Sun Pharmaceutical Industries Ltd.
Pharma · NSE
52-week range
₹1,538 – ₹1,858
From 52w high
-0.5%
RSI (14)
65.7
vs SMA 50 / 200
↑ 50 · ↑ 200
Sun Pharma trades at ₹1,847.9, above both its 50-DMA (₹1,752.84) and 200-DMA (₹1,696.21), near its 52-week high (drawdown of -0.53%), with a trailing PE of 40.58 and forward PE of 32.61. The dominant recent event is the announced $11.75 billion acquisition of US-listed Organon, India's largest-ever pharma deal, which has driven uniformly positive news sentiment across 8 tracked headlines. Reported D/E of 6.675 is already elevated for the sector and the acquisition's financing structure will be a key variable for leverage trajectory.
- ✓5-year revenue CAGR of 13.5% and earnings CAGR of 15.7% reflect sustained compounding; forward PE of 32.61 represents a 19.6% compression versus trailing PE of 40.58, implying market expectation of continued earnings growth.
- ✓Price is above both 50-DMA (₹1,752.84) and 200-DMA (₹1,696.21), with the stock within 0.53% of its 52-week high and up 9.12% over the past 3 months.
- ✓Quality score of 50 ranks 2nd of 6 in the peer group, ahead of Cipla (30), Dr. Reddy's (32), Divi's Lab (34), and Apollo Hospitals (42), with only Max Healthcare (54) scoring higher.
- ✓FCF was positive in 4 of the tracked years, and the Organon deal, if executed, would expand Sun Pharma's US specialty portfolio and geographic diversification.
- ✗D/E of 6.675 is materially elevated for a pharma company; if the $11.75 billion Organon deal is predominantly debt-funded, leverage could increase significantly, amplifying financial risk in a rate-sensitive environment.
- ✗ROE cleared the 15% threshold in only 3 of tracked years, indicating that high top-line and bottom-line growth has not consistently translated into strong returns on equity; debt trend is additionally marked as rising.
- ✗Profit margin of 19.21% and quality score of 50 are mid-range; the stock's PE of 40.58 is the third-highest among the 6 peer group (below Divi's at 71.88, Max Healthcare at 69.48, Apollo at 64.58), pricing in a growth premium that depends on deal execution.
- ✗FCF positivity in 4 of tracked years means 1 or more years recorded negative FCF; combined with rising debt and a large pending acquisition, cash generation consistency is a metric to monitor closely post-deal close.
- ·Sun Pharma announced the acquisition of US-listed Organon for approximately $11.75 billion in an all-cash deal, described by multiple outlets including Reuters and Bloomberg as India's largest-ever pharma transaction; the deal structure and debt component have not been fully disclosed at time of analysis.
- ·The Economic Times framed the deal as a potential 'perception changer' for the Indian pharma sector, with coverage noting upside potential across multiple pharma names; all 8 tracked headlines on SUNPHARMA carry positive sentiment.
- ·Analyst coverage stands at a mean rating of 1.53 across 32 analysts on a 1–5 scale (lower = more constructive); the forward PE of 32.61 versus trailing 40.58 reflects market pricing of near-term earnings growth acceleration.
- ?How much of the $11.75 billion Organon acquisition price is expected to be funded through debt versus equity or internal accruals, and what does that imply for D/E ratio post-close?
- ?Does the 15.7% 5-year earnings CAGR reflect operational leverage in Sun Pharma's existing business, or is it partly attributable to one-time items, and how does Organon's profitability profile compare?
- ?Given that ROE cleared 15% in only 3 of the tracked years despite strong revenue and earnings growth, what structural factors — capital intensity, working capital cycles, or balance sheet changes — account for the gap?
- ?How has Sun Pharma's US specialty business performed in recent quarters relative to its India branded generics segment, and what integration risks does Organon's primarily US-focused portfolio introduce?
PE
40.6
Forward PE
32.6
ROE
—
Profit margin
+19.2%
D/E
6.67
Dividend yield
+0.9%
Quality score
50/100
ROE 5y above 15%
3/5 yrs
FCF 5y positive
4/5 yrs
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.Analysis generated 10 May 2026.