Sun Pharma Advanced Research Company Limited
Sun Pharma Advanced Research Company Limited Fundamental Analysis
Sun Pharma Advanced Research Company Limited (SPARC.NS) shows weak financial fundamentals with a PE ratio of -13.17, profit margin of -5.04%, and ROE of 1.25%. The company generates $0.5B in annual revenue with weak year-over-year growth of -5.00%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -337.3/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze SPARC.NS's fundamental strength across five key dimensions:
Efficiency Score
WeakSPARC.NS struggles to generate sufficient returns from assets.
Valuation Score
ModerateSPARC.NS shows balanced valuation metrics.
Growth Score
ModerateSPARC.NS shows steady but slowing expansion.
Financial Health Score
ModerateSPARC.NS shows balanced financial health with some risks.
Profitability Score
WeakSPARC.NS struggles to sustain strong margins.
Key Financial Metrics
Is SPARC.NS Expensive or Cheap?
P/E Ratio
SPARC.NS trades at -13.17 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, SPARC.NS's PEG of 36.12 indicates potential overvaluation.
Price to Book
The market values Sun Pharma Advanced Research Company Limited at -10.24 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -13.49 times EBITDA. This is generally considered low.
How Well Does SPARC.NS Make Money?
Net Profit Margin
For every $100 in sales, Sun Pharma Advanced Research Company Limited keeps $-5.04 as profit after all expenses.
Operating Margin
Core operations generate -4.49 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $1.25 in profit for every $100 of shareholder equity.
ROA
Sun Pharma Advanced Research Company Limited generates $-83.09 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Sun Pharma Advanced Research Company Limited generates limited operating cash flow of $-1.16B, signaling weaker underlying cash strength.
Free Cash Flow
Sun Pharma Advanced Research Company Limited generates weak or negative free cash flow of $-1.39B, restricting financial flexibility.
FCF Per Share
Each share generates $-4.28 in free cash annually.
FCF Yield
SPARC.NS converts -3.94% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-13.17
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
36.12
vs 25 benchmark
P/B Ratio
Price to book value ratio
-10.24
vs 25 benchmark
P/S Ratio
Price to sales ratio
66.39
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
-1.21
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.03
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
1.25
vs 25 benchmark
ROA
Return on assets percentage
-0.83
vs 25 benchmark
ROCE
Return on capital employed
1.41
vs 25 benchmark
How SPARC.NS Stacks Against Its Sector Peers
| Metric | SPARC.NS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -13.17 | 27.85 | Better (Cheaper) |
| ROE | 125.20% | 779.00% | Weak |
| Net Margin | -504.16% | -21544.00% (disorted) | Weak |
| Debt/Equity | -1.21 | 261.05 | Strong (Low Leverage) |
| Current Ratio | 0.03 | 4.55 | Weak Liquidity |
| ROA | -83.09% | -9957.00% (disorted) | Weak |
SPARC.NS outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Sun Pharma Advanced Research Company Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-24.58%
Industry Style: Defensive, Growth, Innovation
DecliningEPS CAGR
11.51%
Industry Style: Defensive, Growth, Innovation
High GrowthFCF CAGR
-37.95%
Industry Style: Defensive, Growth, Innovation
Declining