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Today's prices ask more of Sun Pharma than of Zydus Lifesciences.
At current prices, buyers of Sun Pharma are assuming about 7% growth against 16% in its own record; for Zydus Lifesciences it is 0% against 15%. 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: Sun Pharma is worth about 3.8 times Zydus Lifesciences on the stock market.
- Record: On revenue the two have grown at much the same pace: Sun Pharma compounded at about 10% a year (FY2018–FY2026) and Zydus Lifesciences at about 11% (FY2018–FY2026).
- What to watch: specialty growth at Sun Pharma; us launches at Zydus Lifesciences.
| Sun Pharma | Zydus Lifesciences | |
|---|---|---|
| Price | ₹1,880 | ₹1,190 |
| Market cap | ₹4.51L Cr | ₹1.19L Cr |
| P/E | 41.1 | 28.4 |
| P/B | 5.40 | 4.38 |
| Fair value 🔒 sign in | ₹0,000 | ₹0,000 |
| Upside 🔒 sign in | +00% | +00% |
| Valued on | Discounted cash flow | Discounted cash flow |
01Two businesses
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.
From Cadila Healthcare to Zydus
Zydus Lifesciences, based in Ahmedabad and renamed from Cadila Healthcare in 2022, is one of India's larger drugmakers. It sells generic medicines in the US, branded prescriptions in India and has a growing pipeline of specialty and biological products.
02The records side by side
On revenue the two have grown at much the same pace: Sun Pharma compounded at about 10% a year (FY2018–FY2026) and Zydus Lifesciences at about 11% (FY2018–FY2026). By revenue, Sun Pharma is about 2.2 times the size of Zydus Lifesciences. Sun Pharma kept 19.7% of revenue as net profit in FY2026; Zydus Lifesciences kept 18.9% of revenue as net profit in FY2026.
Full ten-year tables and charts are on each company's page: Sun Pharma · Zydus Lifesciences.
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
- 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.
- US launchesNew and complex generics drive US growth.
- India brandsSteady domestic prescriptions support cash flow.
05What could go wrong
- 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.
- FDA inspectionsAdverse findings can block US approvals.
- US price erosionGeneric prices fall as competitors enter.
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 Sun Pharma or Zydus Lifesciences 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, Sun Pharma trades at 41.1 times earnings and 5.40 times book value, and Zydus Lifesciences at 28.4 times earnings and 4.38 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 Sun Pharma and Zydus Lifesciences?
Sun Pharmaceutical Industries, founded by Dilip Shanghvi in 1983, is India's largest pharmaceutical company and the leader in branded prescriptions in India. Zydus Lifesciences, based in Ahmedabad and renamed from Cadila Healthcare in 2022, is one of India's larger drugmakers.
Are Sun Pharma and Zydus Lifesciences valued the same way?
Yes — both on discounted cash flow, so their workings compare like for like.
What does today's price assume for Sun Pharma and Zydus Lifesciences?
Worked backwards from the share price, Sun Pharma needs about 7% growth and Zydus Lifesciences about 0% growth, against 16% and 15% in their own records.