pharma
Sun Pharma
SUNPHARMA · Nifty 50
₹1,820.4
Price 2026-06-17
At a Glance
Fundamental
80/100
STRONG
Trust
95/100
Verification
Coverage
89/100
HIGH
Quick Take
Sun Pharma scores 80/100 on fundamentals (strong). Sun Pharma: PE below historical average. BROAD EXPANSION regime.
Fundamental Score: 80/100 · STRONG · 1 signals detected
DuPont Analysis
ROE 12.6% broken into three drivers. Each shows how efficiently the company generates returns.
ROE of 12.58% is moderate margin-driven and stable. Net margin of 18.6% × asset turnover of 0.52x × leverage of 1.3x.
What This Means
Net margin of 18.6% means the company keeps ₹18.6 as profit for every ₹100 of revenue. This is a healthy margin. Asset turnover of 0.52x means the company efficiently uses its assets to generate revenue. Leverage of 1.3x means the company uses moderate debt. Returns are primarily driven by operations, not borrowing.
Margin Structure
Gross
80.2%
Operating
25.6%
Net
18.6%
Gross margin 80.2% → operating margin 25.6% → net margin 18.6%. Margins are DECLINING. Check if input costs are rising or competition is pressuring pricing.
Financial Health
Earnings Quality
ADEQUATECash flow covers net income 1.2x — earnings are ADEQUATE quality. Cash conversion is reasonable.
Debt Sustainability
COMFORTABLEInterest covered 50.3x — very comfortable. Debt service is not a concern. Debt/EBITDA at 0.3x is low — balance sheet has capacity.
Free Cash Flow
MODERATEFCF margin at 15.6% — strong cash generation. Business is self-funding.
Peer Comparison
Sun Pharma is compared against 10 peers in the pharma sector.
Key Watchpoints
Breaks above ₹1911 (+5%)
Trend reversal confirmation
Breaks below ₹1729 (-5%)
Further downside risk
PE reverts to 5Y median of 37.9
Valuation normalization
Pharma sector entering leadership
Sector rotation signal
Detected Patterns
Risk Flags
Special charges of ₹1307K Cr. May indicate restructuring, impairment, or one-time costs.
High refinancing risk. Company needs to roll over debt frequently. Vulnerable to credit market freezes.
Strong insider alignment. Promoters have significant skin in the game.
➡️ 3 flags — 1 positive, 2 warning. Mixed profile.
Data Quality
News Correlation
50 articles scanned for fundamental themes