Sun Pharmaceutical Industries
Stock Snapshot
Price Performance
Vista Outlook
View Technicals Analysis →Basis of our Recommendation
Sun Pharmaceutical Industries is navigating a pivotal phase characterized by a strategic shift towards specialty and innovative medicines, which management emphasizes as key growth drivers. The recent acquisition of Organon is anticipated to enhance revenue streams, particularly in the Women's Health and Biosimilars segments, positioning Sun Pharma as a significant player in these high-growth markets. However, the company faces challenges from price erosion in the US generics market and rising input costs, which may pressure margins. Vista's financial outlook reflects a cautious optimism, projecting stable margins and moderate revenue growth, supported by favorable currency dynamics and a robust domestic formulation business. The anticipated synergies from the Organon acquisition, estimated at over $350 million within 2-4 years, further bolster the long-term growth narrative. Nevertheless, execution risks associated with the integration of Organon and competitive pressures in the generics space remain critical watchpoints. Over the next 12-24 months, Sun Pharma's focus on innovative therapies and biosimilars, alongside its strong domestic performance, will be essential in navigating these challenges and capitalizing on growth opportunities
Why We Like This Stock
- The acquisition of Organon is expected to significantly enhance revenue growth and market positioning in high-potential segments
- Management's focus on specialty and innovative medicines is driving operational performance and brand strength in the domestic market
- Favorable currency dynamics are likely to benefit export-oriented revenue streams
Things To Watch Out For
- The US generics segment faces ongoing price erosion and competitive pressures that could impact revenue stability
- Rising input costs may exert pressure on profit margins despite stable margin expectations
- Execution risks related to the integration of Organon could hinder the realization of anticipated synergies
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 48,497 | 52,578 | 58,462 | 59,909 | 66,430 |
| Profit Before Tax (Cr.) | 11,592 | 14,446 | 16,426 | 17,644 | 19,873 |
| PBT Margin | 23.9% | 27.5% | 2809.7% | 29.5% | 29.9% |
| Net Profit (Cr.) | 9,474 | 11,870 | 12,124 | 12,960 | 14,563 |
| Earnings Per Share | 39.4 | 49.3 | 50.4 | 53.9 | 60.7 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| BOB Capital Markets | ▲ Buy | 2,124 | 24-May-2026 |
| Bernstein | ▲ Buy | 2,235 | 17-Jun-2026 |
| Bofa | ▼ Underperform | 1,915 | 03-Aug-2026 |
| CLSA | ▲ Buy | 2,020 | 25-May-2026 |
| Choice Equity | ▲ Buy | 2,300 | 25-May-2026 |
| Citigroup | ▲ Buy | 2,280 | 03-Aug-2026 |
| Deven Choksey | ► Add | 2,048 | 27-May-2026 |
| Elara Capital | ► Accumulate | 2,085 | 25-May-2026 |
| Emkay Global | ► Add | 2,100 | 03-Aug-2026 |
| HDFC Securities | ▲ Buy | 2,120 | 22-May-2026 |
| HSBC | ▲ Outperform | 2,150 | 03-Aug-2026 |
| ICICI Securities | ► Hold | 2,100 | 24-May-2026 |
| JMFinancials | ► Hold | 2,011 | 26-May-2026 |
| Kotak Securities | ▲ Buy | 2,200 | 01-Jun-2026 |
| Macguire | ▲ Buy | 2,150 | 03-Aug-2026 |
| Mirae Asset | ▲ Buy | 1,885 | 15-May-2026 |
| Moneycontrol | ► Equalweight | nan | 25-May-2026 |
| Motilal Oswal | ▲ Buy | 2,310 | 01-Aug-2026 |
| Nomura | ▲ Buy | 1,920 | 26-May-2026 |
| Nuvama | ▲ Buy | 2,115 | 26-May-2026 |
| Prabhudas Liladhar | ▲ Buy | 2,070 | 25-May-2026 |
Company Overview
Show Company Profile
Sun Pharmaceutical Industries Limited, a generic pharmaceutical company, develops, manufactures, and markets branded and generic formulations, and active pharmaceutical ingredients (APIs) in India, the United States, and internationally. The company offers formulations in various therapeutic areas, including neuropsychiatry, cardiology, diabetes, gastroenterology, pain/analgesics, gynecology, ophthalmology, urology, dermatology, respiratory, anti-infectives, oncology, psychiatry, neurology, orthopaedic, nephrology, dental, and nutritionals. It also provides generic medications, such as tablets, capsules, injectables, inhalers, ointments, creams, and liquids; specialty medications; antiretrovirals medications; and over-the-counter products, such as vitamins, analgesics, digestives, and lifestyle. In addition, the company offers generics and APIs for anti-cancers, peptides, steroids, sex hormones, immunosuppressant drugs, and controlled substances. Sun Pharmaceutical Industries Limited was founded in 1983 and is headquartered in Mumbai, India.