It is widely known that a person must have many sources of income. Many people invest in the stock market to have some extra income.
However, one must note that investing in the stock market is risky. If you do not choose the proper share, you will suffer a loss in the market.
Most of the stock traders like investing in the Pharma Companies in India. Also, the Pharma companies have mostly given excellent returns.
Thus, investors must find out the Best Pharma Stocks to buy and invest in them. You must also keep in mind that market analysis is critical.
For example, a person must research the stock market to know about the best stocks.
Know about Pharma Sector in India
The Pharma Industry of India has a value of US$42 billion as of 2021. Not to mention, India is the third-largest provider of generic medicines by volume globally. India has a share of 20% among the total global pharma exports.
Along with that, India is also the largest vaccine supplier globally. India manufactures around 50% of the entire vaccine around the world. This proves that the Pharma sector of India is massive.
Thus India has the best Pharma Sector Stocks to buy. It was reported recently that most of the drugs made in India are low-cost generic drugs.
A few of the Top Pharma Companies in India are Divi’s Lab, Cipla, Biocon, Cadila Health, and many more.
Here we will discuss the top Pharma stocks in India. We will also discuss investing in the shares of these companies.
Top 10 Pharma Stocks to Buy in India – List of Best Pharma Shares to Buy
We have already given small details about the Best Pharma Shares in India. We shall use those details to know more about the top 3 Pharma Shares. So let’s get into it.
On the top of our list, we have Sun Pharma Inds. There are various reasons why you should invest in this share. The most important reason is that the Company has low debt. Also, the Stock gave a 3-year return of 95.77%
The second on our list is Divi’s Lab. Firstly, the Company has a high Piotroski Score. This means that the Company has strong financials.
The company has given a massive return of 489.73% in the last five years. Thus, this is one of the best Drug Shares to Buy.
The third on the list is Cipla. Firstly, their total income has grown by 9.81% compared to last year. Most importantly, the Company has given 96.86% in the previous three years.
Sun Pharmaceutical Industries Ltd – Best Pharma Shares to Buy
Sun Pharma Industries Limited started in 1983. Only Dilip Shanghvi started the Company in Vapi, Gujarat. It is an Indian multinational pharma company.
The headquarters of the firm is located in Mumbai, Maharashtra. Not to mention, the Company started with just five products to treat psychiatry ailments. In 1987 they introduced the Cardiology products.
Sun Pharma manufactures and sells pharma formulations and APIs across 100 countries worldwide. Also, it is the largest pharma company in India and the fourth largest speciality generic pharmaceutical company in the world.
Thus Sun Pharma is one of the best Pharmaceutical Stocks in India.
Products and Services
The products of this Company mainly include medicines and drugs. They are for treating diseases in both humans as well as animals.
They also produce APIs, which are used for making the drugs. Other than medicines, they also make inhalers, injections, capsules, creams, and others.
Why invest in Sun Pharma Industries Ltd. stocks?
- The price of the share is in the mid-range. Thus it is one of the best Pharma Shares to Buy for new and master traders.
- Additionally, the company share price has reached a new 52 Week High.
- Another reason to invest is that the Company has a Low Debt. This means the Company is doing well.
- They also have increased profits in the last three quarters.
- Above all, you have the opportunity of Positive Breakout Second Resistance.
- The analysts have given a buy rating for the long term.
- Additionally, this stock is expected to give high returns shortly.
- Investors can also enjoy regular dividend payments.
- Lastly, the Stock gave a 3-year return of 95.77%.
Divi’s Laboratories – Best Medicine Shares to Buy in India
Divis Laboratories Ltd. was started in 1990. This Company is a producer of APIs and intermediates. The headquarters is located in Hyderabad, Telangana, India.
Not to mention, Divi’s Lab is the second most valuable pharma company as per market capitalization. At first, they started developing commercial processes for producing APIs and intermediates.
Later on, they started producing API and intermediates themselves. In 1995 they opened the first manufacturing facility.
Following that, in 2002, they opened their second manufacturing facility. Further, on February 17, 2003, the Company went public with its IPO. Thus becoming one of the Best Medicine Shares to buy in India.
Products and Services
The Company is famous for producing APIs. All the APIs are from different categories like anti-inflammatory, Therapeutic and more.
These products are exported to Iran, China, Japan, Korea, Taiwan, Russia, Saudi Arabia, etc. Above all, they produce vitamins and carotenoids for the food, beverage, pharma, and nutritional industries.
Why invest in the Divis Laboratories stocks?
- The price of this stock is in the higher range. Thus, it is one of the best Pharma Stocks in India for experienced investors.
- Further, The Company has a High Piotroski Score. This means that the Company has strong financials.
- It has a rising Net Cash Flow along with cash from operating activity.
- Divi’s Lab is a company with high TTM EPS Growth.
- They also have a rising Delivery Percentage compared to Previous Days and Months.
- Additionally, the Company also pays out dividends. This means that the Company is strong.
- Divi’s Lab’s total income has grown by 28.02% compared to last year.
- Above all the Company has given 489.73% in the last five years.
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Cipla – Top Pharma Sector Stocks in India
Cipla Limited started in 1935. The founder of this company is Khwaja Abdul Hamied. Initially, the name of the Company was The Chemical, Industrial & Pharmaceutical Laboratories.
Later on, it was changed to the current name. Cipla is an Indian multinational pharmaceutical company. The headquarters is located in Mumbai, India.
Most importantly, they develop products for treating various diseases. This includes medicines for Arthritis, diabetes, depression, weight loss, and more.
The Company has offered a lot of services to the world. For example, they provided generic AIDS and other drugs to treat poor people from developing countries.
Further, they also launched the world’s first oral iron chelator, Deferiprone. Thus, Cipla has one of the Top Pharma Sector Stocks in India.
Products and Services
The products of Cipla are famous across the world. They use modern machines and skilled staff for making powerful medicines.
Further, the products of Cipla consist of around 560 medicines. This includes inhalers, capsules, creams, eye ointments, shampoos, injections, gels, etc.
They also produce clinical tools like Cardiovascular Disease Risk Calculator, DAPT Score Calculator, etc.
Why invest in the Cipla Stocks?
- The stock price is in the mid-range. Thus it is a good Pharmaceutical Share Price for new and master traders.
- Additionally, the Company has a High Piotroski Score. This means that the Company has strong fundamental analysis.
- Not to mention, Cipla is using its capital effectively to generate profit.
- Along with that, the RoCE of the Company has been improving in the last two years.
- Cipla is managing the Assets perfectly for generating Profits.
- Also, the ROA has been improving for the last two years.
- Their total income has grown by 9.81% in comparison to last year,
- Above all the Company has given 96.86% in the previous three years.
Dr Reddy’s Lab – Top Pharma Companies in India
Dr Reddy’s Laboratories Ltd. started in 1984. It is a multinational pharma company. Not to mention the products of this Indian Company are exported to various other countries.
Initially, Dr Reddy’s only supplied to Indian drug manufacturers. Later on, it started exporting to other less regulated markets.
After 1990 they moved into the regulated markets like the U.S. and Europe. Not to mention that Dr Reddy’s was listed among 1200 of India’s most trusted brands. Thus, Dr Reddy is one of the Top Pharma Companies in India.
Products and Services
Most doctors prefer the products of this Company. They are also known for making new products in a short period.
Their product range can be divided into medications, APIs, OTC products, Therapies, and Biosimilars. At present, they produce around 190 variants of medicinal drugs.
These drugs are used for various problems and create high-quality APIs. Finally, their services include multiple therapies like Urology, Dental, and more.
Why invest in Dr Reddy’s Laboratories stocks?
- The stock price is in the high range. Thus it is a good Pharma Share Price for master traders.
- The most crucial factor is that the Company has a high TTM EPS Growth
- Additionally, the Company has Low Debt. This means that the Company is doing great financially.
- Dr Reddy’s Lab has a robust cash-generating ability from the core business.
- Further, their cash flow has improved from its operations for the last two years.
- Not to mention, the stock has given a return of 52.02% in the last three years.
- The Company also pays out dividends. This shows that the Company is stable financially.
- Above all, the analysts have given the share a high rating. Thus, you must include this stock in your portfolio.
Gland Pharma – Top Drug Stocks in India
Gland Pharma started in 1978 in Hyderabad. Initially, the Company was a contract producer of small volume liquid parenteral products. They have become one of the largest and fastest-growing injectable-focused companies.
Not to mention, Gland Pharma is present across 60 countries. These countries include the United States, Canada, Australia, Europe, India, etc. Gland Pharma has reached many milestones since it started.
In 1994 they became a public limited company from a private limited company. Most importantly, the products of Gland Pharma are trusted by many doctors and patients all over the world.
The drugs made by this Company are imported under the legal control of U.S. entities. Thus, we can say that Gland Pharma has one of the Top Drug Stocks in India.
Products and Services
The products of Gland Pharma are used to enhance and save people’s lives around the world. Their products include a vast range of therapeutic category products.
Some of the categories are Anti-Infectives, Hormones, Blood Related, and many more. They also have Respiratory, Vitamin / Mineral / Nutrients related products.
Why invest in the Gland Pharma stocks?
- The price of the share is on the higher side. Thus, it is one of the best Drug Share Prices for master traders.
- Firstly, Gland Pharma is a company with high TTM EPS Growth.
- Further, they have shown incredible quarterly growth as per the recent results.
- They also had an increase in quarterly net profit and an increasing Profit Margin.
- The Company has given a great return of 30.29% in the past year.
- The Company has strong financials, which is attracting more investors.
- Above all, the company’s total income has grown by 31.51% compared to last year.
- Finally, this is the best time to hold the stock for good returns in the coming months.
Piramal Enterprises – Top 10 Pharma Stocks
The Piramal Group has three key companies. Among them, we are going to focus on Piramal Enterprises today. The Piramal Group bought the Nicholas Laboratories in 1988. 
Later on, this was changed to Piramal Healthcare Ltd. At present, the name is Piramal Enterprises. The Company is involved in Healthcare, Life sciences, Information management, and financial services.
There is no doubt that this Company is the largest Company under the Piramal Group. The Company is also listed at the Bombay Stock Exchange and National Stock Exchange.
Thus making them one of the Top 10 Pharma Stocks. Piramal Enterprise was ranked in the top 50 largest corporations in India.
Products and Services
Piramal Pharma is a part of Piramal Enterprises. Piramal Pharma is involved in – Pharma Solutions, Critical Care, Consumer Products.
Pharma solutions offer drug discovery services and produce drug substances and products. Piramal critical care is the third-largest producer of Inhaled Anesthetics.
This division under Piramal Pharma is present in more than 100 countries across the globe. The Consumer Products Division of the Company caters to Indian self-care.
Above all, they improve people’s lives by offering great products.
Why invest in the Piramal Pharma stocks?
- The stock price is on the higher side. Thus it is one of the best Medicine Share Prices for master traders.
- Firstly the Company has a Strong Annual EPS Growth.
- Further, they have shown a Strong QoQ EPS Growth as per the recent results.
- Piramal Enterprises had Growth in Net Profit along with increasing Profit Margin.
- The Company also pays dividends. This means that the Company is financially stable.
- They also have a rising Delivery Percentage compared to Previous Days and Months, Strong Volumes.
- Not to mention, the share has given a return of 26.32% in the last year.
- Above all, the analysts have given a high rating in favor of this share. Thus, you must include this share in your portfolio.
Biocon – Best Pharma Stocks to Buy
Biocon Limited started in 1978. It is an Indian biopharma company. The founder of Biocon is Kiran Mazumdar-Shaw. This Company is involved in the making of APIs. These APIs are sold to around 120 countries around the world.
This includes developed markets like the United States and Europe. Additionally, they also produce novel biologics along with biosimilar insulins and antibodies.
Biocon is the first Indian Company to manufacture and export enzymes to Europe and the USA.
They are also the first Indian Company to be approved by USFDA for producing lovastatin. Thus, Biocon is one of India’s Best Pharma Stocks to buy.
Products and Services
Biocon is involved in making high-quality, life-saving biotherapeutics.
Not to mention, they have made advanced therapies affordable for many patients who have chronic conditions. They also supply high-quality APIs to drug makers all around.
Additionally, they make products for areas like diabetes, oncology, nephrology, immunology, and other life-threatening conditions.
Above all, their products are preferred by many patients, physicians, clinics, pharmacies, and hospitals.
Why invest in Biocon stocks?
- The price of this stock is on the lower side. Thus it is one of the best Pharma Shares in India for new traders.
- Firstly, we can see a growth in the Company’s Net Profit and increasing Profit Margin.
- The Piramal Enterprise is a Company with Low Debt. This means that it is more stable.
- They also have an Increasing Revenue every quarter for the past two quarters.
- Additionally, they have a Rising Delivery Percentage Compared to Previous Days and Months.
- Further, the analysts suggest that this share is a good buy for the long term.
- Not to mention, the stock also pays out dividends. This means that the Company is financially stable.
- Above all, Biocon has given a return of 5.87% in the past three years.
- Biocon Feed Share Forecast suggests that it has very good future potential.
Torrent Pharma – Top Pharma Companies in India
Torrent Pharmaceuticals Ltd started in 1972. It is one of the largest pharma companies in India. We can also see its presence around the world.
Torrent Pharma is a big player in cardiovascular (CV) and central nervous system (CNS) therapeutic areas. In 1980 they started their first manufacturing facility at Vatva. Later on, in1983, they got their first export order.
Further, they started their second manufacturing plant in 1986. The Company launched 31 new products in 2001-02. Among these products, 8 were first-time launches in India.
Torrent Pharma has done a lot more up till today. Thus, it is one of the top Pharma Companies in India.
Products and Services
Torrent Pharma is involved in producing affordable medicines for patients. As has been noted that this Company is a big player in the therapeutic areas of CV and CNS
Why invest in the Torrent Pharma stocks?
- The price of the share is on the higher side. Thus it is one of the Top Pharma Stocks to buy for master traders.
- Firstly the Company has a High Piotroski Score. This means that the Company has strong financials.
- Further, the Company is using its capital properly to generate profit.
- Also, the RoCE of the Company has been improving for the last two years.
- Not to mention they are using the Shareholders’ fund effectively.
- Their Return on equity (ROE) has improved for the last two years.
- Additionally, the analysts have also given a buy rating for the long term investment.
- The stock pays out dividends. This means the Company is stable.
- In this year, their total income has improved by 4.58%.
- Above all the Company has given a return of 91.00% in the last five years.
Alkem Laboratories – Best Pharma Companies in India
Alkem Laboratories Limited started on August 8, 1973. This took place at Patna under the Companies Act of 1956. This Company is one of the Best Pharma Companies in India.
Later on, Alkem Laboratories became a public limited company in 1988. The Company opened its first plant at Taloja, Maharashtra, in 1978.
Further, they opened a manufacturing facility in Mandwa, Maharashtra, in 1992. This facility was converted into an API facility in 2005. In addition, Alkem set up a research and development facility in 2003.
This was done for ANDA development at Taloja, Maharashtra. They have many more great achievements. For example, the anti-infective drug Taxim of Alkem is the first anti-infective drug to cross Rs 100 crore sales in India.
Products and Services
This Company develops, manufactures, and sells pharma and nutraceutical products. Further, the Company produces branded generics, generic drugs (APIs), and more.
Not to mention, they have a portfolio of 800 brands in India. At present, Alkem has 19 manufacturing facilities in India and 2 in the U.S.
Why invest in the Alkem Laboratories stocks?
- The price of this share is on the higher side. Thus it is one of the best Pharmaceutical Stocks to buy for master traders.
- Firstly they have a Rising Net Cash Flow and Cash from Operating activity.
- Alkem Laboratories is using its capital properly to generate profit –
- Further, the RoCE of the Company has been improving in the last two years.
- They are also using Shareholders’ funds effectively. Also, the Return on equity (ROE) has been improving for the last two years.
- Additionally, the Company pays out dividends. This means that the Company is relatively stable.
- They also had a growth of 8.13% in total income last year.
- Above all, they gave a good return of 98.64% in the past three years.
Cadila Healthcare – Top 10 Pharma Shares to Buy in India
Cadila Healthcare Limited is currently known as Zydus Lifesciences Limited. This Company started in 1952. The founder of the Company is Ramanbhai Patel.
He started the Company with his partner Indravadan Modi. At present, Zydus is an Indian multinational pharma company. The headquarters is located in Ahmedabad.
They are primarily engaged in the production of generic drugs. Let’s talk about the past of this Company. The Patel and Modi families split in 1995. After this, the Modi family moved to a new company called Cadila PharmaLtd.
On the other hand, the Patel families own Cadila Healthcare Ltd. Cadila Healthcare had its IPO on the Bombay Stock Exchange in 2000.
This makes them one of the Top 10 Pharma Shares to buy in India. Above all, Cadila Healthcare received a Wellcome Trust Award.
Products and Services
Zydus Lifesciences Limited develops and makes various products. This includes a wide range of drugs, skincare products, herbal products, and other OTC products.
They have also produced generics for hepatitis C treatment since 2015.
Why invest in the Cadila Healthcare stocks?
- The price of the stock is on the lower side. Thus, it is one of the best Pharmaceutical Shares to buy for new investors.
- The stock also pays out dividends. This means that the Company is financially stable.
- Additionally, the stock has returned 6.57% in the past three years.
- Also, Cadila’s total income has increased by 13.73% compared to last year.
- The analysts said that the stock might reach the upper levels in weeks.
- This stock is outstanding for short-term gains.
- Not to mention, Cadila is growing a lot in the share market.
- Most importantly, this is the right time to buy this stock because the price is low.
Aurobindo Pharma – Best Pharma Sector Stocks to Buy
Aurobindo Pharma Ltd started in 1986. Initially, the Company began with a single unit in 1988. At present, they have reached out to the world.
Currently, they have 25 branches across the globe. They went public in 1992, but their IPO came in 1995.
Products and Services
They produce various products. This includes APIs, Formulations, R&D, and more. These products are supplied to India and 150 other countries.
Why invest in the Aurobindo Pharma stocks?
- The price of the share is on the lower side. Thus it is one of the best Pharma Sector Stocks to buy for new investors.
- Firstly they have a solid Annual EPS Growth, a good sign if you want to invest.
- Aurobindo Pharma is good at managing Assets for generating Profits.
- Additionally, their ROA has been improved for the last two year
- The Company has Low Debt. This means the Company is stable.
- The analysts say that this share is good for the long term.
- They also pay out dividends. This is a good sign for traders.
- The Company has given a return of 7.58% in the past month.
Ranbaxy Laboratories Ltd. – Best Pharma Companies Stocks to Buy
Ranbaxy Laboratories Limited started in 1937. Initially, they started as a distributor for the Japanese Company Shionogi.
Further, Ranbaxy formed a U.S. company in the late 1990s. This took them a step closer to entering the pharma market of the USA.
The Company went public in 1973, and Ranbaxy owners were changed twice. Daiichi Sankyo completely took over Ranbaxy in November 2008.
Later on, Sun Pharma took a 63.4% share of Ranbaxy from Daiichi Sankyo. This took place recently, on April 7, 2014.
Products and Services
Their products are mainly drugs and medicines; above all, these are for both animals and humans.
Why invest in the Ranbaxy Laboratories stocks?
- The price of this stock is on the lower side. Thus it is one of the best Pharma Companies Stocks to buy for new traders.
- Firstly, the price of this share has gone up by 47.00%, a good sign for traders.
- This stock price has recovered a lot from its 52week lows.
- This is the perfect time to hold the stock.
- It is better to sell the stock at the highest price for maximum returns.
- Above all, the Company had a profit of 441.46% after tax.
Abbott India – Best Pharma Companies in India
Abbott India started in 1910. It is one of the oldest and the best Pharma companies in India.
They provide various products and services to hospitals, patients, doctors, consumers, blood banks, and laboratories.
Not to mention their services are available in both rural and urban areas. This makes them one of the best Medicine Companies Shares to buy.
Products and Services
Abbott provides a wide range of products, including medical devices, nutrition products, and various drugs.
Why invest in the Abbott India stocks?
- The price of this share is on the higher side. Thus, it is a good pharma share for master traders.
- This Company has used Shareholders’ funds in the best way.
- The Return on equity (ROE) has improved for the last two years.
- Abbott India is also good at managing Assets to generate Profits.
- Not to mention the ROA of the Company has been improving for the last two years.
- Additionally, they had a Growth in Net Profit and an increasing Profit Margin.
- Above all, they have given a great return of 270.87% in the last five years.
- It is better to invest in this stock for the long term.
- Further, the Company pays out dividends. This means the Company is stable.
Lupin Ltd. – Best Pharma Stocks to Buy
Lupin Ltd. started in 1968. The Company has existed for more than 50 years.
They have made a place for themselves in the Pharma Industry, making them one of the best Pharma Companies in India.
The name of the Company is taken from the flower Lupin.
Products and Services
Lupin has focused on many areas of the Pharma Industry. This includes diabetology, cardiovascular, anti-infectives, asthma, pediatrics, etc.
Why invest in Lupin stocks?
- The price of the stock is on the lower side. Thus it is one of the best pharma stocks to buy for new investors.
- The Company has shown a Strong Annual EPS Growth.
- The share has a Bullish Harami (Bullish Reversal) chart indicator. This is a good sign for investors.
- Not to mention the Company has used its capital properly to generate profit.
- Additionally, the RoCE of the Company has been improving for the last two years.
- The stock also has a Low PE (P.E. < = 10).
- The Company also pays out dividends per share. This means the Company is stable.
- Above all the Company has given a return of 0.51% in the past three years.
- Further, their total income grew by 0.27% in the last year.
Glaxosmithkline Pharma Ltd. – Best Drug Stocks in India
GlaxoSmithKline Pharma Ltd started on November 13, 1924. At first, the name of the Company was H.J.Foster & Co. Limited.
At that time, they worked as an Agency House for distributing Baby Food.
This Company is an Indian research-based pharma and healthcare company. Above all, they are one of the best Drug Stocks in India.
Products and Services
Their product portfolio includes medicines and vaccines. They provide medicines for oncology, dermatology, diabetes, and more.
Additionally, they offer vaccines for hepatitis A, hepatitis B, chickenpox, tetanus, and many more.
Why invest in the GlaxoSmithKline Pharma stocks?
- The share price is in the mid-range; thus, it is a good Pharma share for new and master traders.
- The company has a Strong Annual EPS Growth. This is visible in the recent results.
- They have used their capital properly to generate profit.
- Further, the RoCE of the Company has been improved for the last two years
- We can see Growth in Quarterly Net Profit along with increasing Profit Margin.
- The Company also pays out dividends. This means the Company is stable.
- Above all, this Pharma company has given a return of 18.64% in the last three years.
How to Find Pharma Stocks for Trading?
As we have noted, people invest in stocks to grow their money. If these people do investment in a failing company, they will suffer losses.
Thus, it is essential to research the market before they Trade in Pharma Stocks. Here are some tips that will help to choose the right stock.
- Firstly and most importantly you have to check the growth of the Company. First, make sure the company grew its income in the past years.
- You have to compare the Company to the other Pharma companies. This will help you find out which company is doing better.
- In addition, check the debt to equity ratio.
- Also, check the P.E. ratio of the Company to understand the market value.
- If the Company is paying dividends, then the Company is more stable. Thus, look for a Pharma company that pays dividends.
- If the Company has a high Piotroski score, you must invest in the Company.
- Above all, look for companies with strong leaders. A company with a strong leader will be more stable.
How to Invest in Pharma Sectors Stocks?
Here is a step by step process on how to Invest in Pharma Stocks –
- Firstly you need to have a Demat and trading account for investing.
- To open a Demat account, choose a broker of your choice. Also, look for the facilities and services you will get.
- Then submit the Demat application form and a document for verification and KYC purpose.
- As soon as your details are verified, your account will be open. Then you will receive the login details in your registered email I.D.
- After this, you have to download and install the trading platform.
- If you want to use the browser-based platform, you do not need to download anything. On the other hand, if you are using a mobile application, you need to download it from the app store.
- After setting up your account, add your favourite stock to the watch list. This will help you track the share price at all times.
- Finally, you need to analyze the share before buying or selling it.
Top Pharma Companies in India – Conclusion
The information provided about the Top Pharma companies in India is based on market research.
It will suggest that you conduct more research on these stocks and come to a final decision. It is always better to rely on yourself while making trading decisions.
Above all, never take suggestions from others regarding stocks. Most importantly, invest in stable and old companies.
Of course, you must always choose companies with yearly growth and low debt. All the best for your investing journey!
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