Sun Pharmaceutical Industries Limited Fundamental Analysis
Sun Pharmaceutical Industries Limited Fundamental Analysis
Sun Pharmaceutical Industries Limited (SUNPHARMA.NS) shows weak financial fundamentals with a PE ratio of 37.82, profit margin of 19.64%, and ROE of 15.00%. The company generates $584.0B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 92.7/100 based on profitability, valuation, growth, and balance sheet metrics. The A grade reflects excellent fundamentals and strong overall stability.
Fundamental Health Score
We analyze SUNPHARMA.NS's fundamental strength across five key dimensions:
Efficiency Score
ExcellentSUNPHARMA.NS demonstrates superior asset utilization.
Valuation Score
WeakSUNPHARMA.NS trades at a premium to fair value.
Growth Score
ModerateSUNPHARMA.NS shows steady but slowing expansion.
Financial Health Score
ExcellentSUNPHARMA.NS maintains a strong and stable balance sheet.
Profitability Score
ExcellentSUNPHARMA.NS achieves industry-leading margins.
Key Financial Metrics
Is SUNPHARMA.NS Expensive or Cheap?
P/E Ratio
SUNPHARMA.NS trades at 37.82 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, SUNPHARMA.NS's PEG of 7.77 indicates potential overvaluation.
Price to Book
The market values Sun Pharmaceutical Industries Limited at 5.20 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 24.02 times EBITDA. This signals the market has high growth expectations.
How Well Does SUNPHARMA.NS Make Money?
Net Profit Margin
For every $100 in sales, Sun Pharmaceutical Industries Limited keeps $19.64 as profit after all expenses.
Operating Margin
Core operations generate 23.18 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $15.00 in profit for every $100 of shareholder equity.
ROA
Sun Pharmaceutical Industries Limited generates $10.55 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Sun Pharmaceutical Industries Limited generates limited operating cash flow of $47.76B, signaling weaker underlying cash strength.
Free Cash Flow
Sun Pharmaceutical Industries Limited produces free cash flow of $23.90B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $9.96 in free cash annually.
FCF Yield
SUNPHARMA.NS converts 0.55% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
37.82
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
7.77
vs 25 benchmark
P/B Ratio
Price to book value ratio
5.20
vs 25 benchmark
P/S Ratio
Price to sales ratio
7.42
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.05
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.82
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.15
vs 25 benchmark
ROA
Return on assets percentage
0.11
vs 25 benchmark
ROCE
Return on capital employed
0.16
vs 25 benchmark
How SUNPHARMA.NS Stacks Against Its Sector Peers
| Metric | SUNPHARMA.NS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 37.82 | 29.03 | Worse (Expensive) |
| ROE | 15.00% | 773.00% | Weak |
| Net Margin | 19.64% | -53674.00% (disorted) | Strong |
| Debt/Equity | 0.05 | 0.50 | Strong (Low Leverage) |
| Current Ratio | 2.82 | 4.44 | Strong Liquidity |
| ROA | 10.55% | -20240.00% (disorted) | Strong |
SUNPHARMA.NS outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Sun Pharmaceutical Industries Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Defensive, Growth, Innovation
EPS CAGR
N/A
Industry Style: Defensive, Growth, Innovation
FCF CAGR
N/A
Industry Style: Defensive, Growth, Innovation