Best Pharma Stocks in India: Invest for Good Returns

  • 13 Mar 2024
  • Read 19 mins read

Pharma stocks are shares of companies that make medicines and drugs. The Nifty Pharma index is made up of the top pharma stocks in India. The performance of these indexes depends on how well this index does.  Over the last ten years, Nifty Pharma has grown at an average rate of 10% per year. These stocks in India did well, even during the COVID-19 pandemic. However, after that period, high inflation affected not just pharma but many other industries too. Therefore, one needs to consider several factors like pharmaceutical stock prices, when investing and choosing the best pharma stocks. This blog best pharma companies share prices, along with explaining every important aspect related to this topic.

List of Best Pharma Stocks in India

The following is the breakdown of the best pharma stocks list along with the pharma companies' share price and market capital.

Pharma Company Name

Market Cap (in Billion INR)

Share Price (in INR)

Cipla Ltd



Aurobindo Pharma Ltd



Abbott India Ltd



Biocon Ltd



Sun Pharmaceutical Industries Ltd



Zydus Lifesciences Ltd



Apollo Hospitals Enterprise Ltd



Ipca Laboratories Ltd



Torrent Pharmaceuticals Ltd



Alembic Pharmaceuticals Ltd



Disclaimer: All the stock prices, market capitalization, net profits, and P/E ratios mentioned above are accurate as of March 2024. However, it's important to conduct thorough research before making any investment decisions in these stocks.


Overview of Pharma Companies in India

The following is a detailed description of the best pharma stocks. This includes the complete overview of the above-mentioned pharma companies along with the market capitalization. Further, highlighting their areas of focus, product ranges, and key strengths makes these companies commendable to consider for investment.

  1. Cipla Ltd

    Cipla Ltd is a major global pharmaceutical company based in India. The market capitalisation of the company is 1,220 Billion INR and a share price of 1,505 INR. It offers a wide range of high-quality, affordable medicines in areas like respiratory, antiretroviral, and anti-infective treatments. They are committed to improving global health and increasing access to essential healthcare solutions.
  2. Aurobindo Pharma Ltd

    Aurobindo Pharma Ltd is valued at 623.61 billion INR market cap and 1,068 INR share price. It is a leading Indian multinational pharmaceutical company with operations in APIs, generics, advanced drugs, and consumer healthcare. They are well-known for their top products like antibiotics, antimalarials and anti-diabetic drugs.
  3. Abbott India Ltd

    Abbott India Ltd is a subsidiary of Abbott Laboratories with a market cap of 580.07 billion INR and a share price of 27,349 INR. It offers a wide range of healthcare solutions including medicines, medical devices, and nutrition products. They are contributing significantly to India's healthcare industry.
  4. Biocon Ltd

    Biocon Ltd is a respected biopharmaceutical company based in Bangalore with a 334.45 billion INR market cap and 279 INR share price. This pharma company focuses on discovering, manufacturing, and commercialising new and cost-effective biopharmaceuticals for diabetes, cancer, immunology, and other therapeutic areas.
  5. Sun Pharmaceutical Industries Ltd

    Sun Pharmaceutical Industries Ltd is an Indian multinational with a remarkable 3,820 billion INR market cap and 1,592.15 INR share price. It ranks as the fourth-largest global generic pharmaceutical company by revenue. Additionally, they have an impressive portfolio of branded pharmaceuticals.
  6. Zydus Lifesciences Ltd

    Zydus Lifesciences Ltd stands out as a prominent company in the pharmaceutical industry. It is headquartered in Ahmedabad with a 1010 billion INR market cap and 998 INR share price. It operates in active pharmaceutical ingredients, formulations and biotechnology, and nutraceuticals. They are known for their high-quality generic and speciality drugs across various therapeutic categories.
  7. Apollo Hospitals Enterprise Ltd

    Apollo Hospitals Enterprise Ltd is considered one of India's top pharmaceutical shares with an 893.60 billion INR market cap and 6,210 INR share price. They are a healthcare provider engaged in offering healthcare services and operating standalone pharmacies.
  8. Ipca Laboratories Ltd

    Ipca Laboratories Ltd is valued at 302.00 billion INR market cap and 1,190.35 INR share price. It is a well-known Indian pharmaceutical firm with a good global reach. They manufacture and market various pharmaceutical formulations and active pharmaceutical ingredients (APIs).
  9. Torrent Pharmaceuticals Ltd

    Torrent Pharmaceuticals Ltd is an Indian firm established in 1959 with a 914.94 billion INR market cap and 2,700 INR share price. They specialise in the research, development, production, and marketing of pharmaceutical and medical products. They are dedicated to providing high-quality, cost-effective medications, with an international presence.
  10. Alembic Pharmaceuticals Ltd

    Alembic Pharmaceuticals Ltd is a well-known India-based pharma company with a 192.20 billion INR market cap and 979.40 INR share price. It has become a worldwide company that concentrates on researching, creating, making, and promoting different pharmaceutical products. This company is known for its commitment to excellence and innovation in the healthcare industry since its establishment.

Analysis of the Current Market Conditions on Pharma Stocks in India

Pharma companies care about the environment, society, and good business practices. They are working on these sustainability goals. The future looks good for the Indian pharma industry. Many new things are happening. These companies are spending more money on research and development. They are making more key ingredients for drugs in India instead of buying from other countries. The government is also supporting the pharma industry with policies and incentives to drive growth and innovation in the coming years. 

Therefore, investing in pharmaceutical stocks might be a good decision. However, it is suggested that one should be mindful of the potential risks and other factors. The industry still needs to improve quality standards, meet sustainability targets, and boost innovation to keep growing.

Types of Pharma Stocks in India

There are majorly three types of pharma stocks in India. This includes large-cap pharma stocks, mid-cap pharma stocks and small-cap pharma stocks. The following are some examples of it. This will help you to understand how these stocks are traded and the pharma share price of each.

  1. Large-Cap Pharma Stocks:-

    Large-Cap Pharma Stocks are the biggest pharmaceutical companies in India. Their market value ranges more than ₹20,000 crores. These companies have strong brands, multiple product lines, and significant research capabilities.

    Examples of Large-cap Pharma stocks:

    • Cipla

    • Dr Reddy's Laboratories

    • Cadila Healthcare Ltd. (Zydus Cadila)

    • Aurobindo Pharma Ltd

    • Divi's Laboratories Ltd

    • Glenmark Pharmaceuticals Ltd.

    • Sun Pharma

  2. Mid-Cap Pharma Stocks:

    Mid-Cap Pharma Stocks are medium-sized pharmaceutical companies in India. Their market value ranges from ₹5,000 to ₹20,000 crores. These companies have a more focused product range and fewer revenue sources compared to large-cap companies.

    Examples of Mid-cap Pharma stocks:

    • Torrent Pharma

    • Ipca Laboratories Ltd

    • Biocon

    • Alkem Laboratories

    • Natco Pharma Ltd

    • Strides Pharma Science Ltd

    • Ajanta Pharma Ltd.

  3. Small-Cap Pharma Stocks:

    Small-Cap Pharma Stocks are smaller pharmaceutical companies in India. Their market value is less than ₹5,000 crores. These companies have niche product offerings and limited research capabilities compared to larger companies.

    Examples of Small-cap Pharma stocks:

    • Suven Life Sciences

    • Centaur Pharmaceuticals Ltd.

    • Aarti Drugs

    • Granules India

    • Shilpa Medicare Ltd

    • Solara Active Pharma Sciences Ltd.

    • IOL Chemicals and Pharmaceuticals Ltd

What is the Pharma NIFTY Index?

The Pharma Nifty Index tracks the top 10 pharmaceutical companies listed on the National Stock Exchange of India (NSE). These companies are chosen based on their market capitalization, stock liquidity, and other important criteria. The index serves as a benchmark to understand the overall performance of India's pharmaceutical industry.

When the Pharma Nifty Index rises, it indicates that the pharmaceutical sector is doing well. Similarly, a decline in the index suggests that the sector is underperforming. Investors and analysts closely monitor this index to understand the performance of the Indian pharmaceutical industry. It provides valuable insights into the performance of leading pharma stocks, which can help in making informed investment decisions.

What is Pharma Penny Stocks?

Pharma penny stocks are shares of small pharmaceutical companies that trade for less than ₹10 on the Indian stock market. These companies have low market capitalisation. Penny stocks are highly volatile. 

 Investors buy pharma penny stocks hoping to make large profits. They expect these small pharma companies to grow rapidly or benefit from new developments in the industry. However, penny stocks carry significant risks. They may lack liquidity and stability.  

Investors need to research thoroughly, to invest in pharma penny stocks. This knowledge helps them understand potential opportunities and reduce the potential risks.

Factors to Consider Before Investing in Pharma Companies

The pharmaceutical industry plays a vital role in healthcare and offers potential investment opportunities. However, it's crucial to conduct thorough research and analysis before investing in pharma stocks. This includes:

  • Regulatory Environment: The pharmaceutical sector follows strict rules and regulations.  One should stay informed about regulatory changes that may impact a company's operations, and product approvals.
  • Pipeline and Product Potential: Get into the company's pipeline of potential new drugs and the market potential of existing products. One should consider upcoming regulatory targets, approvals, or patent expirations that could affect revenue on the investment.
  • Financials: One must analyse the company's financial statements, debt levels, cash flow, and overall financial health. A solid financial position is important for sustaining operations and investing in research and development.
  • Intellectual Property Rights and Patent Expirations: Patents provide pharmaceutical companies with exclusive rights to manufacture and sell a drug for a limited period. One is suggested to understand the company's patent portfolio and the timing of patent expirations to understand the potential impact on future revenues.
  • Management Team: A strong and experienced management team is essential for understanding and giving good complexities of the pharmaceutical industry, overcoming challenges, and leading to innovation. This ultimately leads to the overall company's growth and potential capital returns on investments.
  • Domestic and Global Demand: Understand the current and projected demand for pharmaceuticals. This can be done by factors such as an ageing population, increasing healthcare spending, and the prevalence of diseases.

Advantages & Disadvantages of Pharma Stocks Investment

Investing in pharmaceutical stocks offers the potential for innovation, and exposure to growth areas, but it also carries risks related to regulations and intense competition. The following is a concise explanation of the advantages and disadvantages of pharma stocks investment:

Advantages of Pharma Stocks

Disadvantages of Pharma Stocks

Many pharma companies focus on top and effective technologies. This allows investors to benefit from early-stage drug research.The industry operates under heavy regulations. Therefore, the changes in government policies can directly impact revenues.
The pharmaceutical industry often performs independently. This provides the potential to get stable against broader market fluctuations.Pricing pressure can create challenges for generic drug manufacturers.
Larger companies may acquire smaller firms with suitable pipelines. This creates chances for premium takeover prices for investors.The export-oriented nature of the Indian pharma industry allows it to currency fluctuations.
Pharma stocks offer exposure to high-growth sectors like biotechnology, personalised medicine, and rare diseases.Risks include variations in raw material and packaging costs, higher freight rates, and supply chain disruptions.

How to invest in Pharma Stocks?

The following are some crucial factors that help one to invest effectively in pharma stocks:

  • Research: It is suggested to conduct thorough research on pharmaceutical companies. This includes understanding their financial health, product pipelines, regulatory history, and competitive position within the industry.
  • Diversification: One should spread their investments across multiple pharmaceutical penny stocks to reduce the impact of any single stock's poor performance.
  • Stay Informed: Keep up-to-date with industry trends, regulatory changes, and corporate developments. It is suggested to continuously monitor the latest news, financial reports, and releases closely.
  • Understand the potential risks: One should have risk tolerance as pharma penny stocks can be highly volatile and speculative. It is suggested to invest amounts that one can afford to lose.
  • Use Limit Orders: Consider using limit orders to set the price at which you are willing to buy or sell. This helps to reduce the risk of unexpected price movements due to volatility.
  • Professional Advice: Consult financial experts or advisors who specialise in penny stocks and the pharmaceutical industry for valuable insights and recommendations.
  • Long-Term Perspective: While trading opportunities may arise, adopt a long-term approach. Investing in pharma penny stocks can be risky, and patience is often required to realise potential profits.

Who can Invest in the Pharma Stocks

Pharmaceutical stocks can be suitable for long-term investors seeking stability and growth potential. These stocks often offer consistent demand for healthcare products. Additionally. It has the potential for research and development to get future growth that can benefit investors with a horizon of several years or more. Income-oriented investors may also find pharma stocks appealing, as many companies in this sector have a history of distributing dividends to their shareholders. This provides a regular stream of income.

Value investors may find opportunities in the pharmaceutical industry. The sector sometimes includes companies that the market temporarily undervalues. This creates chances for value investors to capitalise on. Additionally, risk-averse investors who are prioritising stability and lower volatility may consider pharma stocks as part of their portfolio. This sector tends to experience less volatility compared to others. Healthcare sector enthusiasts with a deep understanding of the industry's dynamics and faith in its long-term growth prospects can also consider investing in pharmaceutical stocks.


Investing in pharmaceutical stocks can offer both opportunities and challenges. These stocks provide exposure to innovation and high-growth sectors, making them attractive for long-term investors seeking stability and growth potential. However, investors need to be aware of the pricing pressures, and operational risks that this industry consists of. Conducting thorough research, diversifying investments, staying informed, and adopting a long-term perspective is crucial for successful investment in the best pharma stocks. It is suggested that investors should approach them with caution and consider their risk tolerance and investment goals carefully. Start investing through BlinkX online trading app.

FAQ for Pharma Stocks

Some of the top pharma stocks in India include Sun Pharmaceutical Industries, Dr Reddy's Laboratories, Cipla, and Aurobindo Pharma.

One should look at factors like the company's research and development capabilities, financial health, and growth prospects when investing in the best pharma stocks

Pharma stocks carry risks such as regulatory changes, pricing pressures, and competition like any other investment. However, the sector is generally considered defensive and less volatile than others.

One should consider investing in a mix of large-cap, mid-cap, and small-cap pharma companies, as well as those with different focus areas or geographic markets.

There is no definitive "best time" as stock markets are unpredictable. However, investing during market corrections or dips can provide better entry points for long-term investors.