A potential trade shock is building as the US considers tariffs of up to 100% on countries still buying Russian oil, with India squarely in focus. This puts cheap Russian crude and India’s export access to the US on the same scales, which could reprice risk in both energy and export stocks. This article walks through three stocks exposed to this news so you can evaluate where the pressure might build next.
Sun Pharmaceutical Industries (NSEI:SUNPHARMA)
Overview: Sun Pharmaceutical Industries is a large Mumbai headquartered generic drug manufacturer that develops and sells a wide range of branded and generic medicines, active pharmaceutical ingredients and over the counter products across areas such as diabetes, cardiology, oncology, dermatology and neurology in India, the US and other international markets.
Operations: Sun Pharmaceutical Industries generates its revenue primarily from pharmaceuticals, with this segment contributing about ₹599,105 million.
Market Cap: ₹4,666.7 billion
Sun Pharmaceutical Industries has significant exposure to the US market at a time when Washington is openly weighing steep tariffs on countries that keep buying Russian oil. The stock is premium priced, with a high P/E and heavy US export dependence, which raises policy risk that may be difficult to quantify. Earnings have grown and the company is focusing on higher margin specialty drugs. At the same time, funding includes higher risk external borrowings and the dividend record is patchy. Combined with relatively low forecast returns on equity and a management team with short average tenure, this presents a business where solid fundamentals sit alongside assumptions that could be tested if US India trade relations change materially.
Sun Pharmaceutical’s premium P/E and significant US exposure could be obscuring how sensitive the story is to a tariff shock. Before assuming the current setup holds, read the 2 key rewards and 1 important warning sign
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Hindustan Petroleum (NSEI:HINDPETRO)
Overview: Hindustan Petroleum is a Mumbai headquartered refiner and fuel marketer that turns crude oil into petrol, diesel, LPG and other petroleum products, then sells them through its fuel stations, LPG distribution network and bulk channels across India and overseas, while also branching into natural gas, petrochemicals and renewables.
Operations: Hindustan Petroleum generates the bulk of its revenue from its Downstream Petroleum segment at about ₹5,035.4 billion, with a much smaller contribution of roughly ₹5.5 billion from All Other activities and an inter segment revenue adjustment of ₹1.9 billion.
Market Cap: ₹836.3 billion
Hindustan Petroleum sits on the fault line of this US tariff story. It benefits from discounted Russian crude that helps keep fuel prices and inflation in check, yet any policy response that curbs those purchases could lift input costs and compress already thin margins. Earnings forecasts indicate strong growth but recent results included a sizeable quarterly loss and profit margins around 0.4%, while the stock trades on a rich P/E and carries notable borrowing and governance concerns. In addition, there has been a rapid sequence of CFO and senior finance changes through mid 2026. Taken together, the company appears more exposed than many investors may realise if tariffs lead to a material change in its crude sourcing approach.
Hindustan Petroleum’s rich P/E, wafer thin margins and recent quarterly loss suggest investors may be underestimating how fast sentiment could turn if crude sourcing shifts. Read the 2 key rewards and 3 important warning signs (1 is major!)
Tata Motors (NSEI:TMCV)
Overview: Tata Motors is a Mumbai based auto manufacturer that designs, builds and sells commercial vehicles such as trucks, buses, pick ups and small commercial vehicles, as well as electric vehicles, across India, South Korea and other international markets, backed by spare parts, accessories and after sales services.
Operations: Tata Motors generates almost all of its ₹838.6 billion revenue from automotive and related commercial vehicle activity, with India contributing ₹736.98 billion and the rest coming from South Korea and other international markets.
Market Cap: ₹1,668.5 billion
Tata Motors may be of interest to investors following US tariff risk, but the situation appears more fragile than headline growth forecasts suggest. Earnings are expected to rise quickly and ROE is forecast at 31.7%, yet margins have slipped from 5.5% to 3.6% and a one off loss of ₹37.3 billion still affects reported profitability. The stock trades on a relatively high P/E and above modelled cash flow value, while relying fully on external borrowing, which raises funding risk if conditions tighten. Heavy export exposure, including higher end vehicles heading to the US, now faces potential tariff and energy cost pressure at the same time a relatively new management team is still bedding in.
Tata Motors’ growth story sits on thinner margins, a one off ₹37.3 billion loss and full reliance on external borrowing. This picture could look very different if US tariffs bite. Get the full context in the analysis report for Tata Motors
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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