Best Pharma Stocks in India in April 2025 – Based on 5 Year CAGR

India is the largest global provider of generic drugs, renowned for affordable vaccines and medications. The Indian pharmaceutical industry ranks third in production volume, growing at a 9.43% CAGR over the past nine years. It leads in USFDA-compliant facilities and supplies 50% of global vaccines, 40% of U.S. generics, and 25% of U.K. medicines.

The Indan pharmaceutical sector includes 3,000 companies and 10,500 manufacturing units, contributing 1.72% to India’s GDP. India also supplies over 80% of the world’s antiretroviral drugs for AIDS. Known as the “pharmacy of the world,” it ranks third globally in volume and 14th in value. The Indian pharmaceutical market is expected to reach US$ 130 billion by 2030, with the global pharmaceutical market exceeding US$ 1 trillion in 2023.

Let’s explore the top pharma stocks in India for April 2025, ranked by their 5-year CAGR performance, 1-year return, and market capitalisation.

Top Pharma Stocks in India in April 2025 – 5yr CAGR Basis

Note: The best pharma stocks list here is as of April 02, 2025. The stocks are sorted based on the 5Y CAGR.

Overview of Best Pharma Stocks in India

1. Sun Pharmaceutical Industries Ltd. 

Sun Pharma is the world’s fourth-largest specialty generic pharmaceutical company, generating global revenues of US$ 5.8 billion. With 41 manufacturing facilities, the company delivers high-quality, affordable medications that are trusted by healthcare providers and patients in over 100 countries worldwide.

In Q3 FY 2024-25, the company achieved a revenue of ₹6,191.81 crore, showing a strong growth compared to ₹5,127.71 crore in Q2 of the same financial year. The company’s net profit also saw substantial improvement, reaching ₹1,181.05 crore in Q3 FY 2024-25, up from ₹863.29 crore in Q2 FY 2024-25.

Key metrics:

• Earning per Share (EPS): ₹13.13
• Return On Equity (ROE): 13.35%

2. Cipla Ltd

Cipla was founded in 1935 as Chemical Industrial & Pharmaceutical Laboratories Ltd. It adopted its current name in 1984. The company offers a diverse portfolio with over 1,500 products in the market. Cipla operates through three main divisions: APIs, respiratory, and Cipla Global Access. India is its largest market, followed by Africa and North America. In FY24, the company’s total revenue reached ₹25,455 crore (US$ 3.06 billion).

For the period ending December 2024, Cipla reported a revenue of ₹4,970.88 crore, up from ₹4,775.03 crore in September 2024. For the full financial year 2023-24, the company recorded a total revenue of ₹16,574.34 crore. Its net profit for December 2024 was ₹1,438.15 crore, an increase from ₹1,178.16 crore in September 2024. For FY 2023-24, Cipla’s net profit reached ₹4,077.25 crore.

Key metrics:

• Earning per Share (EPS): ₹58.33
• Return On Equity (ROE): 16.17%

3. Torrent Pharmaceuticals Ltd

Torrent Pharma is a leading Indian pharmaceutical company. Known for pioneering niche marketing in India, it has expanded through key acquisitions, including Elder Pharma, Zyg Pharma, and Unichem. The company also made international moves, entering the German market in 2005 and acquiring U.S. assets in 2015. It specialises in making products for women’s health and cardiovascular medicines, among others.

In Q3 FY 2024-25, Torrent Pharma reported a revenue of ₹2,810 crore, reflecting a 2.82% year-on-year growth. The company’s net income increased by 13.54%, reaching ₹503 crore. Diluted earnings per share (EPS) stood at ₹14.88, up by 13.59%. The net profit margin improved to 17.91%, a rise of 10.42%, while operating income grew by 8.99% to ₹715 crore.

Key metrics:

• Earning per Share (EPS): ₹53.89
• Return On Equity (ROE): 24.24%

4. Dr. Reddy’s Laboratories Ltd

Founded in 1984 and headquartered in Hyderabad, India, Dr. Reddy’s is a global pharmaceutical company focused on providing affordable and innovative medicines. With a diverse portfolio including APIs, generics, biosimilars, and OTC products, it operates in key markets like the USA, India, and Europe, while also prioritizing sustainability and ESG initiatives.

For the period ending December 2024, Dr. Reddy’s reported a revenue of ₹5,015 crore, down from ₹6,696.30 crore in September 2024. The total revenue for FY 2023-24 was ₹19,483.80 crore. The company’s net profit for December 2024 was ₹849.40 crore, a decline from ₹1,882.10 crore in September 2024, while the net profit for FY 2023-24 reached ₹4,342 crore.

Key metrics:

• Earning per Share (EPS): ₹62.12
• Return On Equity (ROE): 19.26%

5. Lupin Ltd

Lupin is a globally recognized pharmaceutical company headquartered in Mumbai, focused on innovation. The company develops and markets a broad range of branded and generic medicines, biotechnology products, and active pharmaceutical ingredients (APIs) across more than 100 markets, including the U.S., India, South Africa, APAC, LATAM, Europe, and the Middle East.

For the period ending December 2024, Lupin reported a revenue of ₹4,208 crore, slightly up from ₹4,106.20 crore in September 2024. The total revenue for FY 2023-24 was ₹14,666.50 crore. The company’s net profit for December 2024 was ₹984.67 crore, an increase from ₹807.76 crore in September 2024, while the net profit for FY 2023-24 was ₹2,326.09 crore.

Key metrics:

• Earning per Share (EPS): ₹67.20
• Return On Equity (ROE): 13.95%

Top Pharma Stocks in India in April 2025 – 1 year Return Basis

Note: The best pharma stocks list here is as of April 02, 2025. The stocks are sorted based on the basis of 1 year return.

Top Pharma Stocks in India in April 2025 – Market Cap Basis

Note: The best pharma stocks list here is as of April 02, 2025. The stocks are sorted based on market capitalisation.

Key Factors to Consider Before Investing in Pharma Stocks in India

1. Business Model: Understand whether the company sells finished drugs or APIs, its market focus (regulated or low-regulation), and its R&D spending compared to peers. Check for dependence on a few products for sales or profitability.
2. Therapeutic Focus: Companies with a diverse therapeutic focus, especially in high-growth areas like dermatology, oncology, ophthalmology, and respiratory, offer better growth and margin prospects.
3. Research Focus: Increasing R&D spending drives future growth. Look for promising research pipelines, advanced-stage products, and licensing opportunities.
4. US Generic Filings: A strong pipeline for US market filings, especially with exclusivity periods, boosts revenue. Delays or litigation pose risks.
5. US FDA Inspections: Regular plant inspections with favorable outcomes signal strong compliance, while adverse observations can result in penalties or halted sales.

Conclusion

Although pharma stocks present attractive investment prospects, it’s crucial to align them with your financial objectives, risk appetite, and investment timeline. Consulting a financial advisor can provide personalised guidance to ensure your investments meet your unique requirements.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks. Read all the related documents carefully before investing.