Sun Pharmaceutical Industries Limited (SUNPHARMA) AI Stock Analysis

• Market Cap: ₹3.97T
• Dividend Yield: 0.97%
• Average Volume (3M): 91.04K
• Price to Earnings (P/E): 38.1
• Beta (1Y): 0.66
• 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: 117,029
• 30 Day Avg. Volume: 91,042
• 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: ₹1,958.25
• Price Target Upside: 18.25% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

• Rating: 73 Outperform
• Price Target: ₹1,816.00 ▲(9.66% Upside)

Sun Pharmaceutical Industries Limited's overall stock score is driven by its strong financial performance, characterized by robust profitability and low leverage. Technical analysis reveals some bearish momentum, which is a moderate concern. Valuation metrics suggest the stock could be overvalued, but the dividend yield offers some compensation for this risk.

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. The company's revenue model is largely driven by its diverse portfolio of generics and branded generics, which are sold across various therapeutic categories. Revenue streams include sales from specialty pharmaceuticals, which often command higher prices and margins due to their complex manufacturing processes and targeted therapeutic applications. Additionally, Sun Pharma earns income from the sale of APIs to other pharmaceutical companies. The company's earnings are further supported by strategic acquisitions and partnerships that expand its market reach and product offerings. Sun Pharma's strong presence in both emerging and developed markets allows it to capitalize on the growing demand for affordable and accessible medications.

Sun Pharmaceutical Industries Limited Financial Statement Overview

Summary

Sun Pharmaceutical Industries Limited demonstrates a 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	534.73B	520.41B	477.58B	438.86B	386.54B	334.98B
Gross Profit	394.83B	283.81B	356.89B	326.17B	167.31B	232.54B
EBITDA	158.04B	165.59B	138.36B	120.85B	67.00B	49.99B
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: Neutral
• Last Price: 1656.05
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 1656.05 is above the 20-day moving average (MA) of 1604.92, above the 50-day MA of 1639.39, and below the 200-day MA of 1703.54, indicating a neutral trend. The MACD of 0.31 indicates Negative momentum. The RSI at 60.92 is Neutral, neither overbought nor oversold. The STOCH value of 93.23 is Negative, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DRREDDY	76 Outperform	1.10T	19.42	16.23%	0.60%	15.86%	2.02%
SUNPHARMA	73 Outperform	₹3.97T	38.14		0.97%	9.28%	-0.17%
CIPLA	73 Outperform	1.27T	23.60	16.90%	0.83%	6.40%	25.27%
TORNTPHARM	73 Outperform	1.23T	61.39	25.17%	0.88%	7.63%	15.39%
LUPIN	72 Outperform	939.18B	25.36	19.08%	0.58%	12.40%	63.16%
DIVISLAB	68 Neutral	1.65T	71.36	14.64%	0.48%	17.92%	37.75%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Sun Pharmaceutical Industries Limited Corporate Events

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.

Philogen Withdraws Nidlegy™ Application, Plans Resubmission

Philogen S.p.A, in partnership with Sun Pharmaceutical Industries Limited, has announced the withdrawal of its marketing authorization application for Nidlegy™, a treatment for locally advanced fully resectable melanoma, from the European Medicines Agency (EMA). The decision was made due to the timing of additional data required to better characterize the product’s benefit-risk profile. Despite this setback, Philogen remains optimistic about Nidlegy™’s efficacy and safety, and plans to resubmit an updated application. The withdrawal may delay the product’s availability but underscores the commitment to ensuring comprehensive data supports its approval, impacting stakeholders and the market positioning of both Philogen and Sun Pharma.

Sun Pharma Schedules Analyst and Investor Meeting

Sun Pharmaceutical Industries Limited has announced the schedule for an upcoming analyst and institutional investor meeting, which will take place in Mumbai on June 25, 2025. The meeting, part of the Nuvama Specialty Chemicals & Healthcare Day, will include both group and one-on-one sessions. The company has clarified that no unpublished price-sensitive information will be disclosed during these meetings, and the schedule is subject to change due to potential exigencies.