Sun Pharma Advanced Research Company Ltd.
ISIN: INE232I01014 • Market Cap: ₹6,268 Cr
The 5-Pillar Quality Audit for Sun Pharma Advanced Research Company Ltd.
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (84.7%), Return on Capital Employed (113.1%), and equity compounding (116.0%).
2. Financial Health & Solvency
Weight: 25%Debt-to-Equity is 0.42 with comfortable interest coverage and clean working capital.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (193.5%) and 3Y PAT CAGR (—).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of 3.96 vs PEG of — and Dividend Yield of —.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at 65.7%, backed by 4.0% institutional ownership.
Key Fundamental Strengths
Superior Capital Efficiency (ROCE: 113.1%)
Sun Pharma Advanced Research Company Ltd. generates exceptional return on capital employed of 113.1%, reflecting pricing power and competitive moat.
Robust Equity Compounding (ROE: 116.0%)
Shareholder equity compounds at a healthy 116.0%, exceeding average Indian equity benchmarks.
Strong Topline Expansion (3Y Sales CAGR: 193.5%)
Revenue has expanded at 193.5% CAGR over 3 years, signaling industry market-share gains.
Attractive Valuation Margin (P/E: 3.96)
Trading at a P/E multiple of 3.96, the stock offers a favourable risk-reward entry for quality compounding.
Areas to Watch & Potential Risks
Sectoral & Macro Headwinds (Healthcare)
Subject to broader cyclical demand, raw material price shifts, and regulatory frameworks governing the Healthcare space.
Quantitative Strategy Eligibility
Checking SPARC against established Indian wealth creation frameworks:
Coffee Can Investing Framework
Passes Saurabh Mukherjea's Coffee Can rule: 10%+ sustained revenue growth and 15%+ ROCE/ROE.
Quality Factor Screener (High RoIC + Low Debt)
Qualifies for Indian Quality Indices with overall score of 87/100 and clean gearing.
GARP / Value-Growth Blend
Provides balanced valuation margin with strong profitability scores.
Healthcare Sector Peer Comparison
Compare SPARC directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| Sun Pharma Advanced Research Company Ltd. (SPARC)Current | 87/100 | ₹6,268 Cr | 3.96 | 113.1% | 0.42 | — |
| Sun Pharmaceutical Industries Ltd. (SUNPHARMA) | 77/100 | ₹4.55 Lakh Cr | 37.65 | 20.4% | 0.05 | View |
| Divi's Laboratories Ltd. (DIVISLAB) | 73/100 | ₹2.26 Lakh Cr | 77.37 | 19.4% | 0.00 | View |
| Torrent Pharmaceuticals Ltd. (TORNTPHARM) | 64/100 | ₹1.91 Lakh Cr | 87.43 | 9.5% | 1.76 | View |
| Apollo Hospitals Enterprise Ltd. (APOLLOHOSP) | 70/100 | ₹1.27 Lakh Cr | 60.55 | 19.1% | 0.62 | View |
| Cipla Ltd. (CIPLA) | 63/100 | ₹1.14 Lakh Cr | 33.94 | 16.1% | 0.01 | View |
Frequently Asked Questions: Sun Pharma Advanced Research Company Ltd.
Q:What is the 5-Pillar Fundamental Score for Sun Pharma Advanced Research Company Ltd. (SPARC)?
Sun Pharma Advanced Research Company Ltd. has a RupeeTools Fundamental Score of 87/100, placing it in the 'Exceptional Quality' category. Its pillar scores are: Profitability (99/100), Financial Health (77/100), Growth (99/100), Valuation (90/100), and Ownership Quality (65/100).
Q:Is SPARC fundamentally strong for long-term investment?
Yes, SPARC exhibits solid fundamental strength with a 87/100 score, driven by a return on equity of 116.0% and a debt-to-equity ratio of 0.42.
Q:Does SPARC pass the Coffee Can Investing filter?
Yes! SPARC satisfies both core pillars of Coffee Can Investing: achieving consistently high capital returns (ROCE/ROE >= 15%) alongside double-digit multi-year revenue growth.
Q:How does SPARC compare against other Healthcare peers?
Within India's Healthcare sector, SPARC trades at a P/E of 3.96 and generates an ROCE of 113.1%. Compare its 5-Pillar score of 87/100 against top sector peers like Sun Pharmaceutical Industries Ltd. (77/100), Divi's Laboratories Ltd. (73/100).
Regulatory & SEBI Research Analyst Compliance Disclaimer:
This 5-pillar fundamental score is an automated quantitative health check generated purely from historical public financial statements, corporate filings, and exchange disclosures for educational and informational purposes only. It does NOT constitute investment advice, a stock recommendation, or a solicitation to buy or sell securities. RupeeTools is not a SEBI-registered Research Analyst. Please consult a SEBI-registered financial advisor before making investment decisions.