Sun Pharmaceutical's vital signs: A strong dose of valuation multiples

The specialty segment and domestic business act as the lifeblood, coursing through the largest pharma company in the country, fuelling both revenue and margins

Bolstered by an impressive performance in the global specialty business and outstanding results in the Indian market, Sun Pharmaceutical Industries, the largest pharmaceutical (pharma) company in the country, showcased a strong performance in the July–September quarter (second quarter, or Q2) of 2023–24 (FY24). This robust performance resulted in an 11 per cent growth in revenue on a consolidated basis and an expansion of gross margins by 180 basis points.

Following the Q2FY24 results, while most brokerages have maintained their earnings estimates, some have upgraded the stock, attributing it a higher valuation multiple.

Research analysts Vishal Manchanda and Vivek Mane from