SUN PHARMACEUTICAL IND L Valuation

SUNPHARMA · Healthcare · Current price ₹1,929

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DocStoX fair value
₹1,064
low confidence
Current price
₹1,929
Upside
-44.8%
P/E ratio
40.3x
P/B ratio
20.1x
Verdict
Avoid
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Is SUN PHARMACEUTICAL IND L undervalued?

DocStoX estimates the fair value of SUN PHARMACEUTICAL IND L at ₹1,064 per share, versus the current market price of ₹1,929. That puts the stock about -44.8% above our fair-value estimate, which we read as "Avoid". Our confidence in this estimate is low.

How this fair value is calculated

This estimate blends 4 independent methods: Residual income (₹363), Relative P/E (₹1,871), Graham floor (₹612), Analyst target (₹2,154). We weight each by its reliability and skip any method whose inputs look untrustworthy — "no DCF beats a wrong DCF". This is the same deterministic engine that powers DocStoX stock pages; there is no guesswork or AI-generated number here.

Bear, base and bull scenarios

Our scenarios span ₹363 (bear) to ₹1,064 (base) to ₹2,154 (bull). A margin of safety means buying meaningfully below the base case — the wider the gap, the more room for error in the assumptions.

Valuation multiples

SUN PHARMACEUTICAL IND L trades at a P/E of 40.3x and a P/B of 20.1x, with a dividend yield of 0.8%. Multiples are most useful compared against the company's own history and its sector peers — see the peer comparison for context.

Understand the ratios

More on SUN PHARMACEUTICAL IND L

DocStoX estimates are generated by a deterministic valuation engine from reported financials — for informational purposes only, not investment advice. Consult a SEBI-registered advisor before investing.