Sun Pharmaceutical Industries
SUNPHARMA · NSESun 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.
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 72% of the 52-week range.
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