Best Pharma Stocks in India

Introduction

Over the last five decades, Indian pharma stocks have witnessed tremendous growth in domestic and global markets. While ‘Made in India’ medicines managed to capture a mere 5% share of medicine consumption in 1969 (the rest 95% share was with the global pharma), the ‘Made in India’ share in the Indian pharma market is now a healthy 80% in 2020.

In this blog, we have picked some best pharma stocks in India for 2024. Let’s see these top pharma stocks in detail.

Indian Pharma Industry- Overview

The Indian pharma industry is the 3rd largest in the world and produces a huge volume of products. The sector has grown at a CAGR of 9.43% in the last 9 years. India is the biggest generic drug provider in the world, and pharmaceutical exports stood at over $25 billion during FY2023.

Affordable vaccines and generic medicines make up the Indian pharmaceutical industry. The product segments that comprise the entire range include generic drugs, vaccines, over-the-counter medicines, etc.

Sales of the pharma sector domestically are expected to go up by 8% to 10% during FY2023-24. This growth comes with increasing expansion in the domestic market and is borne out of increased exports going to regulated markets. So far, India has a 5.71% share of the global market in the pharma sector.

 

 

Government Health care Policies

Policies in health care have been framed by the Government from time to time. For scaling up the healthcare sector, the Government of India has undertaken several initiatives, such as Pradhan Mantri Bhartiya Janaushadhi Pariyojana (PMBJP), Production Linked Incentive (PLI) Scheme for Pharmaceuticals, Promotion of Bulk Drug Parks Scheme, Pharmaceutical Technology Upgradation Assistance Scheme (PTUAS), among others.

Additionally, according to the latest report from EY FICCI, the Indian pharmaceutical market is likely to touch around US$ 130 billion by the end of 2030.

Best pharma stocks in India in 2024

Various pharma stocks in India have strong financials, have generated great revenue, and have driven good returns yearly. Below is the pharmaceutical stocks list for 2024.

1. Pfizer

Pfizer Limited was incorporated in 1950. It is a pharmaceutical manufacturer, marketer and exporter of pharmaceutical products. It manufactures from its facility located in Goa and manufactures through various third-party manufacturers located all over India.

Pfizer Ltd lists vaccines, cardiac drugs, maternal nutrition supplements, anti-infectives, gastrointestinal drugs, drugs for relieving pain, anti-inflammatory drugs, contraceptives, nutrition, Pfizer biontech vaccine and immunity boosters as well as respiratory drugs.

Pfizer’s vaccine business primarily focuses on Prevenar 13, a pneumococcal conjugate vaccine for infants, toddlers, adolescents, adults and the elderly given in primary vaccination.

The Pfizer PE ratio is 43.2, ROE is 16.1%. The book value is 786. The market cap of Pfizer is 26,051 Cr. Pfizer share price is 5,694 as of 16 October 2024.

This company has 63.92% reserved for promoters, 3.22% for foreign Institutions (FIIs), the public 17%, and DIIs 15.83% as of June 2024.

Pfizer stock return for 1 year is 45.3%

2. Fortis Healthcare.

As a subsidiary of IHH Healthcare Berhad, Fortis Healthcare Limited is headquartered in Gurgaon, India, one of the country's largest healthcare organizations, having 28 healthcare facilities and over 400 diagnostics centers spread across India, the United Arab Emirates (UAE), Sri Lanka, and Nepal.

It caters to a wide portfolio of healthcare facilities like specialty hospitals, primary care, diagnostics, and daycare. Fortis Healthcare Limited is the subsidiary of IHH Healthcare Berhad and is headquartered in Gurgaon. It is also one of the largest healthcare groups in the country operates 28 hospitals, and there are more than 400 diagnostic centers in India, Nepal, Sri Lanka, and the United Arab Emirates.

It operates a complete range of health facilities: diagnostics, primary and daycare, and specialty hospitals.

Fortis PE ratio is 71.4%, ROE is 7.85%. The book value is 102. The Fortis Healthcare market cap is 45,852 Cr.

This company has 31.17% reserved for promoters, 23.31% for foreign Institutions (FIIs), public 13.22% for, and DIIs 32.31% as of June 2024. 

Fortis shares 1 year returns are 80.4 %.

3. Sun Pharmaceutical Industries

Having originated in 1983, Sun Pharmaceutical Industries Limited emerged to become one of the world's largest generic pharmaceutical companies. Moreover, it is known as the 4th biggest specialty generic pharmaceutical company in the world along with 43 manufacturing units.

With its high-quality and affordable medicines, Sun Pharma sells medicines to over 100 countries.  Its portfolio contains more than 2,000 molecules across multiple dosage forms like liquids, tablets, capsules, ointments, creams, injectables, and inhalers.

Sun Pharma sells over 30 billion doses a year. It covers all major therapeutic areas, including gastroenterology, nephrology, neuropsychiatry, urology, cardiology, oncology, etc.

The Sun Pharma PE ratio is 43.2, ROE is 16.7%. The book value is 265. The market cap of Sun Pharma is 4,55,226 Cr.

This company has 54.48% reserved for promoters, 17.23% for foreign Institutions (FIIs), 0.11% for Government, for public 9%, and DIIs 19.17% as of June 2024. 

Sun Pharma Stock 1 year returns are 67%.

 

Conclusion

Indian pharmaceutical companies, such as Pfizer, Fortis Healthcare, Sun Pharmaceutical Industries, etc. have been performing exceptionally well and consecutively for a long time. They had sound finances, quality products, and investor favorites for 2024. 

These Stocks might also rank as one of the top pharma stocks for future performance besides being helped by the government initiatives in this sector. Investing in such companies could be a good decision for any investor interested in the pharmaceutical industry.

 

Disclaimer

This blog is NOT any buy or sell recommendation. We do NOT encourage/advise/suggest/recommend anyone to involved or invest in stock buying selling or trading activities. Trading or buying or selling securities is a market risk-based activity. 

This information or hierarchy of selected stocks should NOT be taken as recommendation/investment advice/offers/solicitations for the buy or sale of any securities. Investors should do their research, consult with their financial advisors, and consider their risk tolerance, financial ambitions, and investment goals before financial investments.