Aug. 5 at 9:50 AM
$SUNPHARMA.NSE
Technical View-
Technical View (As of Latest Chart on 05-08-2025):
$STOCK has broken down from higher levels (1730+ to 1620).
RSI is near 40 (weak zone), MACD in deep negative.
Trend reversal signs not yet visible. Support around ₹1600; if breaks, ₹1540-1500 zone may come.
Why Is
$SUN Pharma Falling?
1-Earnings Disappointment:
The
$STOCK fell around 4.6% after reporting a 20% drop in consolidated net profit for Q1 FY26, from ₹2,836 crore to ₹2,278 crore. While revenue rose 10%, concerns over lower other income and higher tax burden weighed on investor sentiment Regulatory Headwinds:
Ongoing US FDA scrutiny at its Halol and Mohali facilities continues to worry the market. The Halol plant received eight Form‑483 observations, limiting potential upside. Resolution is expected to have only marginal impact (USD ~50 million) on revenue.
2-Global Trade Tensions:
An unexpected announcement of a proposed 25% tariff on Indian exports to the U.S. sparked fears for pharma exporters like
$SUN Pharma. Though exemptions exist, the uncertainty has pressured the broader pharma sentiment.
3-Weak Analyst Sentiment & Guidance:
Broking firms reduced FY26/27 earnings estimates due to higher R&D expenditure, branded business costs, and tax rate increases. Despite retaining Buy ratings, target prices were adjusted lower—motilal Oswal at ₹1,960, Nomura at ₹1,970 Specialty Portfolio Under Pressure:
Its advanced research arm SPARC saw a ~20% crash following the failure of a key psoriasis drug in Phase 2 trials, denting long-term growth visibility.
4-Sectoral Weakness:
The broader pharma index declined sharply as Sun Pharma underperformed peers. On high-volume days, Sun Pharma has been a leading laggard, amplifying negative pressure.
5-Positive Points (Long-Term View):
India's Largest
$SUNPHARMA.NSEPharma Company – Diversified portfolio across generics, branded generics, and specialty.
Strong Presence in US & Emerging Markets – US remains a key market, despite recent concerns.
Specialty Drug Focus – Long-term growth driver.
Debt-Free or Low Leverage – Strong balance sheet and cash flows.
R&D Strength – Continuous investment in research.
6-Current Challenges (Short-Term View):
USFDA Halol Plant Issues – Regulatory risk (8 observations recently).
Profit Miss in Q1 FY26 – Net profit down ~20% YoY, despite revenue growth.
SPARC Drug Trial Failure –
$SUNPHARMA.NSENegative for long-term innovation outlook.
Global Pharma Pressure – US tariffs news created short-term volatility.
Technical Weakness – Stock broke support levels, bearish momentum on charts.
What to do BUY, SELL & HOLD?
For long-term
$SUNPHARMA.NSEinvestors,
$SUNPHARMA.NSESun Pharma remains a fundamentally strong company, and gradual accumulation during dips (₹1500–₹1550 zone) may be considered using a SIP approach. The focus should remain on its core strengths, such as R&D, global presence, and a strong balance sheet. However, short-term
$SUNPHARMA.NSEtraders are advised to stay cautious and avoid entering prematurely, as the
$SUNPHARMA.NSEstock is under technical pressure. A clear reversal with strong volume and price action is necessary before considering fresh positions for short-term trades. Let the trend confirm before taking action.
Warning:
This report is for educational and informational purposes only and should not be considered as investment advice or a trading recommendation.
Disclaimer:
Registration with SEBI, BSE membership, and NISM certification do not guarantee investment returns or the performance of the analyst. Markets are subject to risk and volatility. Past performance is not indicative of future results.
Disclosure:
I, Deepak Pal, and my family members have no holding in Bank Nifty at the time of this analysis. We have no personal interest in the instrument discussed. Always consult a certified financial advisor before investing.
Visit: www.investogainerresearch.com for more research and analysis.
