Understock

Sun Pharmaceutical Industries

SUNPHARMA · NSE
Pharmaceuticals · Branded generics & specialty pharma
1,800.9
52w ₹1,400₹1,960
Market cap ₹4,12,000 Cr · P/E ratio 36.4
Auto-detected:
Stable profitable company
DCF framework
Profitable 5 of 5 yrs+ve free cash flowRevenue CAGR 13.9%
Why this framework? This company has been consistently profitable, generates real cash, and grows at a steady pace. The right way to value it is a Discounted Cash Flow (DCF) — we estimate what its future cash flows are worth today.

Sun Pharma is India's largest pharmaceutical company and the world's fifth-largest specialty generics firm. It earns ~35% of revenue from the US (primarily generics), ~30% from India branded generics, and the rest from emerging markets and a growing specialty portfolio in dermatology, oncology, and ophthalmology.

NSEPharmaceuticalsBranded generics & specialty pharma

Sun Pharma is India's largest pharmaceutical company and the world's fifth-largest specialty generics firm. It earns ~35% of revenue from the US (primarily generics), ~30% from India branded generics, and the rest from emerging markets and a growing specialty portfolio in dermatology, oncology, and ophthalmology.

What makes it strong

  • Identifiable competitive moat in pharmaceuticals
  • High return on capital (ROCE 22.4%) — earns well above cost of capital
  • Positive free cash flow — self-funding, no dependency on external capital

Honest downsides

  • FDA facility observations can freeze US generic approvals for 12–24 months
  • US generic pricing erosion — 6–8% annual price decline industry-wide

One-line verdict

A high-quality, profitable business — the key question is whether today's price fairly reflects its earnings power.

Current price
1,800.9
Market cap
₹4.1L Cr
P/E ratio
36.4×
ROCE
22.4%
52-week price range
1,400
1,960

Current price 72% of the 52-week range.

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