Sun Pharmaceutical Industries Limited

NSEI:SUNPHARMA Stock Report

Market Cap: ₹4.3t

Sun Pharmaceutical Industries Valuation

Is SUNPHARMA undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of SUNPHARMA when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: SUNPHARMA (₹1795.3) is trading above our estimate of fair value (₹819.64)

Significantly Below Fair Value: SUNPHARMA is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for SUNPHARMA?

Key metric: As SUNPHARMA is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for SUNPHARMA. This is calculated by dividing SUNPHARMA's market cap by their current earnings.
What is SUNPHARMA's PE Ratio?
PE Ratio39x
Earnings₹110.54b
Market Cap₹4.31t

Price to Earnings Ratio vs Peers

How does SUNPHARMA's PE Ratio compare to its peers?

The above table shows the PE ratio for SUNPHARMA vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average31.9x
CIPLA Cipla
26.8x7.3%₹1.2t
500420 Torrent Pharmaceuticals
59.5x22.7%₹1.1t
500124 Dr. Reddy's Laboratories
19x-1.0%₹1.0t
ZYDUSLIFE Zydus Lifesciences
22.3x0.6%₹955.0b
SUNPHARMA Sun Pharmaceutical Industries
39x12.7%₹4.3t

Price-To-Earnings vs Peers: SUNPHARMA is expensive based on its Price-To-Earnings Ratio (39x) compared to the peer average (31.9x).

Price to Earnings Ratio vs Industry

How does SUNPHARMA's PE Ratio compare vs other companies in the IN Pharmaceuticals Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
INDSWFTLAB Ind-Swift Laboratories
1.6xn/aUS$70.43m
524652 Ind-Swift
2xn/aUS$13.12m
No more companies available in this PE range
SUNPHARMA 39.0xIndustry Avg. 31.7xNo. of Companies18PE020406080100+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: SUNPHARMA is expensive based on its Price-To-Earnings Ratio (39x) compared to the Indian Pharmaceuticals industry average (31.7x).

Price to Earnings Ratio vs Fair Ratio

What is SUNPHARMA's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

SUNPHARMA PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio39x
Fair PE Ratio51.3x

Price-To-Earnings vs Fair Ratio: SUNPHARMA is good value based on its Price-To-Earnings Ratio (39x) compared to the estimated Fair Price-To-Earnings Ratio (51.3x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst SUNPHARMA forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current₹1,795.30
₹2,043.32
+13.8%
9.5%₹2,450.00₹1,600.00n/a37
Nov ’25₹1,858.40
₹2,032.58
+9.4%
9.6%₹2,450.00₹1,600.00n/a38
Oct ’25₹1,919.95
₹1,824.05
-5.0%
11.7%₹2,450.00₹1,444.00n/a37
Sep ’25₹1,821.65
₹1,761.31
-3.3%
8.5%₹2,080.00₹1,444.00n/a36
Aug ’25₹1,715.20
₹1,684.58
-1.8%
8.0%₹2,000.00₹1,412.00n/a36
Jul ’25₹1,520.10
₹1,620.39
+6.6%
7.4%₹1,827.00₹1,270.00n/a36
Jun ’25₹1,459.80
₹1,606.53
+10.1%
8.2%₹1,827.00₹1,270.00n/a36
May ’25₹1,502.10
₹1,575.17
+4.9%
8.6%₹1,870.00₹1,275.00n/a35
Apr ’25₹1,629.25
₹1,542.86
-5.3%
8.2%₹1,790.00₹1,200.00n/a35
Mar ’25₹1,559.25
₹1,536.17
-1.5%
7.6%₹1,680.00₹1,200.00n/a36
Feb ’25₹1,407.95
₹1,492.54
+6.0%
9.3%₹1,640.00₹1,200.00n/a37
Jan ’25₹1,260.25
₹1,280.53
+1.6%
5.4%₹1,430.00₹1,020.00n/a36
Dec ’24₹1,231.25
₹1,274.03
+3.5%
5.4%₹1,430.00₹1,020.00n/a37
Nov ’24₹1,116.20
₹1,260.70
+12.9%
5.2%₹1,380.00₹1,020.00₹1,858.4037
Oct ’24₹1,158.65
₹1,242.36
+7.2%
5.9%₹1,340.00₹955.00₹1,919.9536
Sep ’24₹1,109.00
₹1,238.06
+11.6%
6.2%₹1,340.00₹955.00₹1,821.6536
Aug ’24₹1,143.45
₹1,148.89
+0.5%
6.1%₹1,275.00₹870.00₹1,715.2037
Jul ’24₹1,051.60
₹1,143.06
+8.7%
5.8%₹1,275.00₹870.00₹1,520.1036
Jun ’24₹987.70
₹1,142.30
+15.7%
5.8%₹1,275.00₹870.00₹1,459.8037
May ’24₹987.65
₹1,165.68
+18.0%
6.8%₹1,275.00₹875.00₹1,502.1037
Apr ’24₹983.10
₹1,167.57
+18.8%
7.1%₹1,275.00₹845.00₹1,629.2537
Mar ’24₹959.30
₹1,157.50
+20.7%
7.7%₹1,275.00₹845.00₹1,559.2538
Feb ’24₹1,014.90
₹1,157.29
+14.0%
7.7%₹1,275.00₹845.00₹1,407.9538
Jan ’24₹1,001.40
₹1,149.00
+14.7%
7.8%₹1,320.00₹830.00₹1,260.2537
Dec ’23₹1,046.45
₹1,145.03
+9.4%
7.7%₹1,320.00₹830.00₹1,231.2536
Nov ’23₹1,036.60
₹1,100.39
+6.2%
7.5%₹1,320.00₹830.00₹1,116.2036

Analyst Forecast: Target price is less than 20% higher than the current share price.

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