✅ At a Glance
| Metric | FY25 (Standalone) |
|---|---|
| Revenue from Operations | ₹22.06 Cr |
| Other Income | ₹2.77 Cr |
| Total Income | ₹24.84 Cr |
| Net Loss | ₹(377.4) Cr |
| EPS (Basic & Diluted) | ₹-10.58 (est.) |
| CMP (May 20, 2025) | ₹1,731 |
| Fair Value Estimate | ~₹100–₹150 (LOL) |
They call it Advanced Research because Basic Research doesn’t burn ₹375 Cr per year.
🧬 About the Company
Sun Pharma Advanced Research Company (SPARC) is a clinical-stage biopharma company spun off from Sun Pharma. It focuses on:
- Proprietary NCEs (new chemical entities)
- NDDS (new drug delivery systems)
- Innovation pipelines for oncology, CNS, ophthalmology
But here’s the thing:
It has no commercialised products.
It’s still in drug trials, licensing, or hope mode.
📉 FY25 Financial Breakdown
| Item | FY25 (₹ Cr) |
|---|---|
| Revenue from Operations | ₹22.06 |
| Other Income | ₹2.77 |
| Total Expenses | ₹404.1 |
| Net Loss | ₹377.4 |
| EPS (Est.) | ₹-10.58 |
R&D = ₹250+ Cr. Revenue = ₹22 Cr.
The business model = “Let’s spend now and pray for USFDA blessings later.”
🔍 Key Observations
- R&D is the biggest cost driver, and it’s rising YoY
- Licensing income seems inconsistent
- Only 1-2 molecules are in late-stage trials
- No blockbuster approval in FY25
🧮 Fair Value (FV) Estimate
No stable earnings = No P/E-based valuation
So let’s do a biotech-style probability-adjusted valuation:
- Estimated peak royalty if 1 drug succeeds: ₹300–400 Cr
- Assign 20% probability of success
- FV = ₹60–80 per share max (generous)
CMP = ₹1,731 = 20x that.
➡️ This is not valued on earnings. It’s priced on FOMO, hope, and a sprinkle of Sun Pharma aura.
💸 Balance Sheet Health
| Item | FY25 (Est.) |
|---|---|
| Cash & Equivalents | ₹150–180 Cr |
| Total Equity | ₹3,000+ Cr |
| D/E Ratio | 0.0 |
| Burn Rate (Annually) | ₹300–₹400 Cr |
They’re still debt-free and cash-rich — but the cash runway is shrinking if no licensing deals come through.
🧠 EduInvesting Take
“SPARC is like the IIT topper cousin doing PhD research while you’re struggling to finish your MBA. Everyone believes they’ll succeed — but nobody knows when.”
The problem isn’t the science. It’s the lack of monetisation.
At ₹1,731 CMP, you’re betting that:
- 1 drug gets approved globally
- Gets big licensing cash
- Pipeline doesn’t fail mid-stage
That’s a big if.
🏁 Final Verdict
✔️ Strong IP pipeline
✔️ Backed by Sun Pharma group
✔️ Clean balance sheet
❌ ₹377 Cr annual loss
❌ EPS negative
❌ No product monetisation yet
❌ CMP = 17x the most generous fair value
“This is not a stock. This is an IPO of a drug trial. If it works, 5x. If it fails, 90% drop.”
Unless you’re okay with casino-style biotech investing, stay away at these levels.
Tags: SPARC FY25 results, Sun Pharma Advanced Research Company, EPS -₹10.58, CMP ₹1,731, clinical-stage pharma India, R&D burn stocks, biotech investing India, EduInvesting analysis
