Sun Pharma Advanced Research Company Ltd

Price story Before the numbers, the tape. A stock price moves through four repeating seasons: a flat base (stage 1), an advance (2), a top (3), a decline (4). Where the price sits in that cycle frames everything below.

Sun Pharma Advanced Research Company Ltd trades at ₹235, in a confirmed uptrend and 9 weeks into that stage. That is +36.0% against its own 200-day average. It sits at 80% of a 52-week range of ₹115 to ₹265. On relative strength it has been ahead of the NIFTY 500 on a trailing-13-week view for 21 straight weeks.

Today the stock is in a confirmed uptrend — week 9 of stage 2, confirmed. At ₹235 it trades +36.0% versus its 200-day average and sits at 80% of its 52-week range (₹115–₹265).

Against the market, two honest reads. Cumulative: over the last 10.3 years the stock moved −18% while the NIFTY 500 moved +274% — behind the index over the full window. Recent form: on a trailing-13-week view the stock has been ahead for 21 straight weeks — the ribbon below is that same metric, week by week.

What would end the trend, mechanically: two Friday closes in a row below the 200-day line. That is the exit rule — no debates.

→ The trend is one thing; the bill is another. Are you paying up for it? Next: how the P/E reads against its own history.

Valuation P/E is the price of ₹1 of annual profit: how many rupees the market pays for each rupee the company earns in a year.

Sun Pharma Advanced Research Company Ltd trades at 4.5× P/E, against too little history to rank. Its long-run median P/E is 4.7×, measured across 0.2 years of weekly readings. This places the multiple against the stock’s own record, and says nothing about what the business is worth.

Today's P/E of 4.5× is against too little history to rank, against a long-run median of 4.7× measured over 0.2 years of weekly readings. This is a comparison against the stock's own history — not a claim about what it is worth.

Put together: the multiple is unremarkable against its own past, so the story rests on the earnings line underneath it, not the multiple.

→ Cheap or dear rides on the earnings. Are they actually growing? Next: the fundamental stage — where the business sits in its arc, and how growth has compounded.

Stage: No read Every business sits somewhere on a fundamental arc, and this page names the spot before anything else. The last twelve quarters of revenue, profit and EPS growth — plus the return the business earns on its capital — are read as curves: Deteriorating (the curves are falling), Turning around (a trough has just formed and the last few quarters lift off it), Improving (the climb off the trough is sustained), Consistent (steadily positive with healthy returns), Topping out (still high but decelerating from the peak). When the curves genuinely disagree the read is Mixed; too little history is No read. CAGR (compound annual growth rate) is the smooth yearly pace that turns the starting value into the latest one — the fairest way to compare growth across different time spans. Read the columns together: if the 1-year number towers over the 10-year, recent growth is running hotter than the long-run trend. A dash means that window is not held, or the base year was a loss (where a growth rate is not meaningful).

Sun Pharma Advanced Research Company Ltd reads as no read on its fundamental arc. Under eight usable quarters on the growth trio — not enough history for an honest trajectory read. The read is built from 12 quarters across 2 curves, on partial evidence.

Why it matters: with too little history, an honest page says so instead of guessing a trajectory.

One or more growth curves carry a base-effect spike — a large year-on-year move off a near-zero or loss-making comparable quarter. Those spikes are capped before the classifier reads the trajectory, and shown pinned on the chart, so a single distorted quarter does not drive the stage call.

Return readings here are annual, not quarterly — read as level and direction only; they can confirm the growth curves but never drive the stage on their own.

Fewer than eight usable quarters on the growth curves — this page will not guess a trajectory from a stub of history.

→ The stage names the trajectory. Next: the revenue line that produces it, quarter by quarter.

4-Factor Sector Score

61.6/100 — rank 3 of 10 in Pharma - Others · 79% evidence confidence

Sun Pharma Advanced Research Company Ltd scores 61.6 out of 100 against the 10 companies it is compared with in Pharma - Others, ranking 3. Balanced evidence: keep at normal research priority and require another comparable period before raising conviction.

The four contributions add to the total exactly: 17.7 + 16.3 + 9.2 + 18.4 = 61.6. This is the SAME number shown on the sector comparison — it is computed once, for the whole peer set, and read here.

What would change it: The read weakens if profit growth turns negative or margin improvement reverses while sector-relative strength deteriorates.

Revenue Revenue is the top line: everything the company billed its customers in the period.

Sun Pharma Advanced Research Company Ltd reported ₹1,853 Cr of revenue in the Mar 26 quarter, +6,763.0% year on year. Over 3 years it has compounded at 98.8% a year. The last full year, FY26, came in at ₹1,879 Cr. The last four reported quarters add to ₹1,879 Cr.

Sun Pharma Advanced Research Company Ltd reported ₹1,853 Cr of revenue in the Mar 26 quarter, +6,763.0% year on year. Over 3 years it has compounded at 98.8% a year. The last full year, FY26, came in at ₹1,879 Cr. The last four reported quarters add to ₹1,879 Cr.

FY26 revenue came in at ₹1,879 Cr (+2,509.7% on the year), capping 3 years at 98.8% compound. The latest quarter (Mar 26) printed ₹1,853 Cr, +6,763.0% year on year.

Pace check: the last four quarters averaged +1,659.2% growth against the decade's 98.8% — the current year is running faster than its own long-run rate.

Acceleration check: trailing-twelve-month revenue grew +2,509.7% over the last 4 quarters against +397.2%/yr over the last 8 — accelerating.

→ Revenue grew — did margins hold as it scaled? Next: 96.0% this quarter (+292.0 pp YoY).

Operating margin Operating margin is what is left of every ₹100 of sales after running the business, before interest and tax. It is the cleanest read on pricing power and cost control.

Sun Pharma Advanced Research Company Ltd's operating margin is 96.0% in the Mar 26 quarter, +292.0 percentage points against the same quarter a year ago. Across 4 fiscal years the operating margin has ranged −532.0% to 85.0%. The current quarter is running above every full year in that window.

Sun Pharma Advanced Research Company Ltd's operating margin is 96.0% in the Mar 26 quarter, +292.0 percentage points against the same quarter a year ago. Across 4 fiscal years the operating margin has ranged −532.0% to 85.0%. The current quarter is running above every full year in that window.

The latest quarter's operating margin is 96.0%, +292.0 pp against the same quarter a year ago. Across 4 fiscal years the operating margin has ranged −532.0%–85.0%.

Why the margin moved: operating margin went +291.3 pp year on year while gross margin went +20.7 pp — the gain came mostly below the gross line: operating leverage, with costs spread over a bigger revenue base.

→ Margins held — did that reach the bottom line? Next: profit null in the latest quarter.

Net profit Net profit is what survives every cost, interest and tax — the number EPS, dividends and book value all grow from.

Sun Pharma Advanced Research Company Ltd earned ₹1,761 Cr of net profit in the Mar 26 quarter. Full-year FY26 profit was ₹1,553 Cr. That is 95.0% of the quarter's revenue. The same quarter a year earlier lost ₹60.0 Cr. 11 of the last 12 reported quarters were loss-making.

Sun Pharma Advanced Research Company Ltd earned ₹1,761 Cr of net profit in the Mar 26 quarter. Full-year FY26 profit was ₹1,553 Cr. That is 95.0% of the quarter's revenue. The same quarter a year earlier lost ₹60.0 Cr. 11 of the last 12 reported quarters were loss-making.

Mar 26 profit was ₹1,761 Cr, null year on year. On the full year, FY26 printed ₹1,553 Cr (null).

→ Profit rose — but did the cash follow?

Cash flow — the router The P&L says what was earned; the cash-flow statement says what actually arrived. Operating cash flow (CFO) against profit is the cleanest lie detector in the accounts.

Sun Pharma Advanced Research Company Ltd's cash-flow history is too thin to judge how much reported profit converts into cash. In FY26 that was ₹−239 Cr of operating cash against ₹1,553 Cr of profit. After ₹14.0 Cr of capital spending, ₹−253 Cr was left as free cash. Cash resolution here is annual, because quarterly cash statements are not published.

FY26: operating cash of ₹−239 Cr against reported profit of ₹1,553 Cr, leaving free cash of ₹−253 Cr after ₹14.0 Cr of capital spending.

Cash-flow readings here are annual — that is the resolution our series carries, so this section moves once a year.

Router verdict: the bigger cash user is investment — capital spending ran 1.7× depreciation over three years, so the next section's job is to check what that build-out is buying.

→ So follow the cash to where it goes. Next: ₹59.0 Cr of building over 3 years.

Where the cash goes Working capital is the cash tied up between paying suppliers and getting paid: debtor days (customers owe), inventory days (stock waits), and the cash conversion cycle (the whole loop, in days of sales).

Sun Pharma Advanced Research Company Ltd's cash conversion cycle runs 2 days in FY26, down from 50 days in FY23. Capital spending ran ₹59.0 Cr over the last 3 years. At FY26 sales of ₹1,879 Cr each day of that cycle holds about ₹5.1 Cr, so roughly ₹10.0 Cr sits inside the business at any moment.

FY26: debtors at 2 days (an asset-light business — no inventory to speak of) — for a full cycle of 2 days, tighter than FY23's 50.

In money terms: at FY26 sales of ₹1,879 Cr, each day of the cycle holds about ₹5.1 Cr — so the 2-day loop keeps roughly ₹10.0 Cr sitting inside the business at any moment.

On the investment side: capital spending of ₹59.0 Cr over the last 3 fiscal years against ₹35.0 Cr of depreciation — the company is building well ahead of wear-and-tear. Capital work-in-progress stands at ₹72.0 Cr (FY26) — capacity paid for but not yet earning.

The synthesis: the cash is going into capacity, not disappearing into the cycle — the question becomes whether the new capacity earns.

→ Does all this activity actually earn its cost of capital? Next: ROCE is 164% and the ROIC − WACC spread is +90.5 pp.

Return on capital Return on capital employed (ROCE) is the profit the whole business earns on all the money in it — equity and debt together. It is the single best test of whether growth creates value or just size.

Sun Pharma Advanced Research Company Ltd earns a ROCE of 164% in FY26. That is up from a trough of −279% in FY25. Return on invested capital clears the cost of that capital by +90.5 percentage points, so growth here adds value rather than only size. The wiring behind it is 82.7% net margin on 0.87× asset turns.

FY26 ROCE is 164%, recovered from a FY25 trough of −279% — the full ladder below shows the fall and the climb, undoctored.

Why the return is what it is — the wiring (FY26): 82.7% net margin × 0.87× asset turns × 1.62× balance-sheet leverage ≈ 116.6% on equity. Margin is doing the heavy lifting; leverage is a meaningful part of the equation.

The capstone test — ROIC − WACC: 102.5% − 12.0% = a +90.5 pp spread. The 12.0% is a standing assumption for the cost of capital in India, not a per-stock estimate — read the sign and the size of the spread, not the decimals. A spread this wide means every rupee reinvested creates more than a rupee of value — the engine compounds.

→ Returns like these — is the balance sheet borrowing to make them? Next: debt-to-equity is 0.42.

Debt Debt-to-equity says how much of the business is funded by borrowings. Low is the safe corner; the trend matters as much as the level.

Sun Pharma Advanced Research Company Ltd carries total debt of ₹559 Cr against shareholder equity of ₹1,339 Cr as of Mar 26, a debt-to-equity of 0.42. On the annual view that ratio went from 2.55 in FY22 to 0.42 in FY26. Read the returns elsewhere on this page with that leverage in mind.

Mar 26: total debt of ₹559 Cr against shareholder equity of ₹1,339 Cr — a debt-to-equity of 0.42. On the annual view, debt-to-equity went from 2.55 (FY22) to 0.42 (FY26). Read the returns on this page with that leverage in mind.

→ Who owns this, and are they adding or leaving? Next: Foreign institutions added 1.8 points over 8 quarters.

Ownership Who owns the stock, quarter by quarter: promoters (the controlling owners), foreign and domestic institutions, and the public. Steady accumulation by people close to the numbers is a signal; a quiet register is also an answer.

Foreign institutions added 1.8 points of Sun Pharma Advanced Research Company Ltd over 8 quarters, the biggest move on the register. That takes foreign institutions to 3.9% of the company. Domestic institutions moved −0.1 points over the same window, to 0.1%. The register is read on the four disclosed classes only; nothing is inferred between filings.

The register over the last two years — Foreign institutions: +1.8 points over 8 quarters to 3.9%; Domestic institutions: −0.1 points over 8 quarters to 0.1%; Promoters: +0.0 points over 8 quarters to 65.7%.

Why the register moved: foreign institutions drove it (+1.8 points) — steady accumulation by institutions reading the same numbers this page reads.

→ One last check: does the safety math agree? Next: the balance-sheet safety line.

Safety line The Z-score estimates how far a company sits from balance-sheet distress — above roughly 3 is safe, below roughly 1.8 is the danger zone. It was built for manufacturers, so it is not applied to banks and lenders.

Sun Pharma Advanced Research Company Ltd: the Z-score reads 6.77. A Z-score above roughly 3 reads as safe and below roughly 1.8 as the distress zone, so this sits well clear of distress. It is a distance-to-distress estimate from the balance sheet, not a forecast of failure.

Why it matters: a Z-score of 6.77 sits well clear of the distress zone — the balance sheet is not the risk here.

The safety line in one sentence: the Z-score reads 6.77.

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