Sun Pharmaceutical Industries Ltd.
NSE: SUNPHARMASun Pharmaceutical Industries Ltd.: A 30-second snapshot
Sun Pharmaceutical Industries trades at ₹1,838.3, up 12.49% over 12 months and 5.38% over 3 months, sitting above both its 50-DMA (₹1,791) and 200-DMA (₹1,725) with RSI at 59. The stock commands a trailing PE of 38.5 (forward PE 28.5) on a 5-year earnings CAGR of 25.6%, while carrying a D/E ratio of 5.517 that stands as the primary balance-sheet watch point. A ~$1 billion acquisition in the US market, funded by SBI, has emerged as the key near-term corporate event as of June 2026.
P/E
38.5
Forward P/E
28.5
ROE
+14.7%
Debt / Equity
5.52
Profit Margin
+19.6%
Div. Yield
+0.9%
5Y ROE > 15%
3/5
5Y FCF > 0
4/5
Quality
69/100
News
8 headlines · 6 positive · 0 negative
India's Top Bank in $1 Billion Funding for Sun Pharma's US Deal - Bloomberg
Bloomberg
SBI in $1 billion funding for Sun Pharma's US deal - The Economic Times
The Economic Times
Sun Pharma Q4 Profit Jumps 26% to Rs 2,714 Cr, India Sales Drive Strong FY26 Growth - Medical Dialogues
Medical Dialogues
Sun Pharma to market Utreglutide in Large markets through partnership - ETPharma.com
ETPharma.com
Sun Pharma's Organon deal set to reshape biosimilars competitive landscape - Generics and Biosimilars Initiative
Generics and Biosimilars Initiative
Recent context
- ·Q4 FY26 net profit rose 26% YoY to ₹2,714 crore, with India sales cited as a primary growth driver; FY26 full-year results were described as strong growth across geographies.
- ·Sun Pharma signed a partnership to market Utreglutide in large markets (May 2026) and entered a biosimilars deal with Organon (reported June 2026), extending its specialty and biosimilars pipeline into regulated markets.
- ·SBI is providing ~$1 billion in funding for a Sun Pharma US acquisition, reported by Bloomberg and the Economic Times in early June 2026; this is the largest single corporate event in the current news window and directly bears on leverage trajectory.
Strengths
- +Highest quality score among the 6-stock peer group (59 vs. peer range 24–51), combining profitability, consistency, and balance-sheet trajectory into a composite leadership position within the sector.
- +5-year earnings CAGR of 25.6% and revenue CAGR of 12.8% reflect compounding over a full business cycle, with FCF positive in 4 of the tracked years and debt trend classified as falling.
- +Price is above both the 50-DMA (₹1,791) and 200-DMA (₹1,725) with a drawdown of only 4.09% from its 52-week high, indicating the stock has maintained relative price strength while sector peers lack comparable 1-year price data.
- +Forward PE of 28.5 represents a 26% compression from the trailing PE of 38.5, implying that consensus earnings estimates embed meaningful growth in the next fiscal year relative to the trailing reported figure.
Weaknesses
- −D/E of 5.517 is materially elevated for a pharma manufacturer; the ~$1 billion US acquisition announced in June 2026 and funded by SBI carries execution and integration risk that could further stretch a balance sheet where leverage is already the primary fundamental concern.
- −ROE of 14.72% has exceeded 15% in only 3 of the tracked years; a 5-year earnings CAGR of 25.6% has not consistently translated into above-median returns on equity, and the quality consistency score of 73 reflects intermittent rather than structural persistence.
- −Profit margin of 19.64% is solid in absolute terms, but the Q4 FY26 earnings release was accompanied by cost-pressure commentary, highlighting that margin sustainability is an active variable rather than a given as the company pursues US-market expansion.
- −At PE 38.5, the stock trades at a 38% premium to Cipla (28.2) and a 56% premium to Dr. Reddys (24.7); sustaining that valuation gap requires continued earnings delivery at a pace that has historically been intermittent at the ROE level.
Open questions
- ?Does the 5-year earnings CAGR of 25.6% reflect a structural improvement in the India branded-generics business or a catch-up from a low base, and how does management guidance characterise the sustainability of that rate post-acquisition?
- ?How does the $1 billion US acquisition change the D/E ratio on a pro-forma basis, and what is the expected deleveraging timeline given the current debt-falling trend?
- ?The forward PE of 28.5 implies significant earnings growth consensus; what specific revenue and margin drivers underpin that estimate, and what would cause it to be revised downward?
- ?Given that peer 1-year price change data is unavailable, how does SUNPHARMA's 12.49% 1-year return compare to the broader Nifty Pharma index over the same period, and does the sector tailwind or company-specific execution account for more of that return?
Peer comparison: Pharma
Ranks 1 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| SUNPHARMA | Sun Pharmaceutical Industries Ltd.You're viewing | 38.5 | +14.7% | 59 |
| Industry avg | across 5 peers | 52.0 | +15.1% | 36 |
| DIVISLAB | Divi's Laboratories Ltd. | 70.0 | +16.2% | 51 |
| APOLLOHOSP | Apollo Hospitals Enterprise Ltd. | 62.9 | +21.5% | 44 |
| MAXHEALTH | Max Healthcare Institute Ltd. | 74.2 | +14.3% | 37 |
| DRREDDY | Dr. Reddy's Laboratories Ltd. | 24.7 | +11.8% | 25 |
| CIPLA | Cipla Ltd. | 28.2 | +11.7% | 24 |
Technical state
Current price
₹1,838.30
SMA 50
₹1,791.42
SMA 200
₹1,724.51
RSI (14)
59.3 (neutral)
From 52w high
-4.1%
1Y return
+12.5%
3M return
+5.4%
50-DMA
Above
200-DMA
Above
Algorithmic support levels
Algorithmic resistance levels
Risk flags
- highD/E of 5.517 is materially elevated for a pharma manufacturer; while the debt trend is recorded as falling, the active ~$1 billion SBI-funded US acquisition deal reported in June 2026 could substantially reverse that trajectory and add fresh leverage to an already-stretched balance sheet.
- mediumROE of 14.72% has exceeded 15% in only 3 of the tracked years; FCF was positive in 4 of available years (consistency score 73), indicating returns on equity and free-cash generation have been intermittent rather than structurally persistent across the measurement window.
- mediumThe peer set mixes hospital operators (Apollo Hospitals PE 62.9, Max Healthcare PE 74.2) with pharma peers (Cipla PE 28.2, Dr. Reddys PE 24.7, Divis PE 70.0), limiting valuation comparability. SUNPHARMA at PE 38.5 ranks 3rd of 6 on that metric; peer-level 1Y price change data is unavailable, preventing relative price performance ranking.
- lowAll 8 recent news items cluster around Q4 results (May 2026), the Organon biosimilars deal (June 2026), and the SBI-funded US acquisition; news concentration on a narrow event window means headline sentiment (6 positive, 2 neutral, 0 negative) reflects a short burst rather than a sustained trend.
Cross-section contradictions
- 5-year earnings CAGR of 25.6% and revenue CAGR of 12.8% represent sustained compounding, yet ROE has exceeded 15% in only 3 of the tracked years — consistent earnings growth has not consistently translated into high returns on equity.
- Q4 FY26 net profit rose 26% YoY to ₹2,714 crore and all 8 recent headlines are non-negative, yet the trailing 12-month price gain of 12.49% is modest relative to a 25.6% 5-year earnings CAGR, suggesting the market is already discounting some of that growth at the current PE of 38.5.
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.
Fundamentals & technicals: refreshed 25 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 21 Jun 2026 · rotates through NIFTY 500 every ~5 days