In India, the Pharmaceutical industry is one of the best growing sectors in the global market. In this article, we will discuss in detail about the top Pharma companies in Indian stock market
As of now, India is the biggest provider of generic medicines, maintaining a market share of 20% to global supply by volume and satisfies almost 60% of vaccine requirements throughout the world. Indian pharmaceutical companies are providing up to 80% of antiretroviral medicines in the global markets.
The below-mentioned companies are the best pharma stocks in india to purchase at the current situation. Holding their stocks can definitely create better wealth for every investor because they are not only supplying their products in the Indian market but also export to the global market.
Table of Contents
Best Pharma Company Shares in India
Let’s look in detail what are the top Pharma companies in India which are currently ruling the stock market world. Sun Pharmaceutical Industries Ltd, Dr. Reddy’s Laboratories, Cipla Ltd, Aurobindo Pharma Ltd, Lupin Ltd
#1 Sun Pharmaceutical Industries Ltd
Below data as on 26th April 2022
| Founder | Dilip Shanghvi |
| Founded | 1983, Vapi |
| Headquarters | Goregaon, Mumbai |
| Market Capitalization | Rs 219,851 Cr |
| Share Price | 916 INR |
| P/E Ratio | 34.1 |
| ROE | 6.33 % |
| ROCE | 13.9 % |
| Face Value | Rs 1.00 |
Sun Pharmaceutical Industries Ltd is one of the largest multinational pharmaceutical companies listed under indian top 10 pharmaceutical companies. The company was founded by Mr Dilip Shanghvi in 1983. This is one of the trustworthy pharma companies in India as it supplies its products in India as well as in the US. Below picture shows its revenue distribution by its products and demography.
Sun pharma provides medicines in various fields like cardiology, neurology, psychiatry, diabetology and gastroenterology. It also provides APIs such as etodolac, clorazepate, carbamazepine, and warfarin. Sun pharma got entrepreneur of the year award from AIMA in 2017.
#2 Aurobindo Pharma
Below data as on 26th April 2022
| Founder | P. V. Ramprasad Reddy, K. Nityananda Reddy |
| Founded | 1986 |
| Headquarters | Hyderabad |
| Market Capitalization | 37,421 Cr |
| Share Price | 639 INR |
| P/E Ratio | 13.1 |
| ROE | 27.5 % |
| ROCE | 18.5 % |
| Face Value | Rs 1.00 |
Aurobindo Pharma was founded in 1986 by Mr P. V. Ramprasad Reddy, Mr K. Nityananda Reddy. Aurobindo started their services in 1988-89 at Pondicherry on Semi-Synthetic penicillin. In 1992 it became a public company. This company provides medicines for neurosciences, antiretrovirals, cardiovascular, antibiotics, gastroenterology, etc. Aurobindo exports its products to multiple countries across the globe. Their products have high demand in the market because they provide high quality and budget-friendly medicines to all the customers.
#3 Lupin Pharmaceuticals Ltd
Below data as on 26th April 2022
| Founder | Desh Bandhu Gupta |
| Founded | 1968 |
| Headquarters | Mumbai |
| Share Price | 755 INR |
| Market Capitalization | 34,317 Cr |
| PE Ratio | 0 |
| ROE | 8.94 % |
| ROCE | 9.42 % |
| Face Value | Rs 2.00 |
Lupin is a global pharmaceutical company of India that provides multiple products like Drug delivery system, Biotechnology, APIs, etc. It provides medicines for Cardiology, Central Nervous System, Diabetology, Respiratory, Gynecology, Anti-Infective, Gastro-Intestinal, and Oncology. It has multiple branches across India, Japan, Brazil, Mexico, and the US. Lupin has a global leadership position in the Anti-TB and Cephalosporins sector. Their products have high demand in the market because they provide medicines for tenacious diseases and budget-friendly medicines to all the customers.
#4 Dr Reddy’s Laboratories
Below data as on 26th April 2022
| Founder | Kallam Anji Reddy |
| Founded | 1984 |
| Headquarters | Hyderabad |
| Market Capitalization | Rs 69,198 Cr |
| Share Price | 4,158 INR |
| P/E Ratio | 26.2 |
| ROE | 11.7 % |
| ROCE | 15.4 % |
| Face Value | Rs 5.00 |
Dr Reddy’s Laboratories was established in 1984 by Anji Reddy. It is a multinational pharma company of india which produces a variety of pharmaceuticals as well as abroad. It provides 190+ drugs, and 60 Active Pharmaceutical Ingredients for drug production, biotechnology products, critical care, and diagnostic kits.
Dr Reddy’s has seven production plants in India. This firm expanded its services in Russia in 1992.
Dr Reddys has started their final stage clinical trials of Russia covid vaccine in India. Once they complete the clinical trials they will produce 100 million doses when they will get regulatory clearance.
#5 Cipla
Below data as on 26th April 2022
| Founder | Khwaja Abdul Hamed |
| Founded | 1935 |
| Headquarters | Mumbai |
| Market Capitalization | 78,798 Cr |
| Share Price | 977 INR |
| P/E Ratio | 30.7 |
| ROE | 14.1 % |
| ROCE | 17.6% |
| Face Value | Rs 2.00 |
Cipla was established in the year 1935 by Dr K.A. Hamied. It is previously known as Industrial & Pharmaceutical Laboratories. Cipla is one of the best indian pharmaceutical industry which provides good quality generic medicines globally. This company has a notable position in the Indian market. Cipla plays a key role in selling HIV medicines. Cipla provides more than 2000 products in the market.
FAQs
Is it smart to invest in pharmaceutical companies?
Investing in pharma companies can be very helpful for long-term investors. With the opportunity of a secured approach into new medications, the pharmaceutical industry can give you good profits. It would be suggested to invest in pharma only after proper research about the company.
Which is the best pharma stock to buy?
Let’s look at top pharmaceutical stocks that allow investors a substantial investment:
Reddy’s Laboratories Ltd.
Sun Pharmaceutical Industries Ltd.
Cipla
Lupin Pharmaceuticals Ltd
Aurobindo
Is it a great time to invest in pharma funds?
Pharma funds may spend at least 70% of the entire assets in the particularised sector as per the SEBI rules. You can hold pharma funds only if you are an aggressive investor with a high-risk tolerance. As of now the pharma sector can perform well because of the coronavirus pandemic.
How do you buy shares in pharmaceutical companies?
You can invest in pharma companies in following ways
Directly buying the shares from your demat account. For this you have to first open a demat and trading account. Once that is complete you have to add funds in your account and then buy shares directly through your demat account.
Please make sure that you visit company website to know details about the companies products and their shareholders and different upcoming initiatives. For doing fundamental analysis, you can check this article.
Another way is to invest through mutual funds which is based on pharma themes. This is an easier way as the mutual funds are less risky and includes the stocks which are thoroughly analysed by experts. This will reduce your effort to do the fundamental analysis of each stock. Some of the mutual funds on pharma themes are
Tata India Pharma & HealthCare Fund, Nippon India Pharma Fund, Aditya Birla Sun Life Pharma & Healthcare Fund etc.
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