposure to commoditized generics—where competition is primarily on price and supply—constitutes a structural margin risk. Sustained price erosion in developed markets can compress returns unless offset by scale, cost leadership, or growth in differentiated specialty products.

Revenue Visibility Tied to Approval Timelines

Reliance on regulatory approvals and launch timing creates durable execution risk: delays or setbacks in key regulated markets can defer expected revenue and disrupt multi-quarter growth plans. Consistent pipeline delivery is critical to sustain medium-term revenue momentum.

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 a robust financial performance characterized by strong profitability, effective cost management, and prudent financial leverage. The company's consistent revenue and profit growth, solid balance sheet with low leverage, and efficient cash flow generation position 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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	537.77B	525.78B	484.97B	438.86B	386.54B	334.98B
Gross Profit	385.77B	410.20B	370.55B	325.67B	277.78B	242.80B
EBITDA	153.71B	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: 1730.15
• 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 1730.15 is above the 20-day moving average (MA) of 1722.80, above the 50-day MA of 1699.85, and above the 200-day MA of 1677.59, indicating a bullish trend. The MACD of 18.85 indicates Negative momentum. The RSI at 58.01 is Neutral, neither overbought nor oversold. The STOCH value of 50.84 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
DIVISLAB	74 Outperform	₹1.67T	72.71	―	0.46%	16.43%	35.35%
SUNPHARMA	73 Outperform	₹4.20T	30.62	―	0.91%	9.26%	-5.47%
LUPIN	72 Outperform	₹1.05T	20.49	―	0.57%	15.49%	64.37%
DRREDDY	70 Outperform	₹1.08T	21.88	―	0.63%	14.10%	9.72%
CIPLA	68 Neutral	₹1.09T	45.14	―	0.87%	6.93%	21.55%
TORNTPHARM	66 Neutral	₹1.47T	51.30	―	0.84%	9.11%	18.76%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Sun Pharmaceutical Industries Limited Corporate Events

Sun Pharma Publishes Q3 FY26 Unaudited Results Notice in Newspapers

Sun Pharmaceutical Industries Limited has notified the stock exchanges that it has published newspaper advertisements in the Financial Express (all editions) and the Vadodara edition of Loksatta Jansatta, providing information on its unaudited financial results for the quarter and nine months ended 31 December 2025. The company has also made copies of these newspaper clippings available on its website, underscoring its compliance with SEBI’s disclosure regulations and reinforcing transparency for investors and other stakeholders regarding its latest financial performance.

Sun Pharma Rolls Out UNLOXCYT in U.S. for Advanced Skin Cancer Patients

Sun Pharmaceutical Industries has launched UNLOXCYT (cosibelimab-ipdl) in the U.S. for adults with metastatic or locally advanced cutaneous squamous cell carcinoma who are not candidates for curative surgery or radiation, strengthening its presence in the oncology space. The treatment, described as an evolution in checkpoint inhibition, features a multifaceted mechanism of action as a novel anti–PD-L1 antibody, and its recently updated FDA label incorporates long-term clinical data showing durable efficacy, higher objective and complete response rates, and a stable safety profile, while the company is also rolling out the UNLOXCYT SUPPORT program to facilitate patient access and affordability from launch.

Sun Pharma’s Baska Facility Receives OAI Classification from US FDA

Sun Pharmaceutical Industries Limited announced that the US FDA has classified their Baska facility inspection status as Official Action Indicated (OAI) following an inspection conducted in September 2025. Despite the OAI classification, the company continues to manufacture and supply approved products to the US market and is actively working with the FDA to bring the facility into full compliance, which highlights their commitment to meeting regulatory standards and ensuring uninterrupted supply to stakeholders.

Sun Pharma to Invest INR 3,000 Crores in New Manufacturing Facility

Sun Pharmaceutical Industries Limited announced that its wholly-owned subsidiary, Sun Pharma Laboratories Limited, has approved a significant investment of INR 3,000 crores to establish a new greenfield formulations manufacturing facility in Madhya Pradesh. This strategic move is expected to enhance the company’s manufacturing capabilities and strengthen its position in the pharmaceutical industry, potentially impacting stakeholders by expanding production capacity and creating new opportunities in the market.