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INVESTMENT INSIGHTS

Check Before You Invest : Sun Pharmaceutical Industries Ltd

BSE: 524715 NSE: SUNPHARMA ISIN: INE044A01036
  |   Sector:  Healthcare   |   Industry:  Pharmaceuticals & Drugs

Snapshot

Q.1 Which industry/sub-sector does Sun Pharmaceutical Industries Ltd belong to?
Sun Pharmaceutical Industries Ltd belongs to the Healthcare sector, operating specifically within the Pharmaceuticals & Drugs segment.
Q.2 Is Sun Pharmaceutical Industries Ltd a good quality company?
Sun Pharmaceutical Industries Ltd is a good quality company, based on a consistently good 10 year financial track record.
Q.3 Is Sun Pharmaceutical Industries Ltd undervalued or overvalued?
Sun Pharmaceutical Industries Ltd appears Somewhat overvalued, as its key valuation ratios are above with their past averages.
Q.4 Is Sun Pharmaceutical Industries Ltd a good buy now?
Sun Pharmaceutical Industries Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Sun Pharmaceutical Industries Ltd?
Sun Pharmaceutical Industries Ltd revenue growth is 8.4% for FY-2025 , which is below its 5 year CAGR of 9.9% , indicating slower growth.
Q.2 Gross Profit margin of Sun Pharmaceutical Industries Ltd?
Sun Pharmaceutical Industries Ltd Gross profit margin which is the profit after deduction of direct costs, is 32.3% for FY-2025 , which is above its 5 year median of 27.6% , indicating increasing margins.
Q.3 Operating Profit Margin of Sun Pharmaceutical Industries Ltd?
Sun Pharmaceutical Industries Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 28.77% for FY-2025 , which is above its 5 year median of 26.83% indicating increasing margins.
Q.4 Net Profit Margin of Sun Pharmaceutical Industries Ltd?
Sun Pharmaceutical Industries Ltd Net Profit Margin is 20.88% for FY-2025 , is above with its 5 year median of 19.51%, indicating increasing margins.
Current Level Historic Median
Gross Profit Margin 32.3 27.6
Operating Profit Margin 28.77 26.83
Net Profit Margin 20.88 19.51
Q.5 Return on Asset of Sun Pharmaceutical Industries Ltd?
Sun Pharmaceutical Industries Ltd Return on Asset is 12.99%, which is above its 5 year historical median of 11.88%, indicating improved asset utilization efficiency.
Q.6 Return on Equity (ROE) of Sun Pharmaceutical Industries Ltd?
Sun Pharmaceutical Industries Ltd Return on equity is 16.16% for FY-2025 , which is above its historical median of 16.13%, indicating the business is making better use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Sun Pharmaceutical Industries Ltd?
Sun Pharmaceutical Industries Ltd Return on capital employed is 19.89% for FY-2025 , which is above its estimated weighted average cost of capital(WACC) 11.25%, indicating value creation.
Q.8 Cash conversion cycle of Sun Pharmaceutical Industries Ltd?
Sun Pharmaceutical Industries Ltd Cash conversion cycle is 89 days, above its historical median of 89 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.62 0.62
ROE 16.16 16.13
ROCE 19.89 17.24
Cash Conversion Cycle 89 days 89 days
Q.9 Debt to Equity ratio of Sun Pharmaceutical Industries Ltd?
Sun Pharmaceutical Industries Ltd Debt-to-Equity ratio is 0.03 , which is lower with the industry average of 0.35 , indicating lower debt levels in the industry.
Q.10 Debt to cash flow from operations of Sun Pharmaceutical Industries Ltd?
Sun Pharmaceutical Industries Ltd Debt to cash flow from operations is 0.13 , which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Sun Pharmaceutical Industries Ltd?
Promoters hold 54.48% of the Sun Pharmaceutical Industries Ltd, with 0.97% of their stake pledged, indicating low pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Sun Pharmaceutical Industries Ltd vs industry peers?
Sun Pharmaceutical Industries Ltd revenue CAGR is 9.87% , compared to the industry median CAGR of 10.76% , indicating slower growth and losing its market share.
Profit Metrics
Current Level Industry Median
Revenue 52,578.4 26,752.9
Gross Profit 16,982.7 7,512.8
Operating Profit 15,086 7,224.5
Net Profit 10,980 5,272.5
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.62 0.89
ROE 16.16 19.42
ROCE 19.89 19.32
Cash Conversion Cycle (days) 88.77 111

Valuation & price assessment

Q.1 Stock return of Sun Pharmaceutical Industries Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 7.3% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 7.3% 21% 18.9% -4.3%
Q.3 Valuation ratios of Sun Pharmaceutical Industries Ltd vs historical?
The current P/E is higher that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 37.22 0.00 40.28
Price to Book 5 3.03 2.77
Price to Sales 7.19 4.11 2.65
EV to EBITDA 20.32 17.72 15.67

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