Sun Pharmaceutical Industries Limited (IN:SUNPHARMA)
:SUNPHARMA
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Sun Pharmaceutical Industries Limited
(SUNPHARMA)
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Rating:76Outperform
Price Target:
₹2,085.00
▲(20.51% Upside)
Action:Reiterated
Date:05/24/26
The score is driven primarily by strong financial fundamentals (profitability and very low leverage), supported by a positive technical trend. The main constraint is valuation, with a higher P/E and a modest dividend yield, plus monitoring needed for recent gross-margin pressure and uneven operating cash conversion.
Positive Factors
Conservative balance sheet
Sun Pharma's low leverage (debt-to-equity roughly ~3%–12% historically and ~5.5% in the latest year) indicates durable financial flexibility. This conservative capital structure supports funding R&D, m&a, or downturns without forcing dilutive financing, preserving strategic optionality.
Negative Factors
Sharp gross-margin decline
A steep gross-margin drop (from ~78% to ~56.7%) signals structural headwinds like pricing pressure, cost inflation, or adverse product-mix shifts. Such a material margin contraction can persistently compress operating leverage and limit room for investment or margin restoration without strategic actions.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Sun Pharma's low leverage (debt-to-equity roughly ~3%–12% historically and ~5.5% in the latest year) indicates durable financial flexibility. This conservative capital structure supports funding R&D, m&a, or downturns without forcing dilutive financing, preserving strategic optionality.
Read all positive factors
Sun Pharmaceutical Industries Limited (SUNPHARMA) vs. iShares MSCI India ETF (INDA)
Market Cap
₹4.38T
Dividend Yield0.91%
Average Volume (3M)102.58K
Price to Earnings (P/E)38.2
Beta (1Y)0.55
Revenue Growth11.19%
EPS Growth5.01%
CountryIN
Employees43,000
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)43.60
Shares Outstanding2,399,278,300
10 Day Avg. Volume56,056
30 Day Avg. Volume102,581
Financial Highlights & Ratios
PEG Ratio7.62
Price to Book (P/B)5.05
Price to Sales (P/S)7.22
P/FCF Ratio45.66
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)55.23
Revenue Forecast (FY)₹650.56B
Sun Pharmaceutical Industries Limited Business Overview & Revenue Model
Company Description
Sun Pharmaceutical Industries Limited, a leading generic pharmaceutical enterprise, is dedicated to the research, development, production, and marketing of both proprietary and unbranded medicinal formulations, alongside active pharmaceutical ingr...
How the Company Makes Money
Sun Pharma makes money primarily by selling pharmaceutical products (finished dosage forms) to wholesalers, distributors, pharmacies, hospitals, and government/private healthcare channels in India and international markets. A major revenue stream ...
Sun Pharmaceutical Industries Limited Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
88
Very Positive
Cash Flow
78
Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 549.64B | 584.62B | 525.78B | 484.97B | 438.86B | 386.54B |
| Gross Profit | 359.81B | 325.62B | 410.20B | 370.55B | 325.67B | 277.78B |
| EBITDA | 165.30B | 183.40B | 149.68B | 128.76B | 116.51B | 101.54B |
| Net Income | 104.50B | 114.79B | 109.29B | 95.76B | 84.74B | 32.73B |
Balance Sheet | ||||||
| Total Assets | 1.04T | 1.09T | 921.01B | 854.63B | 807.44B | 698.00B |
| Cash, Cash Equivalents and Short-Term Investments | 278.80B | 325.37B | 249.88B | 190.90B | 159.07B | 126.55B |
| Total Debt | 52.15B | 45.96B | 23.62B | 32.74B | 68.90B | 12.90B |
| Total Liabilities | 255.80B | 249.05B | 196.15B | 183.57B | 214.28B | 187.34B |
| Stockholders Equity | 778.20B | 835.70B | 722.18B | 636.67B | 559.95B | 480.11B |
Cash Flow | ||||||
| Free Cash Flow | 23.93B | 92.42B | 119.44B | 99.33B | 28.74B | 74.89B |
| Operating Cash Flow | 47.81B | 128.52B | 140.72B | 121.35B | 49.59B | 89.85B |
| Investing Cash Flow | -66.91B | -121.08B | -53.06B | -6.90B | -79.44B | -57.25B |
| Financing Cash Flow | 11.01B | -21.81B | -79.06B | -67.10B | 23.76B | -51.93B |
Sun Pharmaceutical Industries Limited Technical Analysis
Positive
1730.15
Price Trends
1787.03
Positive
1755.81
Positive
1721.57
Positive
Market Momentum
2.79
Negative
58.90
Neutral
91.71
Negative
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 below the 20-day moving average (MA) of 1807.80, below the 50-day MA of 1787.03, and above the 200-day MA of 1721.57, indicating a bullish trend. The MACD of 2.79 indicates Negative momentum. The RSI at 58.90 is Neutral, neither overbought nor oversold. The STOCH value of 91.71 is Negative, 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
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | ₹4.38T | 38.18 | ― | 0.91% | 11.19% | 5.01% | |
73 Outperform | ₹1.06T | 19.94 | ― | 0.57% | 23.12% | 62.27% | |
71 Outperform | ₹1.50T | 69.46 | ― | 0.84% | 21.40% | 13.19% | |
68 Neutral | ₹838.13B | 23.93 | ― | 0.33% | 6.08% | 0.77% | |
67 Neutral | ₹1.06T | 24.66 | ― | 0.63% | 3.19% | -24.30% | |
64 Neutral | ₹1.08T | 21.44 | ― | 1.19% | 16.81% | 11.38% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
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Sun Pharmaceutical Industries Limited Corporate Events
Sun Pharma shareholders approve postal ballot, appoint new independent director
May 8, 2026
Sun Pharmaceutical Industries Limited has completed a postal ballot process initiated in early April 2026, using remote e-voting to seek shareholder approval on a key governance resolution. The company reported that the resolution received the req...
Sun Pharma Releases Investor Call Transcript on Organon Business Acquisition
May 5, 2026
Sun Pharmaceutical Industries Limited has notified the stock exchanges that it has held an investor conference call regarding its acquisition of Organon’s business and has made the call transcript available. The company will upload the trans...
Sun Pharma to Buy Organon in US$ 11.75 Billion All‑Cash Deal
Apr 27, 2026
Sun Pharmaceutical Industries has signed a definitive agreement to acquire U.S.‑listed Organon Co. in an all‑cash transaction valuing Organon at an enterprise value of US$ 11.75 billion, with shareholders receiving US$ 14.00 per share...
Sun Pharma to Host Investor Call on Organon Acquisition
Apr 27, 2026
Sun Pharmaceutical Industries has scheduled an investor call on April 27, 2026, at 8:00 a.m. IST to discuss its planned acquisition of Organon Co., signaling a potentially significant expansion of its portfolio and global footprint. Senior manage...
Sun Pharma Shares Investor Presentation on Global Transformation Strategy
Apr 27, 2026
Sun Pharmaceutical Industries Limited has notified the stock exchanges that it has prepared and shared an investor presentation, in line with Indian listing regulations. The presentation, titled around accelerating Sun Pharma’s transformatio...
Sun Pharma Shareholders Clear Postal Ballot Resolutions, Renew Independent Director
Apr 17, 2026
Sun Pharmaceutical Industries Limited has concluded a postal ballot process initiated in March 2026, with shareholders approving all resolutions proposed by the board. The approvals reflect continued shareholder support for the company’s gov...
Sun Pharma Publishes Postal Ballot and E-Voting Notices for Shareholders
Apr 8, 2026
Sun Pharmaceutical Industries Limited has notified the stock exchanges that it has published newspaper advertisements in all editions of the Financial Express in English and the Ahmedabad edition in Gujarati. These advertisements provide informati...
Sun Pharma, Philogen Advance Nidlegy After Mixed Fibromun Trial Results
Mar 27, 2026
Sun Pharmaceutical Industries, in collaboration with partner Philogen, reported mixed clinical outcomes for its oncology candidate Fibromun, with Phase II trials in last-line soft tissue sarcoma and second-line glioblastoma failing to meet primary...
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.