Best Pharma Stocks in India in October 2024 – 5yr CAGR Basis

India is the world’s largest provider of generic drugs and is well-known for its affordable vaccines and medications. Over time, the Indian pharmaceutical industry has grown significantly, with a compound annual growth rate (CAGR) of 9.43% over the past 9 years. Today, it is ranked third globally in terms of pharmaceutical production by volume. India’s pharmaceutical sector plays a major role globally, supplying more than 50% of the world’s demand for vaccines, 40% of the US’s generic medicine needs, and 25% of the UK’s medicines. In this article, let’s look at some of the best pharma stocks in India for October 2024 based on the 5-year CAGR.

Best Pharma Sector Stock List In India In October 2024 – 5-Year CAGR Basis

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 October 03, 2024. 

Overview of Best Pharma Company Stocks in India in October 2024

• J.B. Chemicals and Pharmaceuticals Limited

J.B. Chemicals and Pharmaceuticals Limited (JBCPL), founded in 1976, is one of India’s top pharmaceutical companies. It is a publicly-listed company that provides affordable, high-quality products in both the Indian and international markets. JBCPL is well-regarded and trusted by healthcare professionals around the world.

For the quarter ended June 2024, the company’s revenue increased to ₹952.31  crore from ₹809.20 crore in the preceding quarter. Meanwhile, the net profit increased to ₹173.23 crore from ₹125.85 crore in the previous quarter. 

Key metrics: 

• Earning per share (EPS): ₹36.85
• Return on equity (ROE): 19.82%
• Laurus Labs

Laurus Labs, established in 2005, is a research-focused pharmaceutical and biotechnology company with a global leadership position in specific Active Pharmaceutical Ingredients (APIs), including those for anti-retroviral, oncology, cardiovascular, and gastrointestinal treatments. The company also provides comprehensive Contract Manufacturing (CMO) and Contract Development and Manufacturing (CDMO) services, supporting global innovators from the clinical drug development phase to commercial manufacturing.

For the quarter ended June 2024, the company’s revenue decreased to ₹1,116.93 crore from ₹1,414.52 crore in the preceding quarter. Meanwhile, the net profit decreased to ₹28.78 crore from ₹121.32 crore in the previous quarter. 

Key metrics: 

• EPS: ₹4.44
• ROE: 5.69%
• Granules India Ltd

Granules India Ltd and its subsidiaries focus on producing and selling Active Pharmaceutical Ingredients (APIs), Pharmaceutical Formulation Intermediates (PFIs), and finished dosage medicines.

For the quarter ended June 2024, the company’s revenue decreased to ₹851.95 crore from ₹940.19 crore in the preceding quarter. Meanwhile, the net profit decreased to ₹93.78 crore from ₹97.22 crore in the previous quarter. 

Key metrics: 

• EPS: ₹18.56
• ROE: 14.46%
• Glenmark Pharmaceuticals Ltd

Glenmark Pharmaceuticals Ltd is a research-driven pharmaceutical company with a global presence. It operates in the generics, speciality, and over-the-counter (OTC) medicine sectors and is active in more than 80 countries.

For the quarter ended June 2024, the company’s revenue increased to ₹2,329.54 crore from ₹2,148.22 crore in the preceding quarter. Meanwhile, the net profit decreased to ₹453.73 crore from ₹4,613.70 crore in the previous quarter. 

Key metrics: 

• EPS: ₹189.57
• ROE: 23.29%
• Caplin Point Laboratories Ltd

Caplin Point Laboratories Ltd is involved in producing and sourcing Active Pharmaceutical Ingredients (APIs), finished medicines, and conducting research and development (R&D) and clinical studies. The company has a presence in Latin America, Africa, the USA, and other countries.

For the quarter ended June 2024, the company’s revenue increased to ₹185.64 crore from ₹139.38 crore in the preceding quarter. Meanwhile, the net profit increased to ₹72.54 crore from ₹69.88 crore in the previous quarter. 

Key metrics: 

• EPS: ₹36.83
• ROE: 20.14%

Pharma Sector Outlook

The pharmaceutical industry is a key part of India’s foreign trade and offers great potential for investors. Millions of people around the world benefit from India’s affordable generic medicines. India operates a large number of manufacturing plants that follow Good Manufacturing Practices (GMP) standards set by the World Health Organization (WHO) and the US Food and Drug Administration (USFDA). India has consistently ranked as one of the top pharmaceutical producers globally.

The Indian government has taken several initiatives to lower healthcare costs. Programs like the National Health Protection Scheme aim to provide universal healthcare, and efforts such as supporting affordable generic medicine outlets and addressing the growing elderly population and the rise in chronic diseases are expected to drive further growth in the pharmaceutical industry.

For Indian pharmaceutical companies, the fast introduction of generic drugs remains a key focus. Additionally, the emphasis on rural health programs, life-saving drugs, and preventive vaccines is expected to benefit the sector.

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.