Synopsis: Goldman Sachs maintains a Sell rating on Sun Pharma with a ₹1,550 target, implying 13.5% downside, despite growth in innovative medicines and strong performance in emerging markets.
This Large-cap Pharma Stock, engaged in developing, manufacturing, and marketing generic and specialty pharmaceuticals across therapeutic areas like dermatology, cardiology, and oncology worldwide, is in focus after Goldman Sachs gave a sell target of Rs. 1,550, which has a downside potential of 13.55 percent.
With a market capitalization of Rs. 4,27,743.36 crores, the share of Sun Pharmaceutical Industries Limited has reached an intraday high of Rs. 1,793 per equity share, rising nearly 2.50 percent from its previous day’s close price of Rs. 1,749.35. Since then, the stock has retreated and is currently trading at Rs. 1,782.80 per equity share.
What is the News?
Goldman Sachs, a prominent brokerage firm, has recommended a “Sell” call on Sun Pharmaceutical Industries Limited with a target price of Rs. 1,550 per share, indicating a downside potential of 13.55 percent from its today’s intraday high of Rs. 1,793 per equity share.
Goldman Sachs maintains a Sell rating on Sun Pharma. The company’s innovative medicines business is expected to remain an important driver of future growth. These specialized products often bring higher margins and help the company strengthen its position in global pharmaceutical markets. At the same time, Sun Pharma has been performing strongly in Emerging Markets and the Rest of the World (ROW), showing steady growth and better-than-expected results in these regions.
The company is also focusing on profitable growth rather than just expanding sales. In terms of mergers and acquisitions (M&A), Sun Pharma is not prioritizing immediate earnings per share (EPS) gains. Instead, management is more focused on deals that can create long-term value for the business and support sustainable growth over time.
Manufacturing Facilities:
Sun Pharmaceutical Industries Limited operates around 40 manufacturing facilities globally, including formulation plants in India (12) and the US (3), along with sites across Canada, Hungary, Israel, Bangladesh, South Africa, Malaysia, Romania, Egypt, Nigeria, Morocco, and Russia.
Sun Pharmaceutical Industries Limited’s API facilities are located in India, Australia, Israel, the US, and Hungary, producing a wide range of oral, injectable, sterile, and topical medicines.
Company Overview:
Sun Pharmaceutical Industries Limited was founded in 1983 and is India’s largest and a leading global pharmaceutical company, specializing in affordable, high-quality generic and specialty medicines for patients worldwide.
The company develops, manufactures, and markets a broad range of formulations like tablets, injectables, creams, and APIs across various therapeutic areas, including dermatology, neurology, cardiology, and oncology.
With a strong focus on innovation, research, and strategic acquisitions like Ranbaxy, Sun Pharma serves over 100 countries through 40 manufacturing facilities and a vast network of healthcare professionals.
Revenue Segments (FY25):
Sun Pharmaceutical Industries Limited reported FY25 sales of around Rs. 520 billion, with a diversified revenue mix led by India formulations contributing 33 percent, followed by US formulations at 31 percent.
Emerging markets formulations account for 18 percent, while Rest of World (RoW) formulations contribute 14 percent, and API & others make up the remaining 4 percent, reflecting the company’s balanced presence across domestic and global pharmaceutical markets.
Recent Quarter Results:
Coming into financial highlights, Sun Pharmaceutical Industries Limited’s revenue has increased from Rs. 13,675 crore in Q3 FY25 to Rs. 15,521 crore in Q3 FY26, which has grown by 13.50 percent. The net profit has also grown by 16.07 percent from Rs. 2,913 crore in Q3 FY25 to Rs. 3,381 crore in Q3 FY26.
Sun Pharmaceutical Industries Limited’s revenue and net profit have grown at a CAGR of 9.87 percent and 21.32 percent, respectively, over the last five years. In terms of return ratios, the company’s ROCE and ROE stand at 20.2 percent and 16.9 percent, respectively. Sun Pharmaceutical Industries Limited has an earnings per share (EPS) of Rs. 45.5, and its debt-to-equity ratio is 0.07x.
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