India is the world’s largest supplier of generic drugs and is known for its affordable vaccines and generic medicines. The Indian pharmaceutical industry is the third-largest global pharmaceutical production by volume. It has grown significantly over time, with an annual growth rate of 9.43% over the past nine years. This article highlights some of the top pharmaceutical stocks in India for December 2024 based on their 5-year CAGR.
India plays a vital role in the global pharmaceutical sector, supplying over 50% of the world’s vaccines, 40% of the generic medicines in the US, and 25% of the medicines in the UK. The domestic pharmaceutical sector includes around 3,000 drug companies and approximately 10,500 manufacturing units. India’s large pool of scientists and engineers is key to advancing the industry further.
Over 80% of the antiretroviral drugs used worldwide to treat AIDS are supplied by Indian companies, earning India the title of “pharmacy of the world” due to its cost-effective, high-quality medicines. The Indian pharmaceutical industry ranks third in global production by volume and 14th by value. It contributes about 1.72% to the country’s GDP.
A recent EY FICCI report suggests that the Indian pharmaceutical market is expected to reach $130 billion by 2030, while the global pharmaceutical market is projected to surpass $1 trillion in 2023.
| Name | Market Cap (₹ in crore) | PE Ratio | 5Y CAGR (%) | 1Y Return (%) |
| J B Chemicals and Pharmaceuticals | 28,148.58 | 50.94 | 54.96 | 22.08 |
| Laurus Labs | 31,457.25 | 195.93 | 54.03 | 53.12 |
| Caplin Point Laboratories Ltd | 17,957.76 | 39.29 | 49.48 | 83.81 |
| Glenmark Pharmaceuticals | 43,701.07 | -29.10 | 36.63 | 101.02 |
| Ajanta Pharma | 37,347.47 | 45.76 | 35.53 | 51.46 |
| Granules India | 13,161.83 | 32.47 | 33.68 | 36.44 |
| Sun Pharmaceutical Industries | 4,31,928.28 | 45.1 | 32.33 | 46.21 |
| Zydus Lifesciences | 97,639.92 | 25.3 | 30.1 | 53.86 |
| Torrent Pharmaceuticals | 1,13,468.91 | 68.5 | 29.12 | 56.5 |
| Eris Lifesciences | 20,025.25 | 51.09 | 27.05 | 61.63 |
Note: The list of top pharma stocks in India listed in stock market here are selected from the Nifty 500 universe and sorted as per the 5-yr CAGR as of December 05, 2024.
J.B. Chemicals and Pharmaceuticals Limited (JBCPL) is one of India’s leading pharmaceutical companies. It is publicly traded and offers affordable, high-quality products in both domestic and international markets. JBCPL is widely respected and trusted by healthcare professionals globally.
For the quarter ending September 2024, J.B. Chemicals and Pharmaceuticals Limited reported a revenue of ₹955.76 crore, slightly up from ₹952.31 crore in June 2024. The company posted a net profit of ₹173.12 crore for the September 2024 quarter, which is nearly in line with the net profit of ₹173.23 crore in the previous quarter.
Key metrics:
Laurus Labs, founded in 2005, is a research-driven pharmaceutical and biotechnology company that leads globally in certain Active Pharmaceutical Ingredients (APIs), such as those used in treatments for HIV, cancer, heart disease, and digestive issues. The company also offers a range of services, including contract manufacturing (CMO) and contract development and manufacturing (CDMO), assisting global companies in clinical drug development and commercial production.
For the quarter ending September 2024, Laurus Labs reported a revenue of ₹1,184.85 crore, compared to ₹1,116.93 crore in June 2024. The net profit for September 2024 was ₹42.44 crore, up from ₹28.78 crore in the previous quarter.
Key metrics:
Caplin Point Laboratories Ltd produces and sources Active Pharmaceutical Ingredients (APIs) and finished medicines. It also focuses on research, development, and clinical studies. The company operates in Latin America, Africa, the USA, and other regions.
For the quarter ending September 2024, Caplin Point Laboratories Ltd reported a revenue of ₹207.93 crore and a net profit of ₹105.74 crore. This compares to ₹185.64 crore in revenue and ₹72.54 crore in net profit for June 2024.
Key metrics:
Glenmark Pharmaceuticals Ltd is a worldwide research-focused pharmaceutical company. It works in the fields of generics, speciality medicines, and over-the-counter (OTC) products and operates in over 80 countries.
Glenmark Pharmaceuticals Ltd reported a revenue of ₹2,636.10 crore for September 2024, reflecting growth from ₹2,329.54 crore in June 2024. The net profit for the September 2024 quarter was ₹595.06 crore, which marked an increase compared to ₹453.73 crore in June 2024.
Key metrics:
Ajanta Pharma focuses on developing, producing, and selling high-quality speciality pharmaceutical products.
For the quarter ended September 2024, Ajanta Pharma reported a revenue of ₹1,128.91 crore, compared to ₹1,077.27 crore in June 2024. Net profit for the quarter was ₹234.98 crore, slightly lower than the ₹236.03 crore reported in the previous quarter.
Key metrics:
To conclude, the pharmaceutical sector is vital in India’s foreign trade and presents significant investment opportunities. However, there are risks to consider, such as regulatory changes, especially those affecting pricing and exports, which could hurt company revenues. The US market, important for many pharma companies, is subject to regulatory pressure and FDA inspections that might negatively impact stock prices. Additionally, currency fluctuations can be a risk, as the industry is heavily reliant on exports.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
We're Live on WhatsApp! Join our channel for market insights & updates
Get the link to download the App
