Sun Pharmaceutical Industries has underperformed India’s benchmark indices—the Sensex and the Nifty—for the first time in six years, marking a notable shift in its relative market performance. The stock’s lag comes despite steady growth in its domestic business, as pressures from overseas markets weighed heavily on investor sentiment.
The key drag has been weak momentum in the US market, Sun Pharma’s largest revenue contributor. Pricing pressures, slower product traction, and heightened competition have limited upside. Adding to the challenges are regulatory headwinds, including compliance-related issues and delayed approvals, which have raised concerns over near-term growth visibility.
While Sun Pharma continues to post stable numbers in India, supported by strong branded formulations and chronic therapy segments, these gains have not been enough to offset global uncertainties. As a result, benchmark indices have outpaced the stock, ending its multi-year streak of outperformance.
Going ahead, analysts believe Sun Pharma’s relative performance will hinge on resolution of regulatory issues, recovery in the US business, and successful new product launches. Until then, the stock may continue to trail broader market benchmarks despite its solid domestic fundamentals.
