Sun Pharma.Inds. (SUNPHARMA)

FairStock Score: 52/100 — MIXED

Score breakdown: P/E: 0/3 · ROCE: 1/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

Here is what you need to know about Sun Pharma. First, a data caveat: the headline price is Rs. 1,930, but recent daily closes are around Rs. 1,743. That is a large gap, so treat these numbers as a range and understand that short-term levels are uncertain. Sun Pharma is fundamentally a quality stalwart. The balance sheet is safe: debt-to-equity is only 0.055 and the current ratio is 2.39. Returns on capital are good—ROCE is 20.21 percent and ROE is 14.07 percent. Promoter holding is 54.48 percent, which usually means long-term alignment. The reported profit growth is 47.99 percent year-on-year, but the quant earnings momentum shows negative 4.51 percent profit growth. These may come from different periods, but the contradiction reduces confidence. Sales growth is also weak at about 3 percent in the headline data, so the growth story is uneven. On the quant side, liquidity is excellent. The composite liquidity score is 98.7 out of 100, and market impact is very low: one crore rupees moves the stock only about 5 basis points, and ten crore about 21 basis points. The five-day volume imbalance is 66.5 percent, meaning buyers dominated recent trading, likely institutions. That is bullish. But volume anomaly is neutral at 0.538, so there is no heavy volume confirmation. The mean-reversion model is more cautious. The Ornstein-Uhlenbeck signal shows a z-score of 1.68, putting the price about 4.6 percent above its 20-day average of Rs. 1,726. The half-life is about 6.3 days, so it tends to revert fairly quickly. However, we do not have Hurst or variance ratio data today, so we cannot fully confirm the mean-reversion signal. Still, the model flags it as a strong sell because the price is stretched above the mean. The biggest concern is valuation. At a P/E of 38.32 and price-to-book of 5.54, the Graham number is only Rs. 576. That means the market is pricing in a lot of future growth, and there is no margin of safety. The FairStock score is only 3 out of 10. For position sizing, the Kelly criterion does not show a positive edge for a fresh long here, so half-Kelly is zero. Existing holders should keep the position small, around 1 to 2 percent of a diversified portfolio. My recommendation is to hold if you already own it, but do not add fresh money at these levels. Watch Rs. 1,720 as short-term support and Rs. 1,785 as resistance. A decisive move below Rs. 1,700 would confirm the bearish mean-reversion and valuation signals. A move above Rs. 1,785 with stronger volume and improving earnings momentum would be needed to turn the short-term picture positive.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer