ACCE price target published on 22 Oct 2026, 16:00 CEST.
Price used: ₹1748 at the close on 23 Oct 2026, 12:00 CEST.
Fair value: the average of the applicable valuation models (discounted cash flow, multiples, residual income, dividend discount, shareholder yield), each run on the latest financial statements and the market price shown. Opinion columns (fair value, target, rating) are shown apart from the data. Full methodology: acceinvestments.com/data/how-we-value-stocks
Conflicts of interest: The author holds no personal position in this security. General statement
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Data
ACCE score
64
out of 100
P/E
34.9x
forward 26.9x
1-year return
+3.4%
Dividend yield
0.91%
Sun Pharmaceutical Industries Limited in four questions
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Overview
ACCE thesis
Sun Pharma makes branded and generic specialty drugs, with its largest revenue from US generics and a fast-growing specialty franchise in dermatology and ophthalmology, including its Ilumya and Cequa products. Its moat is scale in complex generics (injectables, topicals and modified-release formulations) where entry barriers are high and competition thins out, which supports a 78.9% gross margin. Growth is being pushed by specialty launches and by the India business, which has been pricing above the generic average. At 27.1x forward earnings against 34.9x trailing, the market is pricing in a sharp earnings rebound, and revenue growth of 10.5% with a 23.2% operating margin gives the portfolio manager a concrete base to test that assumption. Worth a deeper look if the specialty ramp and US pricing trends hold up in the quarterly numbers.
⚠ Investor warnings · 2 flagsAI-assisted·How I use AI
moderate
Valuation stretched vs earnings
P/E of 34.9 and EV/EBITDA of 23.5 sit well above the forward P/E of 27.1, and the price trades 3.8% below the ACCE price target of ₹1817.00, so the multiple already assumes sustained earnings growth.
moderate
Revenue growth slowing
Revenue grew 10.5% year on year, in line with the 10.0% five-year CAGR, while earnings grew 27.4%; the gap suggests the recent profit rise relies on margins rather than volume.
AI research notes
AI-assisted·How I use AIWritten Oct 22, 2026 · figures from 2026-10-22 · prices to Oct 23, 2026
Why it could do well
Net margin of 20.2% shows the business keeps a large share of every rupee of revenue as profit.
Debt to equity of 0.06 means the company carries very little borrowed money against its shareholder funds.
Analysts' mean price target of INR 2174.34 sits 23.7% above the current share price of ₹1748.00.
Why it could disappoint
Revenue grew 10.5% over the last year, which is modest for a stock trading at a forward P/E of 27.1x.
The trailing P/E of 34.9x leaves little room for disappointment if earnings growth slows from here.
The ACCE price target of INR ₹1817.00 sits 3.8% below the current price of INR ₹1748.00, so our valuation does not support paying more today.
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