India ranks third in the world in terms of pharmaceutical production volume. However, this is not the only factor that makes the top pharma stocks in India stand out. As of 2024, the Indian pharmaceutical industry is worth $65 billion, and it is expected to grow to $130 billion by 2030.

If you want to make your financial portfolio grow, you must know some of the best pharma stocks in India in 2024. This industry is ready for investment, thanks to increased healthcare demand, cutting-edge medicinal breakthroughs, and supporting government regulations. Choosing the best pharma stocks in India will set you up for significant returns tomorrow.

 

What You Need to Know about the Indian Pharmaceutical Industry?

India has a prominent role in the global pharmaceutical market. It has tremendously supported the development of affordable and effective medicines.

• Generics Powerhouse: India has become the world's largest supplier of generic medicines and controls around 20% market share. The country’s strength is producing generic medicines at a lower cost due to its manpower and efficient production technology.
• Exports and Global Reach: Today the Indian pharmaceutical industry exports to numerous countries, boosting the economy of the country.
• Regulatory Compliance: Quality control has been put in place by India’s drug regulatory body, for instance, the CDSCO to ensure that products are as per international quality standards. This commitment has gone a long way in ensuring that Indian companies tap into the trust of global markets.

 

Top Pharma Companies in India 2024

Below is the table that categorizes the best pharma stocks of 2024 based on analyst ratings:

Pharma Stocks in India	Market Capital
Pfizer	₹22,550Crore
Fortis Healthcare	₹34,800 Crore
Sun Pharmaceutical Industries	₹3.62 lakh Crore
Ajanta Pharma	₹30,340 Crore
Abbott India	₹59,240 Crore

 

Brief Overview of the Best Pharma Stocks to Buy in India

Before you invest in these pharma stocks, consider their brief overview:

 

1. Pfizer

Pfizer Limited is a pharmaceutical company that deals in the production, marketing, trading, and exporting of pharmaceutical products and services. Its product line consists of vaccines, contraceptives, pulmonary arterial medications, and immune system supplements, among others. Pfizer also exports its products to over 50 countries.

 

2. Fortis Healthcare

Fortis Healthcare Limited is a Gurgaon-based company and is a subsidiary of IHH Healthcare Berhad. It is one of the leading integrated healthcare service providers in India. Fortis also has 28 healthcare facilities and over 400 diagnostics centers across India, the United Arab Emirates, Sri Lanka, and Nepal. They manage a broad spectrum of healthcare, which includes diagnostics, primary care, daycare, and specialty hospitals.

 

3. Sun Pharmaceutical Industries

Sun Pharmaceutical Industries Limited was incorporated in 1983 and provides good quality and low-cost drugs to over 100 countries in the world. The company develops and distributes a broad portfolio of pharmaceutical products encompassing different therapeutic classes of both generic and specialty products.

Currently, it has over 2000 molecules through various forms of medication, including liquids, tablets, capsules, ointments, creams, injectables, and inhaler forms.

 

4. Ajanta Pharma

Ajanta Pharma has 7 modern production facilities in India. Out of these, 6 centers are involved in the production of finished formulations, while 1 center is associated with the production of Active Pharmaceutical Ingredients (APIs). The company provides specialized and generic products that can be used for chronic and acute therapy.

 

5. Abbott India

Abbott India Limited is a local affiliate of the multinational company Abbott Laboratories based in Mumbai. The company is engaged in research, development, production, and distribution of several products. It includes drugs, nutritional products, diagnostic equipment, and diabetes and vascular care devices.

 

Consider These Factors Before Investing in Pharma Stocks in India

Investing in the pharma stocks in India necessitates considering numerous factors, including:

• Market Capitalization: Market capitalization is a figurative measure of a company’s size and serves as an indicator of the company’s rank in the industry. In general, organizational size, as represented by higher market capitalization, indicates more established, diversified, and less risky businesses.
• Financial Health: Study the overall revenues, gross and net profit margins, total liabilities, and cash flow of the company. The ideal financial ratios include healthy revenues, sustainable profitability, and moderate debt loads to reduce risk. 
• Product Portfolio: Review the company’s current product portfolio by assessing its therapeutic areas, patent exclusivity, and sales revenue. A diverse product portfolio with several best-selling products and the production of new products in the pipeline can be an effective competitive strategy and can ensure sustained revenues.
• Regulatory Compliance: The pharmaceutical market is strictly governed, and the companies have to strictly follow the rules and regulations that have been set by various acts.

 

Conclusion

Pharma sector stocks can offer higher returns and growth prospects if adequate research has been conducted on the securities to be purchased. You may have a potential returns from adding the best pharma stocks to your portfolio. However, you must monitor regulation changes, patent expirations, research and development risks, competition, and global issues.

Disclaimer: This blog is posted solely for educational purposes. The securities mentioned are examples and not recommendations. It is based on various secondary sources from the internet and is subject to change. Kindly consult an expert before making any related decisions.