Top 10 Pharma Stocks in India

Top 10 Pharma Stocks in India: One of the most popular industries on the Indian stock market is the pharmaceutical industry, where the best pharma companies saw a 30 percent CARG return between 2009 and 2016. As a result, it has one of the largest concentrations of pharmaceutical firms. In light of the current situation, it is the world’s top supplier of generic medications.

Currently, India supplies approximately 60% of the world’s need for vaccinations and holds a 20% market share in terms of the number of generic medications supplied globally. Even in the foreign markets, Indian pharmaceutical companies provide close to 80% of the antiretroviral medications (used to treat AIDS).

Top 10 Pharma Stocks in India

Investing in pharma companies has a number of advantages:

1- Long-Term Profitability

Despite the volatility, pharmaceutical businesses might be appealing to long-term investors. Investors can earn significant returns if they invest at the correct time because the healthcare industry is growing rapidly and is becoming increasingly important to daily life.

2- Exponential Growth

Innovation, scientific discoveries, and technical advancements can spur exponential growth for many pharmaceutical companies because of the industry’s ongoing evolution.

Here are Top 10 Pharma Stocks in India

Sr. No.Company NameCMP – NSE (13 July 2021)
1Sun PharmaceuticalsRs. 849.50
2Dr. Reddy’s LaboratoriesRs. 4,465.10
3Divi’s LaboratoriesRs. 3,680.05
4CiplaRs. 934.50
5Biocon LtdRs. 323.95
6Aurobindo PharmaRs. 536.35
7Zydus LifesciencesRs. 363.25
8Abbott IndiaRs. 19,510.00
9Lupin LtdRs. 634.70
10Torrent Pharmaceuticals LtdRs. 1,487.00

1 – Sun Pharmaceuticals

It is the fourth-largest pharmaceutical corporation in the world and the biggest in India. The biggest international pharmaceutical company in India is this one. In 1983, it originally commenced operations. The business was started by Mr. Dilip Shanghvi, who also serves as the MD of Sun Pharmaceuticals. Sun became the biggest pharmaceutical business in India, the biggest in the United States, and the fifth-largest specialty generics firm in the world after purchasing Ranbaxy in 2014.

Some of the company’s subsidiaries include Ranbaxy Laboratories, Sun Petrochemical Pvt. Ltd, Sun Ophthalmic Inc, Alkaloida Chemical Company Zrt, and Chattem Chemicals Inc. It offers inexpensive medications in more than 150 nations across six continents.

2 – Dr. Reddy’s Laboratories

With a growing emphasis on other core priority markets including India, Russia, and China, Dr. Reddy’s Laboratories is one of the leading Indian generic players in the US market. The new leadership team’s targeted strategy, together with the already-existing non-core assets, has increased profitability. With increased US launch scale and quicker execution of multiple medications in emerging markets, earnings are anticipated to increase.

Margin would continue to improve as a result of this and a focus on cost-control measures. The US revenue has bottomed out, price erosion is expected to return to normal, and the increase in launch momentum will lessen the historical reliance on only a few products. The Company has successfully managed the ex-US business, as seen by the recent improvement in its profits performance.

Regulatory problems, delays in product releases in the US, and unfavourable foreign exchange swings are all risks, but they are by no means the only ones. Over the last three years, Dr. Reddy’s has been able to produce a compounded profit growth of 12 percent and a compounded revenue growth of 6 percent. Over the same time period, the company consistently reported a strong ROE of 13%. The company plans to enter the biosimilar market, which will support growth even further.

3 – Divi’s Laboratories

The largest provider of contract research and manufacturing services (CRAMS) in India is Divi’s Laboratories. The business focuses on backward integration and expansion capex. Due to the nature of its business, Divi’s benefits from price, volume, and currency tailwinds. An atmosphere of strong demand is favourable for the company. Additionally, Molnupiravir, an oral medication under research for the treatment of COVID-19, is manufactured by Divi’s under licence.

Recently, Divi’s been recognised as one of the top three API producers worldwide and as one of the top API businesses in Hyderabad. For the fiscal year 2018–19, Divi’s, an Indian public limited company, brought in Rs. 5500 crores ($780 million).

Over the previous five years, compound growth in sales and revenue was reported to be 9 and 12 percent, respectively. Due to the fact that exports make up around 85% of Divi’s revenue and the depreciation of its main export currencies (the USD and EUR), which may also be problematic, currency realisations have a significant impact on the company’s profits. A China recovery and the resulting decline in the China potential could also be risks in the future.


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4 – Cipla

In the home market, Cipla is a dominant force. The business is well-established in the chronic market and enjoys market dominance in specific chronic therapies including inhalation and respiration. With a focus on launching complicated generics for sustained growth, the company is establishing a US franchise. Additionally, it has moved its attention to India, which will quicken the trend of domestic demand. Given the US respiratory medicine shortage brought on by COVID-19, the approval of albuterol would guarantee an improvement in US growth and profits over the medium term.

Cipla Ltd. has 34 manufacturing facilities in India and markets its goods in more than 80 nations worldwide. 850.00 and 1,083.00 are its 52-week low and high, respectively. This company’s net value is Rs 57,245.24 crores (Approx.) due to its substantial shareholder and customer bases. Their shares had provided stockholders with a dividend yield of 0.56 percent.

Risks include unfavourable regulatory actions (especially from the USFDA) against facilities, unfavourable market dynamics affecting growth and profitability in important markets like South Africa, an expansion of the list of essential medicines (NLEM), which would have an impact on domestic revenue, and any delays in the approval of new products.

5 – Biocon Ltd

Since it began displaying, Biocon Ltd. has successfully marked its place in the fifth position. This business was established in 1978. Bangalore is where it has its headquarters. Generic APIs are produced by this Indian biopharmaceutical company and sold in more than 120 nations.

With a portfolio of biosimilars from Mylan (two of which have been marketed in the US), a relationship with Sandoz, and its own biosimilar products available worldwide, Biocon Ltd. is a leading biosimilar firm. Over the next two to three years, it is anticipated that the monetization of Glargine and other biosimilar pipeline products, the scaling up of Peg-filgrastim and Trastuzumab, and the value unlocking through the listing of Biocon Biologics’ biosimilar division will increase sales of biologics.

By FY22, Biocon wants to earn USD 1 billion (about Rs. 7,460 Crs.) in revenue from the biosimilars market alone. The company benefits since price erosion in the biosimilars market is now substantially lower than in other markets. In order to improve the company’s biosimilars business, Biocon recently announced that its subsidiary Biocon Biologics Limited (BBL) is acquiring Viatris’ biosimilars business for $3.3 billion. Although the purchase puts BBL into the value chain for biologics, the price paid for purchasing Viatris’ commercial infrastructure in developed areas is high.

6 – Aurobindo Pharma

Seventh-placed AurobindoPharma Ltd. is a major pharmaceutical company in India. This business, which is based in Hyderabad’s HITEC City, is a major player in the country’s pharmaceutical industry. Its market value is Rs. 45,588.95 billion (Approx.). This business serves customers in more than 125 different nations.

Leading US generic company Aurobindo Pharma has a significant foothold in established areas like Europe. Thanks to growing demand for generic injectables (with very little competition), a robust product pipeline, and anticipated demand for recently introduced medications, the US Company has a positive long-term growth outlook. Earnings would be driven in the coming years by a diversified portfolio in the US and the expansion of the injectable business.

Leading US generic company Aurobindo Pharma has a significant foothold in established areas like Europe. Thanks to growing demand for generic injectables (with very little competition), a robust product pipeline, and anticipated demand for recently introduced medications, the US Company has a positive long-term growth outlook. Earnings would be driven in the coming years by a diversified portfolio in the US and the expansion of the injectable business.

7 – Zydus Lifesciences

Zydus Lifesciences is a major player in India and has a significant market share in the US, driven by its complex product line. Its robust ANDA pipeline and the synergies from the wellness purchase are driving growth and margins. It is anticipated that Zydus Lifesciences will deliver significant growth and transparency of margins from its core markets.

The company benefits from a supply disruption because to the size of its US portfolio and its big oral and injectable pipelines. It has been able to rearrange its current portfolio to better serve the Indian market and has a balanced mix of acute and chronic medications for potential double-digit growth. Additionally, it is anticipated that wellness customers would rise, driven by sales and cost synergies.

According to management, India’s future prospects appear promising given a recovery in the pharmaceutical market, a normalisation of the infrastructure for healthcare delivery, and market share gains in important therapeutic areas. The company’s growth trajectory may also be aided by Zydus Life’s research and development investments in biologics, vaccines, and new chemical entities.

There is a robust product pipeline for the United States, which includes speciality and injectables. This might reduce pricing pressure and promote growth. Saroglitazar and Desidustat are two recent product introductions that have a lot of potential for future growth.

A decrease in debt has improved Zydus Life’s balance sheet. In the future, management plans to closely monitor debt reduction. This is positive and will strengthen the company’s financial position. The main advantages of Zydus Life include its improving balance sheet, solid return ratios, and strong profits projections. The threat of unfavourable regulatory proceedings against facilities and high leverage relative to peers still exists.

8 – Abbott India

Tenth place goes to Abbott India Ltd. It is a division of an American multinational corporation operating in India. Their market value is Rs 35,062.52 crores (Approx.).

The international healthcare and medical device company Abbott Laboratories is headquartered in Abbott Park, Illinois, in the United States. Wallace Calvin Abbott, a Chicago doctor, began the business in 1888 with the intention of creating well-known pharmaceuticals; now, it provides medical equipment, diagnostics, branded generic drugs, and dietary supplements. In 2013, it created AbbVie to house its research-based pharmaceuticals division.

9 – Lupin Ltd

Mumbai is home to the international pharmaceutical business Lupin Ltd. It is one of the top Pharma stocks in India because it is one of the largest generic pharmaceutical firms by global revenue. The market value of the company is Rs 41,790.85 crores (Approx.). In nations including the United States, Europe, Japan, Australia, South Africa, the Philippines, Mexico, and Latin America, it has a suitable market presence.

10 – Torrent Pharmaceuticals Ltd

The flagship business of the Torrent group is Torrent Pharmaceuticals Ltd. With operations in more than 40 countries and the production of more than 2000 items, it has managed to expand internationally and has its headquarters in Ahmedabad. The market value of this company is around Rs 46,656.40 crores (Approx.).

Conclusion

Hope you like the list of top 10 Pharma Stocks in India. Good luck with your investments!

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