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The apparent spread of many major infections and diseases will have an impact on the global pharmaceutical market with expected growth. Demand for medicines in developing countries is very high compared to the industrial economy. Some of the most obvious trends in the pharmaceutical industry include high budget pressures that are forced to increase the incidence of chronic and communicable diseases. Technological advancement benefits treatments and diagnostic which influence pharmaceutical companies in research and development to support patients with accurate treatments, dosage, convenience, and compliance with the type of medication with an increase in the incidence of chronic diseases. In the next session, we will discuss about top pharma companies in India.
The pharma sector can be attractive for long-term investors despite of the instability. The continuously rising industry size and healthcare becoming an essential part of life, if investors invest at the right time then they can make good handsome returns. Further, being a developing industry, innovation, scientific breakthroughs, and technological developments bring in exponential growth for many Pharma companies.
Apart from that, investors should look at Pharma stocks which are fundamentally strong with flexible balance sheets, good track record. The companies should have visibility in growth and a strong ability to come out stronger from downturns. Factors such as regular high return ratios, minimum debt to equity ratio, profit margins, R&D expenditure, drugs at various stages of approval in the pipeline, patents for drugs, etc. should definitely be considered for investing in a pharma company.
India’s pharmaceutical industry is among the leading global producers of cost-effective generic medicines and vaccines, supplying 20-30 percent of the total global demand by volume and 62 percent of the global demand for vaccines. The Indian Pharmaceutical market (IPM) has staged a strong double-digit growth of 20% YoY for YTD April – November 2021. The Nifty pharma index over April – December 2021 has underperformed the benchmarks reporting 12% return versus 16% returns clocked by the benchmark Nifty index, Also the Pharma index has corrected ~7% from its two-month highs.
It is highly expected to play an important role to balance the global demand for COVID-19 vaccines, especially for developing countries. India’s generic drug producers hold a strong position in the global supply chain and play an important role in developing the pharmaceutical industry. Some of the major domestic players in the pharma industry include Bharat Biotech, Sun Pharmaceutical Industries, Zydus Cadila, Cipla, Lupin, Dr. Reddy’s Laboratories, Aurobindo Pharma, Piramal Enterprises, Glenmark Pharmaceuticals, and Torrent Pharmaceuticals.
Sun Pharma(Sun Pharmaceutical Industries Ltd) is the fourth-largest pharmaceutical company in the world. providing high quality, affordable, and is trusted by patients and healthcare professionals in more than 90 countries around the world. Sun Pharma has grown to become one of the largest generic pharmaceutical companies in India. It is the first among Indian pharmaceutical companies who recognize the importance of investing in research and developments. Sun Pharma is committed to creating long-term value for its shareholders. In line with this philosophy, they will continue to focus on working and producing consistent benefits.
Price (INR): ₹ 845.00, Change: ₹ +10.55, Percentage Change: 1.26%.
Bharat Biotech creates new vaccines and bio-therapeutics trusted by doctors around the world. It has 145 patents and our products help people in over 123 countries live to their fullest potential. Their R&D investments have yielded several breakthroughs including the world’s first:
Price (INR): ₹ 58.45, Change: ₹ +2.75, Percentage Change: 4.94%.
Zydus Cadila, India’s leading pharmaceutical company, is a global healthcare provider that has gained a reputation in Indian pharmaceutical companies for providing complete and comprehensive healthcare solutions. The company’s key parts (US and India) have an improved growth outlook. It is favorably progressing to build an alternative platform (like NCE, biologics, vaccines) and formulations to active pharmaceutical ingredients and animal healthcare products to wellness products. Further, Cadila’s COVID-19 vaccine ZyCov D also offers substantial growth being the only vaccine approved for the adolescent age group. A solid balance sheet with healthy returns rates and growth incentives makes the company strong and potential.
Price (INR): ₹ 483.20, Change: ₹ +3.75, Percentage Change: 0.78%.
Dr Reddy’s Laboratories Ltd is one of the leading pharmaceutical companies present across most markets globally. DRL Launches Sputnik V Vaccine in India in May 2021 but has since struggled to launch the second dose, thus it has missed out on the vaccine market in India. With the recent spike in the COVID-19 cases due to the new variant Omicron, there is the possibility of an improvement in demand for Sputnik V or Sputnik Light. Soon, Dr. Reddy’s obtained another success with Omez(gastrointestinal ulcer), launched at cheap price other brands on the Indian market at that time. Within a year, Reddy’s has become the first Indian company who started exporting pharmaceutical ingredients to the European market.
Price (INR): ₹ 4905.65, Change: ₹ +0.95, Percentage Change: 0.019%.
Aurobindo Pharma Limited is an Indian pharmaceutical manufacturing company headquartered in HITEC City, Hyderabad, India and listed its shares on the Indian stock exchanges in 1995. The company is the leader in Semi-Synthetic Penicillin’s market, it has a presence in key therapeutic segments such as neurosciences (CNS), cardiovascular (CVS), anti-retroviral, anti-diabetics, gastroenterology, and Anti-biotics. Through cost-effective manufacturing capabilities, the company also entered the high-margin specialty generic formulations segment.
Aurobindo is witnessing headwinds for its US business in the form of sustained higher price erosion and built of inventories across channels. Given the attractive valuations and value unlocking opportunities from the demerger of injectables business. Also, the injectables business is growing at a healthy pace and the company has retained its guidance of achieving a $600-650 Million turnovers over the next 3 years. Today Aurobindo Pharma has evolved into a knowledgeable company that produces effective pharmaceutical ingredients and formulation products. It focuses on R&D and has a portfolio of numerous products with production facilities in few countries.
Price (INR): ₹ 732.15, Change: ₹ +8.65, Percentage Change: 1.20%.
Glenmark, a leading integrated research-based company incorporated in 1977, is a Mid Cap company with a market capitalization of Rs 14810.60 Cr. Their generic business has a significant market presence in all emerging economies including India. The generics business services the requirements of developed markets all over the world.
Price (INR): ₹ 527.30, Change: ₹ +2.45, Percentage Change: 0.47%.
Torrent pharma Group is one of the leading pharma companies in the Country. The company has started initiating the niche marketing concept in India and today is a leader in the field of women’s health care (WHC), gastrointestinal, cardiovascular medicine (CV), central nervous system (CNS). The company also focuses to be specialized on diabetes treatment, pain management, oncology, gynecology, and anti-bacterial components and also initiated world-class production facilities, advanced R&D skills, and a global presence. It also focuses on acute therapy products with the aim of increasing its product portfolio and gaining market share.
Price (INR): ₹ 552.50, Change: ₹ +3.45, Percentage Change: 0.63%.
Piramal Group is a global business multinational with diverse interests in Pharma, Real Estate and Financial Services. The Group has offices in over 30 countries and a global brand presence in more than 100 markets. In the three decades of its existence, Piramal Group has pursued a twin strategy of both organic and inorganic growth.
Price (INR): ₹ 2638.00, Change: ₹ +21.30, Percentage Change: 0.81%.
Divi’s Lab is recognized as generic APIs and trustworthy customer manufacturer to big pharma and it is one of the top API manufacturers in the world. Further tie up for Molnupiravir is also expected to open up a sizeable growth opportunity for Divis Lab. Given its established capabilities, backward integration benefits, focus on quality, and benefits of scale coupled with major capacity expansion plans going on stream, the company is best placed to cater to increasing demand from global big pharma companies.
Price (INR): ₹ 4677.00, Change: ₹ +49.10, Percentage Change: 1.06%.
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Disclaimer
All the information are used for education purpose only. All the information are taken from internet and market sources. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution. InvestoAxis is not liable or responsible for any losses caused as a result of decisions based on the article.
