Top 10 Indian Pharma Stocks for 2024
In 2024, investors should think about adding tiny stocks from the Indian pharmacy industry to their portfolios because they are very likely to do well. These businesses have shown they can be resilient, come up with new ideas, and grow, which makes them great financial options. Check out these 10 Indian pharmaceutical cheap stocks:
Here is a table that shows the 1-year, 3-year, and 5-year results for the top 10 pharma penny stocks in India:
| Company Name | Market Cap (in Rs. Crores) | Stock Price (as of May 2024) | 1 Year Return (%) | 3 Year Return (%) | 5 Year Return (%) |
| Strides Pharma Science Ltd. | 5,800 | ₹320 | 18.2% | 65.7% | 120.4% |
| Natco Pharma Ltd. | 10,000 | ₹620 | 12.8% | 48.9% | 102.1% |
| Laurus Labs Ltd. | 9,000 | ₹480 | 22.4% | 78.3% | 142.6% |
| Granules India Ltd. | 6,500 | ₹350 | 15.6% | 62.1% | 108.7% |
| Ipca Laboratories Ltd. | 11,000 | ₹680 | 10.3% | 35.2% | 72.8% |
| Alembic Pharmaceuticals Ltd. | 8,500 | ₹550 | 14.7% | 49.8% | 95.6% |
| Ajanta Pharma Ltd. | 7,200 | ₹1,100 | 19.6% | 72.4% | 135.9% |
| Sequent Scientific Ltd. | 3,800 | ₹210 | 8.9% | 32.7% | 68.4% |
| Lincoln Pharmaceuticals Ltd. | 2,500 | ₹280 | 16.8% | 58.6% | 96.2% |
| Caplin Point Laboratories Ltd. | 2,200 | ₹490 | 21.1% | 69.3 | 127.5 |
Overview of Best Pharma Stocks To Buy Now
Strides Pharma Science Ltd
Strides Pharma Science Ltd is a pharmaceutical business that functions across all levels of the supply chain. It has a strong foothold in controlled markets such as the US, Europe, and Australia. The company has a diverse product range covering generic and named versions and active pharmaceutical ingredients (APIs). Strides Pharma's focus on narrow treatment areas, such as cancer and immunology, and its cost-effective production skills make it an appealing business option. With a proven track record of providing steady growth and a substantial supply of new goods, Strides Pharma is well-positioned to capitalize on the growing demand for cheap healthcare options.
Natco Pharma Ltd
Natco Pharma is a primary pharmaceutical business known for its skill in creating and manufacturing generic drugs, including complicated and niche goods. The company has a strong foothold in the local and foreign markets, focusing on cancer, hepatitis C, and cardiovascular areas. Natco Pharma's vital research and development skills and ongoing efforts to expand its product line and move into biosimilars and new drug delivery systems make it an appealing business choice. The company's intelligent relationships with global pharmaceutical giants further improve its standing in the market.
Laurus Labs Ltd
Laurus Labs is a significant contract research and manufacturing services (CRAMS) company offering services to global pharmaceutical businesses. The company's skill lies in creating and producing active pharmaceutical ingredients (APIs), advanced intermediates, and finished dose formulas. Laurus Labs' solid customer base, which includes several global companies, its cost-efficient operations, and its focus on sustainable growth through ongoing innovation make it an appealing investment possibility. The company's dedication to quality and legal compliance further adds to its attraction.
Granules India Ltd
Granules India is a vertically integrated pharmaceutical business that creates, makes, and sells pharmaceutical products and active pharmaceutical ingredients (APIs). The company has a strong foothold in controlled markets, including the United States and Europe, and is known for its skill in creating complicated generics and niche goods. Granules India's focus on managerial efficiency, its state-of-the-art production facilities, and its commitment to quality and legal compliance make it an appealing business choice. The company's diverse product range and intelligent partnerships with global pharmaceutical companies place it well for continued growth.
Ipca Laboratories Ltd
Ipca Laboratories is a primary pharmaceutical business with a strong position in the local and foreign markets. The company has a broad product range covering different treatment areas, including antimalarials, anti-infectives, and cardiovascular drugs. Ipca Laboratories' focus on research and development, its cost-effective production skills and a substantial supply of new goods make it an appealing business option. The company's attention to quality and compliance with global legal standards further improves its draw to investors.
Alembic Pharmaceuticals Ltd
Alembic Pharmaceuticals is a vertically integrated pharmaceutical business with a strong foothold in the local and foreign markets. The company has a broad product range, including named generics, active pharmaceutical ingredients (APIs), and contract production services. Alembic Pharmaceuticals' attention to business efficiency, quality, and compliance with strict regulatory standards make it an appealing financial choice. The company's vital research and development skills, strategic relationships, and global reach will help it achieve future growth.
Ajanta Pharma Ltd
Ajanta Pharma is a primary pharmaceutical business focusing on branded generics and unique goods. The company has a strong position in the local and foreign markets, with a particular emphasis on developing countries. Ajanta Pharma's drive for innovation, cost-effective manufacturing, and substantial brand value makes it an appealing business prospect. The company's diverse product range, covering various treatment areas, and its vital supply of new goods further improve its draw to investors.
Sequent Scientific Ltd
Sequent Scientific is a diverse pharmaceutical business focusing on animal health goods and active pharmaceutical ingredients (APIs). The company has a strong foothold in both local and foreign markets, with a particular emphasis on developing countries. Sequent Scientific's diverse collection, which includes animal goods, human medicines, and APIs, provides a hedge against market changes and offers growth possibilities across multiple areas. The company's focus on narrow sectors and its drive to quality and legal compliance make it an exciting business choice.
Lincoln Pharmaceuticals Ltd
Lincoln Pharmaceuticals is a top pharmaceutical business focusing on researching, making, and selling cheap generic formulas. The company has a strong foothold in the local market and is busy seeking foreign possibilities. Lincoln Pharmaceuticals' focus on cost-effective manufacturing and its commitment to quality and compliance with governmental standards make it an appealing business choice. The company's diverse product range and intelligent partnerships with global pharmaceutical companies place it well for future growth.
Caplin Point Laboratories Ltd
Caplin Point Laboratories is a vertically integrated pharmaceutical business that creates and manufactures niche and complex generics. The company has a strong foothold in controlled markets, including the United States and Europe, and is known for its skill in creating new drug delivery methods. Caplin Point Laboratories' focus on innovation, state-of-the-art production facilities, and ability to handle complicated legal settings make it an appealing business prospect. The company's intelligent relationships with global pharmaceutical giants and its vital supply of new goods further improve its draw to investors.
Benefits of Investing in Pharma Stocks
Investing in pharmaceutical stocks offers several possible benefits to investors:
1. Defensive Nature: The pharmacy business is considered relatively defensive, as the demand for healthcare goods and services stays relatively steady, even during economic downturns. This protective nature provides security and robustness to investors' portfolios, making pharmaceutical stocks an attractive investment choice during market instability.
2. Growth Potential: The pharmaceutical business is pushed by ongoing research and development, leading to new and novel goods being launched. This constant innovation, an older global population, and rising healthcare knowledge offer ample growth possibilities for pharmaceutical businesses. Investors can benefit from the industry's steady growth possibilities.
3. Dividend Income: Many established pharmaceutical businesses have a track record of giving stable dividends, giving owners a steady income. This income can be handsome for buyers wanting regular cash flows and long-term wealth building.
4. Diversification: Investing in pharmaceutical stocks can help broaden a financial strategy, lowering total risk exposure. The pharmaceutical business often shows different market trends compared to other sectors, and including pharmaceutical stocks in a portfolio can provide valuable diversification benefits.
5. Intellectual Property Rights: Pharmaceutical businesses depend heavily on intellectual property rights, such as patents, to protect their advances. Substantial patent collections can provide a competitive edge and prolonged success, making possible investor profits.
6. Mergers and Acquisitions: The pharmaceutical industry is known for its busy mergers and acquisitions (M&A), as companies seek to grow their product lines, reach new markets, and improve their research skills. Successful M&A deals can create significant shareholder value, presenting possible chances for investors.
Factors To Consider Before Investing in Pharma Stocks
While the pharmaceutical business offers good financial chances, it is essential to consider several factors before buying pharma stocks:
1. Regulatory Environment: The pharmaceutical business is highly controlled, and law changes can greatly impact a company's operations and profits. Investors should closely watch governmental changes and examine their possible effect on the companies they are considering buying.
2. Research and Development Pipeline: An intense research and development pipeline is essential for pharmaceutical businesses to keep a competitive edge and drive future growth. Investors should assess the power and variety of a company's pipeline and its ability to manage the drug development process successfully.
3. Competition: The pharmacy business is highly competitive, with numerous players fighting for market share. Investors should examine a company's competitive benefits, such as its product range, price strategy, and market placement, to gauge its ability to succeed in a highly competitive environment.
4. Pricing and Reimbursem*nt Policies: Pricing and reimbursem*nt policies can significantly affect a pharmaceutical company's income and profits. Investors should carefully examine the effect of price laws and payment policies in the areas where the company works.
5. Manufacturing Capabilities: Efficient and cost-effective manufacturing facilities are essential for pharmaceutical businesses to keep quality and profitability. Investors should assess a company's manufacturing skills, including its ability to meet legal standards and reduce output costs.
6. Intellectual Property Protection: Protecting intellectual property is vital for pharmaceutical businesses to protect their advances and keep a competitive edge. Investors should examine a company's intellectual property plan and its ability to protect its rights and unique technologies.
Why Should You Invest in Pharma Stocks in India?
The Indian pharmaceutical business offers an enticing financial chance for several reasons:
1. Robust Growth Potential: The Indian pharmacy market is one of the fastest-growing in the world, driven by more excellent healthcare knowledge, rising spending salaries, and an ageing population. This growth trend offers significant chances for local pharmaceutical businesses to expand their operations and grab a more significant part of the market.
2. Cost Advantage: Indian pharmaceutical businesses gain from lower production and running costs, giving them a competitive edge in global markets. This cost edge allows them to offer cheap and high-quality goods, making them appealing to customers and healthcare workers worldwide.
3. Regulatory Environment: The Indian government has adopted supporting policies and laws to encourage the growth of the pharmaceutical business, creating an attractive investment environment. Initiatives such as the Pharmaceuticals Purchase Policy and the Production Linked Incentive (PLI) plan have improved the industry's competitiveness.
4. Skilled workers: India boasts a large pool of skilled and cost-effective workers, giving a significant edge to pharmaceutical companies working in the country. This skilled labour adds to the industry's ability to perform high-quality research and development and efficient production processes.
5. Export possibilities: With their cost benefits and growing compliance with international standards, Indian pharmaceutical businesses can capitalize on global export possibilities. The industry's good export success has been a critical cause of its growth, and this trend is likely to continue.
6. Increasing Focus on Research and Development: Indian pharmaceutical businesses increasingly spend on research and development efforts, hoping to create new and niche goods. This focus on innovation improves the industry's long-term growth chances and places Indian businesses as key players in the global pharmaceutical scene.
Conclusion
Investing in tiny stocks in the Indian pharmaceutical industry offers the potential for hefty profits but carries more significant risks. By carefully studying factors such as legal environment, research and development skills, competition, and production capabilities, investors can find good business chances and leverage the growth potential of this dynamic industry. With proper due research and a long-term investment plan, investors can benefit from the industry's strong growth prospects and attractive factors.
