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Sun Pharmaceutical Industries Ltd

NSE: SUNPHARMA BSE: 524715

1752.50

(0.89%)

Thu, 12 Mar 2026, 03:48 pm

Sun Pharmaceutical Industries Analysis

dividend

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Pros

  • Dividends per share have increased over the past 10 years.
  • Dividends paid are well covered by earnings (3.9x coverage).
  • Dividends after 3 years are expected to be well covered by earnings (6.3x coverage).
  • Sun Pharmaceutical Industries's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).
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Cons

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Sun Pharmaceutical Industries's dividend is below the markets top 25% of dividend payers in India (3.08%).

future

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Pros

  • Sun Pharmaceutical Industries's earnings growth is expected to exceed the low risk savings rate of 7.2%.
  • Sun Pharmaceutical Industries's earnings are expected to exceed the low risk growth rate next year.
  • Sun Pharmaceutical Industries's earnings are expected to increase by more than the low risk growth rate in 3 years time.
  • An improvement in Sun Pharmaceutical Industries's performance (ROE) is expected over the next 3 years.
  • Sun Pharmaceutical Industries's revenue growth is expected to exceed the India market average.
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Cons

  • Cash flow for Sun Pharmaceutical Industries is expected to increase but not above the 50% threshold in 2 years time.
  • Sun Pharmaceutical Industries's earnings are expected to grow by 17.5% yearly, however this is not considered high growth (20% yearly).
  • Sun Pharmaceutical Industries's earnings growth is positive but not above the India market average.
  • Sun Pharmaceutical Industries's net income is expected to increase but not above the 50% threshold in 2 years time.
  • Sun Pharmaceutical Industries is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
  • Performance (ROE) is not expected to exceed the current IN Pharmaceuticals industry average.
  • Sun Pharmaceutical Industries's revenue is expected to increase but not above the 50% threshold in 2 years time.
  • Sun Pharmaceutical Industries's revenue is expected to grow by 7.7% yearly, however this is not considered high growth (20% yearly).

health

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Pros

  • Sun Pharmaceutical Industries is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Sun Pharmaceutical Industries is profitable, therefore cash runway is not a concern.
  • Sun Pharmaceutical Industries is profitable, therefore cash runway is not a concern.
  • Debt is well covered by operating cash flow (88.1%, greater than 20% of total debt).
  • Debt is covered by short term assets, assets are 4.3x debt.
  • Sun Pharmaceutical Industries's cash and other short term assets cover its long term commitments.
  • The level of debt compared to net worth has been reduced over the past 5 years (31.5% vs 15.2% today).
  • Interest payments on debt are well covered by earnings (EBIT is 16.3x coverage).
  • Sun Pharmaceutical Industries's level of debt (15.2%) compared to net worth is satisfactory (less than 40%).
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Cons

  • High level of physical assets or inventory.

management

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Pros

  • The tenure for the Sun Pharmaceutical Industries board of directors is about average.
  • Dilip's remuneration is lower than average for companies of similar size in India.
  • Dilip's compensation has been consistent with company performance over the past year, both up more than 20%.
  • The tenure for the Sun Pharmaceutical Industries management team is about average.
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Cons

    misc

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    Pros

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      Cons

      • Sun Pharmaceutical Industries has significant price volatility in the past 3 months.

      past

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      Pros

      • Sun Pharmaceutical Industries's 1-year earnings growth exceeds its 5-year average (41.1% vs -8.7%)
      • Sun Pharmaceutical Industries's earnings growth has exceeded the IN Pharmaceuticals industry average in the past year (41.1% vs 22.7%).
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      Cons

      • Sun Pharmaceutical Industries's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
      • Sun Pharmaceutical Industries used its assets less efficiently than the IN Pharmaceuticals industry average last year based on Return on Assets.
      • Sun Pharmaceutical Industries's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
      • Sun Pharmaceutical Industries has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).

      value

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      Pros

      • 524715 matched the Pharmaceuticals industry (26.7%) over the past year.
      • 524715 outperformed the Market in India which returned -14.5% over the past year.
      • BSE:524715 is up 7.6% along with the Pharmaceuticals industry (6.8%) over the past month.
      • BSE:524715 is up 7.6% along with the India market (8%) over the past month.
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      Cons

      • Sun Pharmaceutical Industries's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
      • Sun Pharmaceutical Industries's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
      • Sun Pharmaceutical Industries is overvalued based on assets compared to the IN Pharmaceuticals industry average.
      • Sun Pharmaceutical Industries is poor value based on expected growth next year.
      • Sun Pharmaceutical Industries is overvalued based on earnings compared to the IN Pharmaceuticals industry average.
      • Sun Pharmaceutical Industries is overvalued based on earnings compared to the India market.

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