The best Pharma companies in India hold a lucrative option for domestic and foreign investors to invest in. The Indian pharma sector not only holds an important position in India but plays a crucial role in the global pharmaceutical industry too.
India is the largest generic medicine provider across the globe. Indian pharma sector supplies more than half of the total global demand for various vaccines and specifically in the US, almost 40% of generic medicines come from India. India ranks 3rd globally in pharmaceutical production parameters by volume and 14th by value.
India’s pharmaceutical industry is expected to reach $65 billion by 2024 and $125 by 2030 with an annual growth rate of over 10%. The sector is expected to scale its CAGR up by 35% from 2020 to 2025 to reach USD 50 billion. India is the 12th largest medical goods exporter in the world.
Current performance of Nifty Pharma
Current Market Price(CMP) : Rs. 12,629/-
52-week low: Rs. 12,290/-
52-week high: Rs. 14,938/-
We can see the overall pharma sector is under pressure now and trading at a near 52-week low level. This may be an opportunity to take a fresh position in these companies. You should not miss the time to make value investments in this sector.
Top 8 Best Pharma Companies in India
Pharma Companies boomed during the period of COVID-pandemic. At the time of the stock market breakdown, only pharma companies bought a smile to the face of their investors. Almost all the best pharma companies in India made their values felt and traded at their lifetime high. Although there is still a better opportunity exists for the value investors to invest in Indian pharma industry stocks.
With this article, we will bring you the minute details you should know in advance before investing in any pharma company stocks. We will highlight the top 8 best pharma stocks to buy in India. After understanding their business and products we straightaway go to their crucial financial data for better understanding.
Sun Pharmaceutical Industries Ltd.
Sun Pharmaceutical Industries Limited is the best pharma company in India that offer generics, branded generics, over-the-counter products, specialty products, anti-retroviral, and Active Pharmaceutical Ingredients (APIs). The company has a presence in over 100+ countries with over 2000 products, is the largest pharma brand in India, and is the 4th largest generic pharmaceutical company globally.
Sun offers medical solutions in almost all formats like Ointment, creams, tablets, Capsules, Injectables, and Liquids.
Endorse popular brands like Revital(vitamin supplement for health) and Volini(pain-relieving spray).
Cipla Ltd.
Cipla is a very popular brand in India that offers products for therapeutic areas, including children’s health, cardiovascular solution, Children’s health product, dermatology, diabetes, HIV/AIDS, deceases caused by infection, and critical care.
Cipla has a strong presence in chronic segment therapies like respiratory issues and inhalation. Cipla has a strong focus on the Indian market and is expected to generate tremendous growth in the future.
The company has recently opted for measures to cut its overall cost that could have a huge positive impact on margin trajectory and makes it one of the best pharma stock to buy for the long term.
Divis Laboratories Ltd.
Divis Lab is a leading manufacturer of Active Pharmaceutical Ingredients, Nutraceutical ingredients, and custom synthesis of APIs and intermediates. Since its inception in 1990, Divi’s is famous for its high-quality products and reach more than 95 countries.
With more than 17,000 highly skilled employees, 500 scientists, 3 R&D centers, and 3 global regulatory standard-compliant manufacturing units, Divis Labs becomes one of the leading pharma companies in India and the World.
Divi’s recently has made a place in the top 3 API manufacturers in the world.
Torrent Pharmaceuticals Ltd.
Coming from the Indian brand Torrent Group, Torrent pharma counted among the market leaders in the therapeutic cardiovascular segment, gastrointestinal, central nervous system, pulmonology, and women’s healthcare.
Torrent Pharma has a presence in 40+ countries, especially in Germany and Brazil. With over
2000 products Torrent pharma has a promising existence in dermatology, diabetology, anti-
infectives, nephrology, oncology, gynecology, and pain management. The company has 8 manufacturing plants and more than 700 scientists.
Alkem Laboratories Ltd.
Established in the year 1973, Alkem Labs is the originator of famous brands like ‘Clavam’, ‘Pan-D’, and taxim-O’ that feature among the top 50 pharmaceutical brands in the country. Alkem Labs has become India’s largest generic and specialty pharmaceutical company.
The company has a strong presence in the global market too. 33% of the total revenue of Alkem Labs comes from offshore sales. It offers over 800 brands and grows in 50+ countries with 20 manufacturing units and over 17,000 efficient officiary.
Zydus Lifesciences Ltd.
Zydus Lifesciences formerly known as Cadila Healthcare Limited is an Indian multinational pharma company, primarily engaged in manufacturing generic drugs, it manufactures a range of diagnostics, skincare products, and OTC(Over The Counter) products, and herbal products. Zydus also produce generics for Hepatitis-C treatment.
Zydus Lifesciences holds the 4th position in the list of top Indian pharma companies. With over 25,000 versed employees Zydus spreads its business to 4 continents(US, Europe, Latin America, and South Africa). The company has 1400 researchers, 4 R&D sites, and 10 manufacturing units throughout the world.
Zydus Lifesciences ranked 100 on the Fortune India 500 list in 2020.
Dr.Reddys Laboratories Ltd.
Dr. Reddy’s Laboratories Ltd. is well-known for providing affordable and innovative medicines. The company forays into businesses like Pharmaceutical Services & Active Ingredients, Proprietary Products, and Global Generics. Also offers products and services including APIs, generics, biosimilars, custom pharmaceutical services, and differentiated formulations.
The prime therapeutic areas of focus of the company are gastrointestinal, oncology, dermatology, cardiovascular, diabetology, and pain management. Dr. Reddy’s operates in markets across the globe and has a prominent presence in over 56 countries. The company has 23,000 highly efficient employees, 23 manufacturing units, and 9 R&D centers.
Biocon Ltd.
Biocon engages manufacturing of generic medicines, Active Pharmaceutical Ingredients(APIs), novel biologics, antibodies, and biosimilar insulins, which are sold as branded formulations in India.
Biocon has a presence in over 120 countries across the globe. The company has over 1,250 granted patents. The company has a strong R&D team that focuses on finding new ways to treat cancer, diabetes, and autoimmune diseases. Biocon has formulations for the Indian market which include immunotherapy, oncology, nephrology products, and metabolic.
The comparison table of the best pharma companies in India that discussed company’s financials:
| Companies Name | Market Cap (in Cr.) | Face Value (in Rs.) | CMP (in Rs.) | 52 week High (in Rs.) | 52 week Low (in Rs.) | Dividend yield (%) | Promoter’s holding(%) | Debt to equity ratio (%) | Return over last 3 years (%) |
| Sun Pharma | 2,03,753 | 1 | 882 | 967 | 653 | 0.88 | 54.5 | 0.04 | 28.8 |
| Cipla | 74,264 | 2 | 935 | 1,083 | 850 | 0.54 | 33.6 | 0.05 | 19 |
| Divis Labs | 1,12,406 | 2 | 4,281 | 5,425 | 3,789 | 0.47 | 51.9 | 0 | 37.6 |
| Torrent Pharma | 42,344 | 5 | 2,583 | 3,304 | 2,484 | 1.40 | 71.2 | 0.71 | 15 |
| Alkem Labs | 35,341 | 2 | 2,906 | 4,070 | 2,832 | 1.02 | 57.1 | 0.21 | 20 |
| Zydus LifeScience | 34,152 | 1 | 341 | 674 | 319 | 1.05 | 74.9 | 0.29 | 7.44 |
| Dr.Reddys Labs | 64,541 | 5 | 3,924 | 5,615 | 3,654 | 0.64 | 26.7 | 0.16 | 11.4 |
FAQs :
- Are pharmaceuticals a good investment in India?
- India’s pharma industry is stubborn with a hefty current valuation of USD 41.9 billion which is expected to grow to USD 65 billion by 2024 and the overall biotechnology sector is expected to reach 150 billion USD by 2025. So, as a sector, Pharma is very promising. Investors can make a good amount of money investing in, but you must know the fundamentals and the future prospect of the company.
- What is the future of the pharma industry for India in the next 10 years?
- According to the Economic Survey report 2021, India’s pharmaceutical market is expected to grow triple than now in the coming decade. According to researchers, India’s pharmaceutical market will reach USD 130 billion by 2030. So, despite being a risky sector to invest in, pharma is one of the emerging sectors to become in coming years.
- Which is the No. 1 Pharma company in India?
- There are several market leaders in India’s pharma industry and almost all are doing well. Some are old players and the rest are newcomers. Sun Pharma has become the largest pharma brand in India with the leading Market capitalization. Also, Sun had able to bring a good amount of return in the last couple of years to its investors.
So, we could give the crown to Sun Pharmaceutical Industries Ltd.
- Which one is the Best Pharma Companies in India?
- All companies we have shortlisted for you are available in excellent valuation. You can choose any of them after doing your own research.
- Which are the best pharma companies in India to invest in for the long term?
- How proactive the company’s R&D wing is, directly impacted its long-term profitability. Some patented entry into a new domain of treatment can fuel up the market price that benefits the investors.
All companies we took, are almost debt-free, a concern for long-term investors. But, when choosing the best, you may go with Divi’s Labs or Sun pharma, both generated a good wealth over time, and in Stock Market, there is a popular proverb that “history repeats itself”.
Note – You can read our article “Top 10 Monopoly Stocks in India“
