Healthcare is an important sector in any country, and India is no different. The pharmaceutical industry plays a significant role in the health of the people in India. This is why the pharma market in India is a substantial and crucial aspect to track.
As the stock market grows in India, investors are looking out for emerging sectors. Pharma is one of the largest sectors in the world, with a lot of potential to grow.
The main objective of this blog is to look at the various pharma stocks in India and how you can benefit from investing in them.
Indian Pharma Sector – An overview
The Indian Pharma Sector is one of the country’s most vibrant and fastest-growing sectors. It is a vital driver of the country’s economy, contributing significantly to its GDP. The sector is expected to grow at a CAGR of 9.5% over the next five years.
The Indian Pharma Sector is highly competitive and is home to some of the world’s leading pharmaceutical companies. The sector is highly regulated and is subject to strict quality control measures. The industry has a strong R&D base and constantly innovates to bring new and better medicines to the market. The sector is expected to reach 4,53,975 crores by FY23.
Indian Pharma is a significant employer, employing over 2 million people directly and indirectly. The sector substantially impacts the country’s healthcare system and is a significant contributor to the country’s health and well-being.
List of Top 5 Pharma Stocks to Buy in India
The Indian pharma sector offers a wide range of investment opportunities for investors. The industry is expected to benefit from the growing demand for generic drugs in the developed markets. Additionally, the sector benefits from the government’s initiatives to promote its industry growth.
Let’s look at some of the leading pharma stocks in India. These stocks are expected to generate solid returns for investors in the long term.
Dr. Reddy’s Laboratories
With a growing emphasis on other primary focus markets, including India, Russia, and China, Dr. Reddy’s Laboratories is one of the leading Indian pharmaceutical competitors in the US market. The new leadership team’s targeted strategy and the existing non-core assets have increased the company’s profitability.
Profits are predicted to rise due to a more significant US launch and a quicker rollout of certain medications in developing markets. As seen by the recent increase in its financial performance, the Company has effectively handled the ex-US business.
The business intends to enter the market for biosimilars, which will help it grow even more.
Divis Laboratories Ltd.
The leading supplier of contract research and manufacturing services (CRAMS) in India, Divi’s Laboratories is one of the best pharma company in India. The company focuses on backward integrations and expansion capex. Due to the nature of its company, Divi’s profits from price, volume, and currency tailwinds. An atmosphere of solid demand is favorable for the company.
Additionally, Divi is the licensed API producer for Molnupiravir, an oral medication under research for the treatment of COVID-19.
Want to Invest in Divi’s Laboratories? Check out the Divi’s Laboratories Share Price on SMC
Abbott India Ltd.
Abbott India Limited is among the best pharma stocks to buy in India. The company has a strong presence in the country with many products in its portfolio. Abbott India is also expanding its operations in India and is expected to grow at a healthy pace in the future.
The stock is trading at a discount to its intrinsic value and is an excellent long-term investment.
Want to Invest in Abbott India Limited? Check out the Share Price of Abbott India Limited on SMC
Cipla is another best pharma company in India. It is well-established in the chronic market and has market dominance in specific regular therapies, including inhalation and respiration. The company is establishing a US brand that emphasizes launching complex generics for sustained growth.
The company is establishing a US franchise intending to introduce sophisticated generics for consistent growth. It has also turned its attention toward India, which would quicken the trajectory of domestic demand. The clearance of albuterol would guarantee an increase in US growth and profits over the medium term, given the US scarcity of respiratory drugs caused by COVID-19.
Want to Invest in Cipla Ltd? Check out the Cipla Ltd Share Price on SMC
Sun Pharmaceutical Industries
The world’s fourth-largest specialized generic pharmaceutical firm is Sun Pharmaceutical Industries Ltd. (Sun Pharma). The company serves more than 100 nations globally with high-quality, reasonably priced pharmaceuticals backed by more than 40 production facilities and regarded as reliable by patients and medical experts.
Its medications treat chronic conditions in psychiatry, orthopedics, neurology, and gastroenterology. Additionally, Sun Pharma produces APIs for other pharmaceutical companies.
Want to Invest in Sun Pharmaceutical Industries? Check out the Share Price of Sun Pharmaceutical Industries on SMC
Overall, we have seen that the Pharma sector is witnessing growth in the Indian market. With the growing economy and increased disposable income, the Indian consumer will drive the Pharma industry.
The Indian pharmaceutical market today is expected to have an ultimate rise by the end of 2022. This is the right time to invest in pharma stocks India. We hope this blog post has helped you to understand why these are the best pharma stocks to buy in India.
Disclaimer: The provided information is solely for educational purposes. Investments in the stock market are prone to risk; before investing, thoroughly read all relevant documents or consult an expert