SUNPHARMA - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 4.1

📊 Core Financials Analysis

Profitability

Quarterly PAT: ₹2,390 Cr vs ₹3,168 Cr — notable decline (−13.1%), but still robust.

ROE: 16.9% and ROCE: 20.2% — strong return metrics, indicating efficient capital deployment.

EPS: ₹45.6 — solid earnings base for a ₹1,710 stock.

Debt & Liquidity

Debt-to-equity: 0.03 — virtually debt-free, excellent financial health.

Dividend Yield: 0.94% — modest, but consistent.

📉 Valuation Indicators

Metric Value Insight

P/E Ratio 35.8 Slightly above industry average (34.0), but justified by quality

P/B Ratio ~5.68 Premium valuation, reflects brand and earnings power

PEG Ratio 1.78 Fairly valued — growth supports current price

Intrinsic Value Close to ₹1,650–₹1,700 Price aligns with fundamentals, not deeply undervalued but not overpriced either

🧠 Business Model & Competitive Advantage

SUNPHARMA is India’s largest pharma company with global operations, especially in generics and specialty drugs.

Strengths

Diversified portfolio across geographies and therapeutic areas

Strong R&D and manufacturing capabilities

Low debt and high profitability

Weaknesses

Regulatory risks in global markets

Recent decline in quarterly profits

Slight drop in FII holdings (−0.70%)

📌 Entry Zone Recommendation

RSI: 58.6 — neutral, no strong buy/sell signal.

MACD positive — mild bullish momentum.

Support Range: ₹1,620–₹1,680 is a good accumulation zone.

Avoid chasing above ₹1,800 unless earnings rebound.

🕰️ Long-Term Holding Guidance

Strong candidate for long-term holding — stable growth, global presence, and solid fundamentals.

Ideal for core portfolio exposure to healthcare.

Monitor regulatory developments and specialty drug pipeline.

Accumulate on dips for compounding potential.

Would you like a comparison with Dr. Reddy’s or Cipla to round out your pharma analysis?

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