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Today's prices ask more of Sun Pharma than of Lupin.
At current prices, buyers of Lupin are assuming about 0% growth against 17% 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: Lupin on estimate withheld; Sun Pharma on discounted cash flow.
- Size: Sun Pharma is worth about 5.0 times Lupin on the stock market.
- Record: Sun Pharma has grown revenue faster: Lupin compounded at about 8% a year (FY2018–FY2026) and Sun Pharma at about 10% (FY2018–FY2026).
- What to watch: complex us generics at Lupin; specialty growth at Sun Pharma.
| Lupin | Sun Pharma | |
|---|---|---|
| Price | ₹1,980 | ₹1,880 |
| Market cap | ₹0.91L Cr | ₹4.51L Cr |
| P/E | 17.4 | 41.1 |
| P/B | 4.03 | 5.40 |
| Fair value 🔒 sign in | ₹0,000 | ₹0,000 |
| Upside 🔒 sign in | +00% | +00% |
| Valued on | Estimate withheld | Discounted cash flow |
01Two businesses
A Mumbai drugmaker rebuilt
Lupin was founded in 1968 by Desh Bandhu Gupta and is based in Mumbai. It is one of India's largest generic drugmakers, with big businesses in the US and India and smaller ones across emerging markets.
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
Sun Pharma has grown revenue faster: Lupin compounded at about 8% a year (FY2018–FY2026) and Sun Pharma at about 10% (FY2018–FY2026). By revenue, Sun Pharma is about 2.1 times the size of Lupin. Lupin kept 19.2% of revenue as net profit in FY2026; Sun Pharma kept 19.7% of revenue as net profit in FY2026. Lupin reported a net loss in FY2020 and FY2022; Sun Pharma was profitable in every year shown.
Full ten-year tables and charts are on each company's page: Lupin · 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
- Complex US genericsInhalers and other hard-to-make products earn more.
- India businessChronic-therapy brands grow steadily.
- 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
- FDA problemsNew warning letters would hit US sales.
- Price erosionCompetition cuts generic prices.
- 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 Lupin 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, Lupin trades at 17.4 times earnings and 4.03 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 Lupin and Sun Pharma?
Lupin was founded in 1968 by Desh Bandhu Gupta and is based in Mumbai. Sun Pharmaceutical Industries, founded by Dilip Shanghvi in 1983, is India's largest pharmaceutical company and the leader in branded prescriptions in India.
Are Lupin and Sun Pharma valued the same way?
No. Lupin is valued on estimate withheld and Sun Pharma on discounted cash flow, because forcing one model onto both would misstate at least one of them.
What does today's price assume for Lupin and Sun Pharma?
Worked backwards from the share price, Lupin needs about 0% growth and Sun Pharma about 7% growth, against 17% and 16% in their own records.