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The market asks roughly as much of Infosys as of Sun Pharma.
At current prices, buyers of Infosys are assuming about 0% growth against 8% in its own record; for Sun Pharma it is 7% against 16%. That shows which share needs more to go right — not which is cheaper. How far each trades from its estimated fair value is in the full valuations.
- Valuation method: both on discounted cash flow.
- Size: the two are worth roughly the same on the stock market.
- Record: On revenue the two have grown at much the same pace: Infosys compounded at about 12% a year (FY2019–FY2026) and Sun Pharma at about 10% (FY2018–FY2026).
- What to watch: large deal wins at Infosys; specialty growth at Sun Pharma.
| Infosys | Sun Pharma | |
|---|---|---|
| Price | ₹1,142 | ₹1,880 |
| Market cap | ₹4.63L Cr | ₹4.51L Cr |
| P/E | 15.0 | 41.1 |
| P/B | 4.98 | 5.40 |
| Fair value 🔒 sign in | ₹0,000 | ₹0,000 |
| Upside 🔒 sign in | +00% | +00% |
| Valued on | Discounted cash flow | Discounted cash flow |
01Two businesses
What Infosys sells, and to whom
Infosys, founded in Pune in 1981 by N. R. Narayana Murthy and six co-founders and now based in Bengaluru, is India's second-largest IT services company. It runs digital transformation, cloud, data and AI programmes for large companies, mainly in North America and Europe, and owns Finacle, a core-banking platform used by banks worldwide.
From generics to specialty medicines
Sun Pharmaceutical Industries, founded by Dilip Shanghvi in 1983, is India's largest pharmaceutical company and the leader in branded prescriptions in India. It sells generics in the US, emerging markets and Europe, and owns Taro Pharmaceutical, a dermatology-focused generics maker it took fully private in 2024.
02The records side by side
On revenue the two have grown at much the same pace: Infosys compounded at about 12% a year (FY2019–FY2026) and Sun Pharma at about 10% (FY2018–FY2026). By revenue, Infosys is about 3.1 times the size of Sun Pharma. Infosys kept 16.5% of revenue as net profit in FY2026; Sun Pharma kept 19.7% of revenue as net profit in FY2026.
Full ten-year tables and charts are on each company's page: Infosys · Sun Pharma.
03What each price assumes
Work backwards from each share price and you can see what buyers are taking for granted — the rate each company must sustain to justify what it costs, against what its own record supports.
04What decides each one's value
- Large deal winsBig multi-year contracts give visibility, but they often start at lower margins.
- Operating marginWage increases and pricing pressure can push margins below the company's own target range.
- Specialty growthThe specialty portfolio is the main reason Sun earns a higher multiple than most Indian pharma companies. Its growth rate drives the valuation.
- The India businessBranded prescriptions in India are steady, cash-rich and grow with the domestic market.
05What could go wrong
- Financial-services concentrationBanks are its largest client group, so a banking slowdown hits Infosys first.
- AI deflationAutomation could shrink the hours clients pay for faster than new AI work replaces them.
- US FDA complianceWarning letters or import alerts at a manufacturing site can block US sales from that plant for years.
- Trial and patent riskA failed trial or an early generic challenge can wipe out expected specialty revenue.
06Which is better value?
Sign in free to see which trades further below its worth
- ✓Both fair values per share — each on the method that fits the business
- ✓Every step of both workings — growth, margins and cost of capital, with sources
- ✓Bull, base and bear cases — for each company
- ✓Downloadable reports — the full write-up for each, yours to keep
08Questions people ask
Is Infosys or Sun Pharma better value?
That turns on how far each share trades from its estimated fair value. Both figures, with every step of the working, are in the full valuations, free to view once you sign in. On the public numbers, Infosys trades at 15.0 times earnings and 4.98 times book value, and Sun Pharma at 41.1 times earnings and 5.40 times book value — but multiples alone mislead when two businesses work differently, which is why each is valued on the method that fits it.
What is the difference between Infosys and Sun Pharma?
Infosys, founded in Pune in 1981 by N. Sun Pharmaceutical Industries, founded by Dilip Shanghvi in 1983, is India's largest pharmaceutical company and the leader in branded prescriptions in India.
Are Infosys and Sun Pharma valued the same way?
Yes — both on discounted cash flow, so their workings compare like for like.
What does today's price assume for Infosys and Sun Pharma?
Worked backwards from the share price, Infosys needs about 0% growth and Sun Pharma about 7% growth, against 8% and 16% in their own records.