Best Pharma Stocks in India 2022

India is the world’s largest provider of generic medicines by volume, with a 20% share of total global pharmaceutical exports. The pharma industry as a whole is the world’s 3rd largest by volume and 14th largest in terms of value.

Its total cumulative revenue was 2,89,998 crore for the year 2019-2020. India has more than 3000 pharma companies and a significant amount of the drugs manufactured are exported to the United States. In fact, the USA is the biggest market for the pharma sector in India.

Let us see some of the top pharma companies that are listed on the Indian share market

Sl NoStock NameMarket Capital
1 IOL Chemicals & Pharmaceuticals Ltd₹ 1,993.35 Cr.
2Zydus Lifesciences₹ 37,975.73 Cr.
3Aurobindo Pharma₹ 32,153.38 Cr.
4Biocon Ltd₹ 39,907.94 Cr.
5Cipla₹ 77,959.51 Cr.
6 Divi’s Laboratories₹ 98,960.05 Cr.
7Dr Reddy’s Laboratories₹ 75,664.09 Cr.
8Abbott India Ltd₹ 41,960.89 Cr.
9Sun Pharmaceutical Industries Ltd₹ 2,10,757.58 Cr.
10Lupin Ltd₹ 61,412.74 Cr.

1. IOL Chemicals & Pharmaceuticals Ltd

IOL Chemicals & Pharmaceuticals Ltd logo
Image Source: Linkedin

Founded in 1986, IOL Chemicals & Pharmaceuticals Ltd is one of the largest API/ bulk drug companies in India. They are well renowned in the fields like pain management, anticonvulsants, anti-diabetes, anti-cholesterol and anti-platelets.

Their major revenue apart from domestic revenue is exported to the United States of America. It also has the world’s second-largest Ibuprofen manufacturing facility

The shares are currently trading at ₹314

Market Cap₹ 1,993.35 Cr.
P/E12.03
P/B1.43
Sales Growth3.83%

2. Zydus Lifesciences

Zydus Lifesciences logo
Image Source: Wikipedia

Zydus Lifesciences is a leading player in the pharma industry in India, It was Formerly known as Cadila Healthcare. Zydus Life’s research & development investment in biologics, vaccines and new chemical entities may add to the growth trajectory of the company.

The financials and fundamentals of the company have been strengthened.

The shares are currently trading at ₹335

Market Cap₹ 37,975.73 Cr.
P/E44.27
P/B2.87
Sales Growth13.73%

3. Aurobindo Pharma

Aurobindo Pharma logo
Image Source: Telangana Today

Aurobindo Pharma is a leading pharma company making exports to countries like the United States of America and the United Kingdom. It was founded in 1986 in Hyderabad.

The company manufactures generic pharmaceuticals and active pharmaceutical ingredients. It generates annual revenue of about 23,290 crores.

The stock is currently trading at ₹517

Market Cap₹ 32,153.38 Cr.
P/E22.1
P/B1.88
Sales Growth18.35%

4. Biocon Ltd

Biocon Ltd
Image Source: Biocon

Biocon Ltd is a biosimilar company, It was founded in the year 1978. They have an ample amount of experience in the biopharmaceutical field. It was founded by Kiran Mazumdar-Shaw in 1978. The company develops affordable biosimilars, generic formulations & complex APIs.

It is currently trading at around ₹314

Market Cap₹ 39,907.94 Cr.
P/E463.53
P/B4.99
Sales Growth-7.13%

5. Cipla

cipla logo
Image Source: Facebook

Cipla Limited is an Indian multinational pharmaceutical company founded in 1935, Mumbai that is well known in the country for its chronic segment, as well as market leadership in certain chronic therapies like respiratory and inhalation.

Pharma majors do not have a large US portfolio but with an increase in respiratory exposure, Cipla will be able to build a huge business empire in the US.

It is currently trading at ₹918

Market Cap₹ 77,959.51 Cr.
P/E28.99
P/B3.46
Sales Growth9.81%

6. Divi’s Laboratories

Divi’s Laboratories logo
Image Source: India Pharma Post

Divi’s Laboratories Limited is an Indian multinational Pharmaceutical company incorporated in the year 1990. It supplies its products to over 95 countries around the globe.

Divi’s is recognized as a ‘Reliable Supplier of generic APIs (Active pharmaceuticals ingredients)’ and a trustworthy ‘Custom Manufacturer’ to Big Pharma. Divi’s is the leading producer of APIs(Active pharmaceutical ingredients).

The stock is currently trading at a price of ₹3476.

Market Cap₹ 98,960.05 Cr.
P/E33.56
P/B8.46
Sales Growth28.02%

7. Dr Reddy’s Laboratories

Dr Reddy’s Laboratories
Image Source: CSRBox

Dr Reddy’s Laboratories is an Indian pharma company formed in 1984 by Mr Kallam Anji Reddy in Hyderabad. The company manufactures over 190 medications and 60 active pharmaceutical ingredients (APIs) for drug manufacture. Reddy’s is linked to UK pharmaceuticals multinational GlaxoSmithKline.

Dr Reddy’s obtained another success with Omez, its branded omeprazole – gastrointestinal ulcer and reflux oesophagitis medication

It is currently trading at around ₹4156 per share.

Market Cap₹ 75,664.09 Cr.
P/E46.61
P/B4.16
Sales Growth12.65%

8. Abbott India Ltd

Abbott India Ltd logo
Image Source: Drugwatch

A subsidiary of the US company Abbot laboratories, Abbott India was formed in the year 1944 and is a leading company in the pharma industry. They are concerned in the business of women’s health, gastroenterology, cardiology, metabolic disorders and primary care.

The company provides healthcare through a mix of global and local products for people in India.

It is currently trading at ₹17,915.

Market Cap₹ 41,960.89 Cr.
P/E52.54
P/B14.88
Sales Growth5.30%

9. Sun Pharmaceutical Industries Ltd

Sun Pharmaceutical Industries Ltd logo
Image Source: Wikipedia

Sun Pharmaceutical Industries Limited is an Indian multinational pharmaceutical company founded in the year 1983 in Vapi, India.

It is the largest pharma company and is actively traded in the share market and is an integral part of most pharma based mutual funds. They are ranked in the top 10 generic pharmaceutical companies in the US.

It is currently trading at ₹791.

Market Cap₹ 2,10,757.58 Cr.
P/E0
P/B8.57
Sales Growth2.16%

10. Lupin Ltd

lipin ltd logo
Image Source: Wikipedia

Lupin Ltd is an Indian based pharma company incorporated in the year 1968. They focus on areas like paediatrics, cardiovascular, anti-infectives, diabetology, asthma and anti-tuberculosis and have a worldwide accord for their endeavours.

The shares are currently trading at ₹598.

Market Cap₹ 29,134.54 Cr.
P/E0
P/B1.62
Sales Growth0.27%
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Ajay Krishnann

I'm Ajay Krishnan hailing from Chennai. My journey with the stock market began a few years ago when I turned 18. Ever since I've been interested in the fundamental side of researching equity stocks. Being a CA student my area of interest post qualification would be in and around the stock market. Currently I've completed my CA inter and pursuing my articleship under an auditor. I am also studying for my CPA (USA)

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