Best Pharma Stocks in September 2024 – 5yr CAGR Basis

The pharma industry takes advantage of the consistent demand for healthcare and medications. Key growth drivers are advancements in healthcare technology, innovations in drug development, and an ageing population increasing the need for healthcare services and medications.

According to the India Brand Equity Foundation (IBEF), the Indian Pharmaceutical Industry is expected to reach USD 130 billion by 2030 and USD 450 billion by 2047. This sector includes around 3,000 drug companies and ~10,500 manufacturing units.

In this article, check the best pharma stocks in India in September 2024 listed based on the 5-yr CAGR and understand the growth of the pharma sector.

Best Pharma Stocks in September 2024 – 5yr CAGR Basis

Note: The best pharma stocks list provided here is as of September 4, 2024. The stocks are picked from the Nifty 500 universe and sorted based on the 5-yr CAGR.

Overview of the Best Pharmaceuticals Stocks

1. J B Chemicals and Pharmaceuticals Ltd

J B. Chemicals & Pharmaceuticals Limited is involved in the manufacturing and marketing of a range of pharmaceutical formulations, herbal remedies, and active pharmaceutical ingredients (APIs). For FY 2024, the company recorded revenue of ₹3,484 crore, up from ₹3,149 crore in FY 2023, registering a growth of 11%. In Profit after Tax (PAT), they reported a growth of 35% to ₹553 crore, up from ₹410 crore in FY 2023.

Key Metrics:

• ROE: 20.45%
• ROCE: 25.51%

2. Granules India Ltd

Granules India Limited is a pharmaceutical company that is engaged in the manufacturing of finished dosages (FDs), pharmaceutical formulation intermediates (PFIs), and APIs. In FY 2024, the revenue from operations stood at ₹45,063.67 million, while it was ₹45,119 million in FY 2023. In FY 2024, the PAT was ₹4,053.10 million, compared to ₹5,165.97 million in FY 2023.

Key Metrics:

• ROE: 13.38%
• ROCE: 19.12%

3. Laurus Labs Ltd

Laurus Labs Ltd is a research and development pharmaceutical company that manufactures APIs and Intermediates. The company also manufactures APIs in oncology and other therapeutic areas. In FY 2024, the company’s total income decreased to ₹5,067.17 crore, from ₹6,046.55 core in FY 2023. In FY 2024, the net profit was ₹168.21 crore, compared to ₹796.64 crore in FY 2023.

Key Metrics:

• ROE: 3.93%
• ROCE: 7.95%

4. Zydus Lifesciences Ltd

Zydus Lifesciences Ltd is an innovative global life sciences company engaged in the discovery, development, manufacturing, and marketing of a diverse array of healthcare therapies. In FY 2024, the company’s total income was ₹1,98,315 million, up from ₹1,74,240 million in FY 2023. In FY 2024, the net profit was ₹38,595 million, up from ₹19,603 million in FY 2023.

Key Metrics:

• ROE: 18.47%
• ROCE: 20.91%

5. Ajanta Pharma Ltd

Ajanta Pharma is a speciality pharmaceutical company that provides quality medicines across more than 30 countries globally. In FY 2024, the company’s revenue from operations was ₹4,209 crore, up from ₹3,743 crore in FY 2023. In FY 2024, the net profit was ₹816 crore, up from ₹588 crore in FY 2023.

Key Metrics:

• ROE: 23.47%
• ROCE: 30.85%

Pharma Industry in India

India has emerged as a global medical tourism hub, offering cost-effective treatments with advanced technology, supported by numerous groundbreaking reforms and policies. From FY18 to FY23, the Indian pharmaceutical industry experienced a CAGR of 6-8%, driven mainly by an 8% increase in exports and a 6% rise in the domestic market.

The Indian pharmaceutical industry is projected to grow to ~USD 130 billion by 2030 and reach USD 450 billion by 2047. As of May 2024, the Indian pharmaceutical industry is valued at around USD 50 billion. The industry benefits significantly from exports, which contribute over USD 25 billion. India accounts for about 20% of global generic drug exports.

Conclusion

Apart from these, there are several other pharma company stocks in the stock market. Before investing in Indian pharmaceutical stocks, conduct comprehensive research on the company. Assess your investment goals and risk tolerance carefully, and seek advice from a financial advisor.

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.