Where medical advances are continuously reshaping the future, pharmaceutical companies are taking the lead in making cutting-edge discoveries and life-saving medicines and treatments. Pharmaceutical stocks give investors more than a significant part in the medical revolution! These companies also present an intriguing opportunity for huge profits.
What are pharmaceutical stocks?
In simple terms, pharma stocks are the shares of publicly traded pharmaceutical businesses. These companies are the lifeblood of the medications we consume and manufacture everything from generic pharmaceuticals to over-the-counter remedies and prescription drugs.
Top 10 Pharmaceutical Stocks to Invest in 2024
The pharmaceutical industry, an indispensable catalyst for India’s economic prosperity in recent years, has made remarkable strides.
Here is a comprehensive compilation of the most promising stocks to invest in in 2024.
- Sun Pharmaceutical Ltd
- Cipla Ltd
- Dr Reddy’s Laboratories Ltd
- Torrent Pharmaceuticals Ltd
- Gland Pharma Ltd
- Abbott India Ltd
- Alkem Laboratories Ltd
- Zydus Lifesciences Ltd
- Aurobindo Pharma Ltd
- Lupin Ltd
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Overview of Best Pharmaceutical Stocks to Invest in India
Sun Pharmaceutical Ltd
Sun Pharmaceutical Industries Ltd is one of India’s top multinational pharmaceutical companies with a market cap of 3,18,187 crores. Based on sales, it is ranked fourth among all pharmaceutical businesses in India, especially in the generic pharmaceutical industry.
Cipla Ltd
Cipla Ltd is a leading Indian multinational pharmaceutical company. It operates globally in 80+ countries and specialises in APIs, generics, OTC products, biosimilars, and nutraceuticals. It is known for respiratory, anti-infectives, cardiovascular, and oncology drugs; Cipla’s commitment extends to diverse healthcare solutions.
Dr Reddy’s Laboratories Ltd
Dr. Reddy’s Laboratories is prominent for its inventive pharmaceuticals and a dynamic presence in more than 100 nations. The company focuses on providing premium, reasonably priced drugs, significantly improving global healthcare accessibility.
Torrent Pharmaceuticals Ltd
Torrent Pharmaceuticals Ltd is a critical player in India’s pharmaceutical landscape, prioritising research, development, and production of high-quality yet affordable medicines.
Renowned for cardiovascular, antibiotics, anti-diabetic, anti-inflammatory, and anti-infective drugs, their popular brands, including Cadila, Torleva, Torlip, and Torleva XR, highlight their substantial industry influence.
Gland Pharma Ltd
Gland Pharma Ltd, a pharmaceutical powerhouse headquartered in the culturally rich city of Hyderabad, is a formidable player in the Indian pharmaceutical landscape. Renowned for top-quality and cost-effective products, their global impact includes antibiotics and anti-diabetics, which include Cephalosporin and Penicillin.
Abbott India Ltd
Abbott India was hailed as 2019’s Innovation Luminary and remains dedicated to pioneering pharmaceutical excellence and innovation. Renowned for expertise in Women’s Health, Gastroenterology, CNS, Metabolics, MultiSpecialty, Vaccines, and Consumer Health, Abbott India exhibits remarkable resilience in the face of challenges.
Alkem Laboratories Ltd
Alkem Laboratories is a major competitor in the pharmaceutical sector. Addressing diverse therapeutic domains — cardiovascular, central nervous system, gastrointestinal, anti-infective, diabetology, and nutrition, Alkem Laboratories Ltd boasts a robust domestic foothold and global outreach spanning 50 countries. It has been awarded as one of the best pharma companies in 2024.
Zydus Lifesciences Ltd
Recognised as a top player in Indian pharma stocks, the company prioritises research, manufacturing, and quality control. Their mission is to deliver impactful pharmaceuticals, ensuring quality that resonates profoundly within the healthcare sector.
Aurobindo Pharma Ltd
Aurobindo Pharma is famous for making top-notch medications, which include sectors like heart health, diabetes, malaria, and infections. Being one of India’s major generic drug producers, they reach over 150 countries, showing their global impact.
Lupin Ltd
Lupin Ltd, a key player in the generic drug market, features branded products such as Metoject, Lupitac, and Lupizole, alongside generics like Amlodipine, Montelukast, and Cetirizine. With over 200 APIs and a foray into animal health, they’re a comprehensive pharmaceutical force, spanning both human and veterinary domains.
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Latest Performance of Top 10 Pharmaceutical Stocks
| Company Name | CMP Rs. | Mar Cap Rs.Cr. | 1Yr return % | ROCE % | CMP / BV | Debt / Eq | ROE % | EPS 12M Rs. | P/E | Div Yld %
|
| Sun Pharmaceutical Ltd | 1,500 | 359,804 | 49.01 | 16.4 | 7.05 | 0.32 | 16.6 | 7.00 | 38.43 | 0.77 |
| Cipla Ltd | 1,420 | 1,14,661 | 37.71 | 18.0 | 5.43 | 0.00 | 12.8 | 31.15 | 29.04 | 0.60 |
| Dr Reddy’s Laboratories Ltd | 6160 | 102755 | 38.73 | 26.73 | 5.34 | 0.00 | 21.6 | 157.3 | 19.65 | 0.65 |
| Torrent Pharmaceuticals Ltd | 2,646 | 89,549 | 72.25 | 19.8 | 15.04 | 0.71 | 20.0 | 31.07 | 62.52 | 0.83 |
| Gland Pharma Ltd | 1,996 | 32,907 | 52.75 | 14.7 | 4.13 | 0.00 | 10.8 | 47.12 | 41.8 | 0.00 |
| Abbott India Ltd | 28,258 | 60,049 | 34.62 | 41.1 | 14.72 | 0.00 | 31.6 | 446 | 52.4 | 0.64 |
| Alkem Laboratories Ltd | 5,311 | 63,503 | 73.03 | 13.7 | 4.34 | 0.13 | 12.1 | 94.88 | 42.3 | 0.47 |
| Zydus Lifesciences Ltd | 802 | 81,184 | 67.29 | 15.0 | 3.65 | 0.35 | 13.7 | 15.06 | 26.0 | 0.75 |
| Aurobindo Pharma Ltd | 1,003 | 58,746 | 139.48 | 9.20 | 1.69 | 0.23 | 7.47 | 21.00 | 24.9 | 0.30 |
| Lupin Ltd | 1,606 | 73,170 | 113.80 | 5.73 | 1.60 | 0.03 | 3.33 | 9.35 | 40.8 | 0.25 |
Overview of the Pharmaceutical Industry in Indian Market
The pharmaceutical industry in the Indian stock market stands as a cornerstone of economic strength and innovation. The Indian pharma stocks have witnessed a remarkable journey over the last five decades, experiencing significant growth in domestic and global markets.
In 1969, they contributed merely 5% to medicine consumption, with the majority belonging to the worldwide pharma industry. In 2020, the tables have turned – “Made in India” medicines now dominate, commanding a robust 80% share in the domestic pharmaceutical market.
Advantages and Risks Associated with Investing in Pharmaceutical Stocks
Navigating the financial markets, investing in pharmaceutical stocks brings forth a host of advantages:
● Growth and Stability
Investing in pharmaceutical stocks offers long-term growth potential and steady returns.
● Resilience
The sector is resilient because of its importance in global health and ongoing innovation.
● Regulatory Support
Tight regulatory policies guarantee efficacy and safety requirements.
● Stable Returns for Investors
The industry enjoys a steady return from a consistent demand for healthcare solutions.
However, investing in pharmaceutical stocks comes with inherent risks.
- Clinical trial failures, patent expirations and regulatory issues threaten individual companies.
- Generic drug entry, market competition, and healthcare policy changes can impact profitability.
- Additionally, external factors like global health crises and economic downturns can also introduce volatility and affect pharmaceutical stock performance.
Why should you invest in Pharmaceutical stocks in India?
Pursuing investment opportunities in the pharmaceutical domain within the Indian market proves to be highly beneficial, considering the notable impact of the pharmaceutical industry on the nation’s G3DP.
The remarkable ascent of this sector is due to a multitude of factors, encompassing the escalating need for generic medications, supportive legislation enacted by the governmental authorities, and the burgeoning healthcare infrastructure that continues to expand exponentially.
How to Start Investing in Pharmaceutical Stocks?
SMC, your dedicated ally in navigating the complexities of the financial realm, transforms your investment journey into an enriching experience within the pharmaceutical stocks domain.
Here are three easy steps to start investing in Pharma stocks :
- Go to the official website of SMCtradeonline or simply download the app
- Open a free demat account
- Start investing
WHY SMC
- 20 Lac+ unique clients
- 33+ Years of Serving
- Advance Technical Analysis
- Free Demat Account
Conclusion
Pharmaceutical stocks in India present investors with a compelling journey marked by innovation, growth, and resilience. The sector’s pivotal role in the global healthcare landscape and favourable market conditions position pharmaceutical stocks as a lucrative investment avenue. However, novice investors must conduct thorough research and seek professional advice from financial advisers or trading in trustable platforms like SMC to capitalise on these opportunities.
References:
https://www.cnbctv18.com/healthcare/pharmaceutical-industry-2024-key-trends-top-picks-future-projections-iifl-sanford-bernstein-18725571.htm
