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Sun Pharmaceutical Industries Limited
(SUNPHARMA)
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Rating:69Neutral
Price Target:
₹2,081.00
▲(8.56% Upside)
Action:Downgraded
Date:08/24/26
The score is primarily supported by strong underlying financial performance (healthy profitability and very low leverage), but is tempered by notable gross margin pressure and consistently weaker operating cash flow versus earnings. Near-term technical indicators are soft (negative MACD, RSI below 50, price below short-term averages), and valuation is demanding (P/E ~37.7) with a low dividend yield, which together limit the overall rating.
Positive Factors
Multi-year revenue growth
Sustained revenue growth indicates continued demand across Sun Pharma’s branded generics, generics, and specialty portfolio. Its diversified therapeutic and geographic presence can support durable expansion and reduce reliance on any single market.
Negative Factors
Sharp gross margin pressure
The steep gross-margin decline signals potential cost, product-mix, pricing, or competitive pressure. If persistent, it could constrain reinvestment capacity and weaken the earnings contribution from otherwise healthy revenue growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Multi-year revenue growth
Sustained revenue growth indicates continued demand across Sun Pharma’s branded generics, generics, and specialty portfolio. Its diversified therapeutic and geographic presence can support durable expansion and reduce reliance on any single market.
Read all positive factors
Sun Pharmaceutical Industries Limited (SUNPHARMA) vs. iShares MSCI India ETF (INDA)
Market Cap
₹4.56T
Dividend Yield0.84%
Average Volume (3M)218.82K
Price to Earnings (P/E)37.7
Beta (1Y)0.50
Revenue Growth11.41%
EPS Growth16.62%
CountryIN
Employees47,000
SectorGeneral
Sector StrengthN/A
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)50.41
Shares Outstanding2,399,278,300
10 Day Avg. Volume132,907
30 Day Avg. Volume218,821
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)53.88
Revenue Forecast (FY)₹648.39B
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 formulations and, to a lesser extent, active pharmaceutical ingredients) in India and in international markets. Its major revenue streams typically include: (1) B...
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 | 599.11B | 584.62B | 525.78B | 484.97B | 438.86B | 386.54B |
| Gross Profit | 333.98B | 325.62B | 410.20B | 370.55B | 325.67B | 277.78B |
| EBITDA | 186.97B | 183.40B | 149.68B | 128.76B | 116.51B | 101.54B |
| Net Income | 120.96B | 114.79B | 109.29B | 95.76B | 84.74B | 32.73B |
Balance Sheet | ||||||
| Total Assets | 0.00 | 1.09T | 921.01B | 854.63B | 807.44B | 698.00B |
| Cash, Cash Equivalents and Short-Term Investments | 335.17B | 325.37B | 249.88B | 190.90B | 159.07B | 126.55B |
| Total Debt | 0.00 | 46.27B | 23.62B | 32.74B | 68.90B | 12.90B |
| Total Liabilities | -838.80B | 249.05B | 196.15B | 183.57B | 214.28B | 187.34B |
| Stockholders Equity | 838.80B | 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
Neutral
1917.00
Price Trends
1927.80
Negative
1862.36
Positive
1795.92
Positive
Market Momentum
-3.48
Positive
44.22
Neutral
27.52
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SUNPHARMA, the sentiment is Neutral. The current price of 1917 is above the 20-day moving average (MA) of 1916.26, below the 50-day MA of 1927.80, and above the 200-day MA of 1795.92, indicating a neutral trend. The MACD of -3.48 indicates Positive momentum. The RSI at 44.22 is Neutral, neither overbought nor oversold. The STOCH value of 27.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:SUNPHARMA.
Sun Pharmaceutical Industries Limited Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | ₹962.74B | 28.98 | ― | 0.69% | -0.92% | -41.75% | |
69 Neutral | ₹4.56T | 37.67 | ― | 0.84% | 11.41% | 16.62% | |
69 Neutral | ₹951.27B | 25.83 | ― | 0.24% | 9.09% | 9.61% | |
69 Neutral | ₹965.29B | 17.44 | ― | 0.85% | 28.19% | 49.25% | |
63 Neutral | ₹1.84T | 75.37 | ― | 0.31% | 32.85% | 8.94% | |
57 Neutral | ₹1.12T | 24.96 | ― | 0.09% | 21.11% | -1.28% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
IN:SUNPHARMA
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Sun Pharmaceutical Industries Limited Corporate Events
Sun Pharma Wins Key U.S. Appeal in Lipitor Antitrust Case
Aug 17, 2026
Sun Pharmaceutical Industries Limited and certain subsidiaries have been involved in U.S. antitrust litigation tied to a 2008 patent settlement with Pfizer over generic Lipitor, where plaintiffs claimed the agreement delayed competition and later ...
Sun Pharma Shareholders Clear All Resolutions at 34th AGM, Approve Dividend and Board Changes
Jul 31, 2026
Sun Pharmaceutical Industries Limited convened its 34th Annual General Meeting on July 31, 2026 via video conferencing in line with Indian corporate governance regulations. The meeting was chaired by Executive Chairman Dilip Shanghvi, with all dir...
Sun Pharma’s Partner Philogen Resubmits EMA Application for Melanoma Drug Nidlegy
Jul 27, 2026
Sun Pharmaceutical Industries Limited has notified exchanges that its partner Philogen has resubmitted an updated Marketing Authorization Application to the European Medicines Agency for Nidlegy, an investigational neoadjuvant treatment for locall...
Sun Pharma Clears Key Hurdle as Organon Shareholders Approve Acquisition
Jul 24, 2026
Sun Pharma said shareholders of Organon Co. have approved proposals related to a previously announced merger in which Organon is expected to become a wholly owned subsidiary of Sun Pharmaceutical Holdings USA, an indirect unit of Sun Pharma. The ...
Sun Pharma wins South African nod for generic semaglutide
Jul 15, 2026
Sun Pharma has received approval from the South African Health Products Regulatory Authority to manufacture and market a generic semaglutide injection for adults with inadequately controlled type 2 diabetes, as an adjunct to diet and exercise. The...
Sun Pharma to Acquire Innovcare Lifesciences for Rs 271 Crore
Jun 20, 2026
Sun Pharmaceutical Industries Limited has agreed to acquire 100% of Innovcare Lifesciences Private Limited, a Mumbai-based firm engaged in marketing, distributing and selling pharmaceutical drugs, nutraceuticals and cosmeceuticals, for a cash cons...
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.