DINESH

Sun Pharmaceutical Industries

Industry: Pharma B2C
Latest CMP 1,930
Today's Change ▼ -0.10%
52-Week High / Low 2,001 | 1,549
Price Date: 14-Aug-2026
Recommendation Buy
Target Price 2,268
Expected Upside 8.4%
Forecast Horizon 2 Years
Historical CAGR 18.5%
1,000 Invested 15-Aug-2006
Today's Value 29,701
Investment Period 20 Years

Stock Snapshot

Post Results Return
+0.3%
Neutral Market Reaction
1-Year Target Price
2,168
2-Year Target Price
2,268
52-Week High / Low
2,001 / 1,549
20-Day Return
-1.3%
Market Cap (Cr.)
463,007
Current PE
38.6
P/BV Ratio
5.5
Dividend Yield
1.0%
Industry PE
38.6

Price Performance

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

Balance Sheet Strength
Conservatively Financed
Market Share
Stable
Industry Outlook
Improving
Analyst View
Strong Buy
Dividend History
Consistent
FII Holdings
Reducing

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
Consensus Recommendation ▲ Strong Buy
Consensus Target 2,180
Coverage 21 Analysts
Analysts' Viewpoint
Sun Pharma's focus on expanding its specialty and innovative medicine portfolio, including strategic partnerships and new product launches, underpins analyst confidence in its growth trajectory. The domestic formulation business consistently outperforms, contributing to sustainable growth. However, challenges in the US generics segment due to price erosion and increased competition, along with rising operating expenses, pose risks. The anticipated completion of the Organon acquisition and upcoming regulatory milestones are key catalysts for future growth.

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.