Case study

SUNPHARMA

Sun Pharmaceutical Industries

Mixed signals
0Score

Sun Pharmaceutical Industries (SUNPHARMA) Stock Analysis & Case Study

Is SUNPHARMA a good buy? The data-driven verdict.

Sun Pharmaceutical Industries (SUNPHARMA) trades at ₹1,863,on the numbers it mixed signals, a Downstox Snapshot Score of 51/100.

On the numbers, Sun Pharmaceutical Industries (SUNPHARMA) mixed signals, a Downstox Snapshot Score of 51/100, weighing premium at 35.8× earnings, ROE of 16.0%. Below: the full bull case, bear case, sector-relative valuation, and a probability-weighted price target for 20272031.

Last updated . Data snapshot for research, not investment advice.

The Downstox take on SUNPHARMA

The tension here is a 35.8 P/E sitting on returns that are merely good, not exceptional: 16% ROE and 20.5% ROCE describe a well-run business, but not one usually worth paying nearly 36 times earnings for. So the multiple is buying a future the current returns do not yet justify, likely a bet on the specialty pipeline maturing into higher margins. The thin 0.86% yield says cash is being kept inside, and a Piotroski score of 4 is the soft spot to watch: confirm the operating momentum that price already assumes.

Downstox editorial view, written by our own analysts. Information, not investment advice.

SUNPHARMA fundamentals at a glance, PE, PB, ROE, ROCE, market cap, dividend yield

Market cap
₹4.47L Cr
Current price
₹1,863
P/E ratio
35.8×
P/B ratio
5.35×
Book value
₹348
Dividend yield
0.86%
ROCE
20.5%
ROE
16.0%
Piotroski F-Score
4/9

Is SUNPHARMA overvalued? SUNPHARMA P/E vs its Pharma

SUNPHARMA's P/E of 35.8× sits above the Pharma peer median of 30.0×, so on earnings it screens richer than peers, while its 0.86% dividend yield is above the peer median of 0.51%.

SUNPHARMA P/E
35.8×
Peer median P/E
30.0×
SUNPHARMA div yield
0.86%
Peer median yield
0.51%

The bull case for SUNPHARMA

  • A healthy 16.0% return on equity.
  • Strong ROCE (20.5%) shows the core business earns well above its cost of capital.

The bear case & risks

  • At 35.8× earnings the stock carries a premium to the market, strong growth is already in the price, so any miss tends to be punished.

SUNPHARMA Piotroski F-Score: 4/9, how financially strong is it?

4/9

The Piotroski F-Score grades financial strength on nine profitability, leverage and efficiency checks. SUNPHARMA scores 4/9,mixed financial health.

SUNPHARMA MTF margin & leverage, Upstox, Zerodha, Groww, Dhan

Margin Trading Facility lets you buy SUNPHARMA with part of the capital. Lower margin % = higher leverage. Rates compared across brokers (no competitor publishes this):

BrokerMargin requiredApprox. leverage
Upstox26.5%3.8×
Zerodha22.6%4.4×
DhanCHEAPEST22.0%4.5×

Compare every broker on the SUNPHARMA MTF page.

SUNPHARMA vs peers,Pharma comparison

StockP/EDiv yieldMarket cap
SUNPHARMA (this stock)35.8×0.86%₹4.47L Cr
DIVISLAB68.7×0.44%₹1.80L Cr
DRREDDY25.7×0.62%₹1.08L Cr
CIPLA30.0×0.92%₹1.14L Cr
LUPIN18.6×0.51%₹1.07L Cr
AUROPHARMA24.4×0.27%₹86,647 Cr
BIOCON175.0×0.12%₹68,224 Cr

About Sun Pharmaceutical Industries: sector, index & market-cap context

Sun Pharmaceutical Industries (SUNPHARMA) is a large-cap NSE-listed company in the Pharma sector, and a constituent of the Nifty 50 index group, with a market capitalisation of ₹4.47L Cr. See more Nifty 50 stocks.

How the SUNPHARMA Snapshot Score & forecast are built

The Downstox Snapshot Score is a transparent, rules-based read of Sun Pharmaceutical Industries's public fundamentals plus a statistical forecast, not an analyst opinion. It rewards low-to-fair valuation, high ROE/ROCE, a strong Piotroski F-Score, a dividend, low volatility and a favourable probability of upside; it penalises rich valuations, weak capital efficiency, a low F-Score and high volatility. The price target is a 10,000-path Monte-Carlo simulation on real historical volatility, a distribution, not a single guess. The bull and bear cases are generated from the same data, so you always see both sides.

This is information, not investment advice. Do your own due diligence and consult a SEBI-registered adviser before investing.

SUNPHARMA analysis, FAQs

Is Sun Pharmaceutical Industries (SUNPHARMA) a good buy?

On the numbers, Sun Pharmaceutical Industries (SUNPHARMA) mixed signals, a Downstox Snapshot Score of 51/100, weighing premium at 35.8× earnings, ROE of 16.0%. This is a data snapshot for research, not investment advice.

Is SUNPHARMA overvalued or undervalued?

SUNPHARMA trades at 35.8× earnings versus a peer median of 30.0×, so it screens richer than its Pharma peers.

What is the bull case for SUNPHARMA?

A healthy 16.0% return on equity. Strong ROCE (20.5%) shows the core business earns well above its cost of capital.

What are the risks in SUNPHARMA?

At 35.8× earnings the stock carries a premium to the market, strong growth is already in the price, so any miss tends to be punished.

More on SUNPHARMA