Is Sun Pharmaceutical a good stock to buy in India in 2025?

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At HelloSafe, our expert has been tracking the performance of Sun Pharmaceutical for over three years. Every month, lakhs of users in India trust us to decipher market trends and identify the best investment opportunities. Our analyses are provided for informational purposes and do not constitute investment advice. In accordance with our ethical charter, we have never been, and will never be, paid by Sun Pharmaceutical.

What is Sun Pharmaceutical?

The Sun Pharmaceutical Stock Price

The price of Sun Pharmaceutical stock is rising this week. The current share price stands at ₹1,679.70, up 0.62% over the past 24 hours, with a 6-month decline offset by a 9.5% gain over the past year. The company has a market capitalization of ₹4,03,016 crores and an average three-month trading volume of about 2.77 million shares. Sun Pharmaceutical trades at a P/E ratio of 35.1, offers a dividend yield of 0.95%, and has a low beta of 0.38, reflecting less volatility than the broader market. This stability, combined with its leadership in the Indian pharma sector, makes the stock an appealing option for cautious investors tracking long-term performance.

Our full analysis of Sun Pharmaceutical stock

Having undertaken a rigorous review of Sun Pharmaceutical’s most recent financial results and the stock’s trajectory over the last three years, we have integrated a broad spectrum of analytical inputs—fundamental indicators, technical momentum, market comparisons, and competitive positioning—using proprietary screening algorithms. This synthesis offers a forward-looking perspective tailored for Indian investors. So, why might Sun Pharmaceutical stock once again become a strategic entry point into the global healthcare and pharmaceutical sector in 2025?

Recent performance and market context

After a period of consolidation, Sun Pharmaceutical stock has shown a clear uptrend, currently trading at ₹1,679.70. The stock is up 0.62% over the past 24 hours and has recorded a robust 9.5% gain over the past year, outperforming many sector peers despite a challenging global environment. The company retains a formidable market capitalization of approximately ₹4,03,016 crores ($48.4 billion), ranking it solidly among India’s largest and most resilient pharma names. In FY25, Sun Pharmaceutical’s financial resilience has been further reinforced by strong revenue growth—up 8.1% YoY in Q4—and a notable increase in EBITDA margins, even as broader macroeconomic factors such as rupee volatility and regulatory headwinds have impacted the sector.

Recent headlines highlight several bull-friendly events: the declaration of a ₹5.50 per share final dividend with a record date of July 2025, assuring investors of ongoing cash returns; positive analyst sentiment with an 18% upside consensus target; and continued investments in R&D and specialty drugs. The backdrop remains supportive, as demand for quality healthcare and generic medicines continues to climb both in India and internationally, and as the government prioritizes domestic pharmaceutical manufacturing within “Make in India” initiatives and global supply-chain realignment.

Technical analysis

From a technical perspective, Sun Pharmaceutical exhibits a constructive setup for bullish investors. As of early July 2025, its RSI stands at 63.69—a level consistent with healthy momentum but comfortably below overbought territory, indicating that there is room for further appreciation. The MACD, a leading momentum indicator, continues to flash bullish since mid-June, signaling sustained upside energy. The stock price sits just above its 20-day moving average, a favorable position that historically supports further advances.

Crucially, Sun Pharmaceutical is hovering above a major technical support at ₹1,600, which has repeatedly served as an anchor for rebounds over recent months. Resistance is observed at ₹1,708, with a break above likely to unleash renewed buying and set the stage for a test of the 52-week high near ₹1,960. With its stable beta of 0.38, the share maintains below-market volatility, appealing to conservative investors. Momentum structure and trend alignment suggest a medium-term bullish phase is emerging.

Fundamental analysis

Sun Pharmaceutical’s latest results confirm a strong and improving financial foundation. Q4 FY25 revenue reached ₹12,959 crores, up 8.1% YoY, while EBITDA surged by an impressive 22.4%—demonstrating superior cost control, product mix improvement, and operational leverage. The company’s EBITDA margin of 28% places it at the top end of the Indian pharma sector. Although net profit dipped (down 19% YoY) due to US restructuring charges, this appears to be a one-off impact; core business profitability remains sound.

Valuation remains compelling for investors: with a P/E ratio of 35.1, Sun Pharmaceutical is priced at a premium compared to some peers, but this is well justified by its innovation-focused business model, dominant Indian and global market share, robust specialty medicines pipeline, and forward growth opportunities. The company’s PEG and P/S ratios further confirm reasonable pricing relative to strong earnings and sales momentum. Key structural strengths include its leading position in both generics and specialty pharma, a globally diversified manufacturing base spanning over 40 facilities, and a brand synonymous with regulatory reliability and R&D-driven progress.

Volume and liquidity

Liquidity in Sun Pharmaceutical shares remains high, as demonstrated by sustained average daily trading volumes of around 2.77 million shares. Such volumes highlight continuous institutional interest and facilitate efficient price discovery—an essential consideration for both retail and institutional investors. The well-balanced float, coupled with strong promoter and institutional shareholding, creates an environment favorable to dynamic and resilient valuation, reducing the risk of erratic price swings and liquidity traps often seen in lesser-traded stocks.

Catalysts and positive outlook

• Specialty medicines expansion: Continued rollout of high-margin, innovative specialty drugs in dermatology, ophthalmology, and oncology—areas with increased demand and pricing power.
• New product launches: The company's focus on products like Leqselvi and pipeline assets positions it to capitalize on unmet global healthcare needs.
• ESG leadership: Progress in sustainability initiatives and strong governance, increasingly emphasized by large institutional investors.
• International expansion: Enhanced presence in the US and Europe, supported by new regulatory approvals and strategic partnerships.
• M&A opportunities: Sun’s robust balance sheet and proven acquisition track record suggest further consolidation could underpin medium-term growth.
• Supportive policy environment: Government focus on healthcare access and generic medicines, including under “Make in India,” augments sector demand.

These factors combine to offer multiple avenues for above-market returns and reduce overreliance on any single segment or geography.

Investment strategies

• Short-term: The stock’s technical momentum and positive MACD/RSI alignment make it attractive for tactical entries near ₹1,680, with tight risk management relative to key supports.
• Medium-term: Forthcoming product launches and the likelihood of surpassing key technical resistance around ₹1,708 could propel the share toward consensus targets near ₹1,980, representing an 18% upside.
• Long-term: Structural tailwinds, a best-in-class pipeline, and sector leadership suggest the potential for compounding returns over several years, particularly as global healthcare spending rises and Sun continues to expand its specialty portfolio.

Investors seeking ideal positioning may consider partial accumulation near technical supports or on signs of positive post-earnings momentum, balancing exposure based on risk appetite and timeframe.

Is it the right time to buy Sun Pharmaceutical?

Bringing together technical setup, fundamental resilience, and a dynamic pipeline, Sun Pharmaceutical demonstrates nearly all the hallmarks of a stock poised for renewed leadership in the Indian and global healthcare arena. Strengths like superior EBITDA margin, reliable dividend policy, and a strong balance sheet, combined with ongoing expansion in specialty medicines, underpin the fundamentals that justify renewed investor focus.

Given rising volume, sustained institutional interest, solid price supports, and a backdrop of favorable sector dynamics, Sun Pharmaceutical seems to represent an excellent opportunity for both growth-focused and risk-conscious investors. As market sentiment remains constructive and catalysts align for FY26, the stock may well be entering a new bullish phase with material upside potential.

In sum, Sun Pharmaceutical stands out as a strategic investment for those seeking exposure to robust, innovation-led growth in a defensive yet rapidly evolving sector—and the current technical and business configuration makes this an especially timely moment to seriously consider adding this leading pharma stock to a diversified portfolio.

How to buy Sun Pharmaceutical stock in India?

Buying Sun Pharmaceutical stock online is both simple and secure when using a regulated broker operating in India. Retail investors have two main options: purchasing shares outright (spot buying) or trading through Contracts for Difference (CFDs), which allow you to speculate on price movements with leverage. Both methods are accessible through leading online platforms and offer flexible ways to participate in the fast-growing Indian healthcare sector. For a detailed comparison of brokers’ features and fees, see the broker comparison further down the page.

Spot buying

Cash buying means directly purchasing Sun Pharmaceutical shares for your investment portfolio. You become a shareholder and benefit fully from any rise in the share price and dividend payments. Typically, Indian brokers charge a fixed commission per order (for example, around ₹100–₹300), plus taxes and minor regulatory fees.

Example of a Gain Scenario

If the Sun Pharmaceutical share price is ₹1,679.70 and the exchange rate is ₹83 for $1, a $1,000 stake gives you about ₹83,000, so you can buy around 49 shares, including a typical brokerage fee of approximately $5 (₹415).

✔️ Gain scenario: If the share price rises by 10%, your shares are now worth $1,100. Result: +$100 gross gain, i.e. +10% on your investment.

Trading via CFD

CFD trading allows you to speculate on Sun Pharmaceutical’s price movements without owning the underlying shares. This method often involves lower entry costs and the possibility to trade with leverage, though you’ll pay the spread (the difference between buy and sell prices) and overnight financing fees if you keep positions open overnight. CFDs are popular for short-term trades and magnify both gains and losses.

CFD Trading Example: Gain Scenario

You open a CFD position on Sun Pharmaceutical shares, with 5x leverage and a $1,000 deposit. This gives you market exposure of $5,000.

✔️ Gain scenario: If the stock rises by 8%, your position gains 8% × 5 = 40%. Result: +$400 gain, on a bet of $1,000 (excluding fees).

Final advice

It is important to compare the fees, features, and conditions offered by different brokers before investing, as these can impact your returns. The best method depends on your financial goals and risk appetite—whether you prefer the long-term security of share ownership or the flexibility and leverage of CFDs. For more details to help you decide, refer to the broker comparison section provided below.

Our 7 tips for buying Sun Pharmaceutical stock

The latest news about Sun Pharmaceutical

Sun Pharmaceutical shares rise 0.62% in the last trading session, outperforming the sector index. The stock’s move is supported by robust buying interest, reflecting renewed optimism following recent quarterly results and manifesting resilience even as the broader health care index trades flat in India.

Sun Pharmaceutical confirms a final dividend of ₹5.50 per share with July 7 as record date for investors. This dividend announcement signals confidence in the company’s cash flow strength and rewards Indian shareholders with direct income, underscoring management’s commitment to stable capital return.

Sun Pharmaceutical’s recent earnings report reveals 8.1% year-on-year revenue growth and 22.4% EBITDA margin improvement. These financial metrics highlight the company’s solid operational performance and sustained growth in its domestic and export markets, reinforcing strong competitive positioning within India’s booming pharma sector.

New strategic leadership appointments are set to enhance focus on speciality business and global expansion. The elevation of Kirti Ganorkar to Managing Director and Rick Ascroft as North America CEO, effective September 2025, are aimed at accelerating innovation and geographic expansion—core to Sun Pharmaceutical’s long-term India-led strategy.

India’s pharma regulation stability and Sun Pharmaceutical’s compliance record boost institutional investor confidence. Recent inspections and ongoing adherence to regulatory norms in India have had a positive impact on domestic and global investor sentiment, helping to mitigate perceived sector risks and promote long-term stock stability.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.