Sun Pharmaceutical Industries Limited

NSEI:SUNPHARMA Stock Report

Market Cap: ₹4.4t

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 (₹1819) 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 Ratio39.5x
Earnings₹110.54b
Market Cap₹4.36t

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 Average37.3x
500420 Torrent Pharmaceuticals
63.9x22.6%₹1.2t
CIPLA Cipla
26.6x7.3%₹1.2t
500124 Dr. Reddy's Laboratories
21.1x-1.1%₹1.1t
500257 Lupin
37.7x16.4%₹989.2b
SUNPHARMA Sun Pharmaceutical Industries
39.5x12.7%₹4.4t

Price-To-Earnings vs Peers: SUNPHARMA is expensive based on its Price-To-Earnings Ratio (39.5x) compared to the peer average (37.3x).

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
1.7xn/aUS$74.25m
524652 Ind-Swift
2.6xn/aUS$17.04m
No more companies available in this PE range
SUNPHARMA 39.5xIndustry Avg. 34.8xNo. of Companies20PE020406080100+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: SUNPHARMA is expensive based on its Price-To-Earnings Ratio (39.5x) compared to the Indian Pharmaceuticals industry average (34.8x).

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 Ratio39.5x
Fair PE Ratio51.3x

Price-To-Earnings vs Fair Ratio: SUNPHARMA is good value based on its Price-To-Earnings Ratio (39.5x) 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₹1,819.00
₹2,047.11
+12.5%
9.3%₹2,450.00₹1,600.00n/a37
Dec ’25₹1,780.90
₹2,043.32
+14.7%
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₹1,020.00₹1,780.9037
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

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

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/25 19:54
End of Day Share Price 2024/12/24 00:00
Earnings2024/09/30
Annual Earnings2024/03/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Sun Pharmaceutical Industries Limited is covered by 73 analysts. 36 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Nitin BhasinAmbit Capital
Prashant NairAmbit Capital
null nullAnand Rathi Shares and Stock Brokers Limited