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Top Pharma Stocks and their Future in India 2022

08 June 2022

India is one of the world's leading suppliers of generic medicines, thanks to the cost advantage provided by the world's third-largest economy in terms of Purchasing Power Parity.

Furthermore, India has a pool of scientists who have the potential to propel the industry to new heights.

We believe that Stocks that generate returns and are popular among investors are driven not only by fundamentals (strong financial positions and management) but also by macroeconomic factors. These stocks are suitable for both the bottom-up and top-down approaches to investing. To arrive at such solid picks, various parameters (revenues, cash flows, net profits, etc.) must be evaluated.

Best Pharma Stocks India

We have put together a list of the Top Pharma Stocks in India in 2022-

S.No.

Top Stocks

1.

Sun Pharmaceutical Industries

2.

Divi’s Laboratories

3.

Cipla

4.

Dr. Reddy’s Laboratories

5.

Apollo Hospitals Enterprise

Factors to Consider Before Investing in Pharma Stocks

  • Rising Penetration of Medical Infrastructure

India is a country that is known for having the lowest doctor density. Doctor density is the number of doctors per thousand people. Having said that, the number is improving at a swift pace supported by the rising number of medical colleges. With the rising penetration of doctors, medical colleges, and hospitals in India, the growth of the pharmaceutical sector could not be neglected.

  • Increasing Cases of Chronic Ailment

Changing lifestyle in India due to factors such as rising urbanization, unhealthy dietary habits, environmental degradation, sedentary lifestyle, and many more have resulted in increasing chronic cases. These factors are likely to push the growth of the chronic therapeutic segment. The segment also provides higher profitability for pharmaceutical companies.

  • Strong Off-Patent Pipeline

The growth of the export market for Indian companies will see an amplified growth over time when the patent expires for some of the blockbuster drugs. Indian companies export to over 200 countries that fall in the regulated and semi-regulated market thereby providing Indian companies a wide gamut for growth.

Performance Of the Best Pharma Stocks of 2022

  1. Sun Pharmaceutical Industries

Sun Pharmaceutical Industries Limited is a specialty generic pharmaceutical company and is one of the Best Pharma Stocks to Buy in India 2022. The company is engaged in the business of manufacturing, developing, and marketing a range of generic formulations. It produces a portfolio of generic and specialty medicines targeting a spectrum of chronic and acute treatments.

  1. Divi’s Laboratories

Divi’s Laboratories Limited is an India-based company, which is engaged in the manufacturing and selling of active pharmaceutical ingredients (APIs), intermediates, and nutraceutical ingredients with a predominance in exports. If you cannot decide upon which Pharma Stock to Buy, you can easily go for this stock by conducting your own in-depth research about the same.

  1. Cipla

Cipla Limited is an India-based company that is primarily engaged in the business of pharmaceuticals and is one of the Best Pharma Stocks to Buy in India for Long Term. The Company's segments include Pharmaceuticals and New ventures. The pharmaceuticals segment is engaged in developing, manufacturing, selling, and distributing generic or branded generic medicines, as well as Active Pharmaceutical Ingredients (API).

The New ventures segment includes the operations of the Company, a consumer healthcare, Biosimilars, and specialty business.

  1. Dr. Reddy’s Laboratories

Dr. Reddy's Laboratories Limited is an India-based pharmaceutical company. The Company's segments include Global Generics, Pharmaceutical Services and Active Ingredients (PSA1), Proprietary Products, and Aurigene Discovery Technologies Limited.

  1. Apollo Hospitals Enterprise

Apollo Hospitals Enterprise Limited is an India-based company, which is engaged in providing comprehensive hospital services. The Company provides and sells pharma and wellness products through a network of pharmacies.

The principal activities of the Company include the operation of multidisciplinary private hospitals, clinics, and pharmacies. The Company operates through two segments: Healthcare and Retail Pharmacy.

Conclusion

This was the list of the best pharma Stocks to Buy in India 2022. If you have never invested in the Pharmaceutical Stock Market before then as a new player it might be intimidating for you. Pharmaceutical Stocks, unlike savings accounts, money market funds, and certificates of deposit, have a fluctuating principal value. Keep your eyes open and analyze the market as well as the Best Stocks in the industry and conduct your own research before making any decision.

 Happy Investing!

Disclaimer: The views expressed in this post are that of the author and not those of Groww.

To read the RA disclaimer, please click here

Research Analyst - Bavadharini KS 

Disclaimer

The stocks mentioned in this article are not recommendations. Please conduct your own research and due diligence before investing. Investment in securities market are subject to market risks, read all the related documents carefully before investing. Please read the Risk Disclosure documents carefully before investing in Equity Shares, Derivatives, Mutual fund, and/or other instruments traded on the Stock Exchanges. As investments are subject to market risks and price fluctuation risk, there is no assurance or guarantee that the investment objectives shall be achieved. NBT do not guarantee any assured returns on any investments. Past performance of securities/instruments is not indicative of their future performance.
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