Sun Pharmaceutical (SUNPHARMA.NS)
Healthcare · NSE · India
Fundamentals
Valuation and ratings
Sun Pharmaceutical trades at ₹1,950.10, close to the ₹1,840.69 our discounted cash flow model puts on the business. On this measure the market and the model broadly agree, so the interesting question is which of them is wrong.
Our moat model scores it 81 out of 100, which is a wide moat. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 40.5 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About Sun Pharmaceutical
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.
SUNPHARMA.NS passes 5 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Common questions
Is Sun Pharmaceutical (SUNPHARMA.NS) undervalued?
Against our discounted cash flow estimate of ₹1,840.69, SUNPHARMA.NS at ₹1,950.10 is 6% above fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
What is SUNPHARMA.NS's P/E ratio?
SUNPHARMA.NS trades at 40.5 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
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Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.