Top 10 Best Pharma Company Stocks in India by Market Cap

The pharmaceutical industry in India plays a pivotal role in the global healthcare system and is known for its innovation, extensive research, and large-scale production capabilities. In recent years, Indian pharmaceutical companies aren’t just fulfilling the needs of domestic consumption but also providing support to global healthcare with exports. This was evident during the Covid period too where India supplied various nations with Covid vaccines. With the demand for healthcare and pharmaceutical supplies increasing further in the years to come, the pharma sector seems a steady growth option for long-term vision. Here’s a list of the top 10 best pharma company stocks in India by market capitalisation and key details of these companies. 

Also read: Top 10 Most Valuable Companies in India by Market Cap in 2024

What is a Pharma Company?

A pharmaceutical company, often referred to as a “pharma company,” is a business entity engaged in the research, development, production, and marketing of medications and medical devices. These companies focus on various therapeutic areas, including cardiovascular, oncology, neurology, and infectious diseases, among others. Their primary goal is to develop safe and effective medicines that improve patients’ quality of life.

Pharma companies are heavily regulated, given the critical nature of their products. They must adhere to stringent guidelines set by national and international regulatory bodies to ensure the safety and efficacy of their products. The pharmaceutical industry has a big , market size and consists of various Products like: 

• Active Pharmaceutical Ingredients (APIs): These are the raw materials used to make drugs.
• Biotechnology: Companies focusing on products derived from biological sources.
• Branded Generics: These are the medicines that are sold under a specific brand name but are similar to the original patented drugs.
• Contract Research and Manufacturing Services (CRAMS): These industries provide research and manufacturing services to other pharmaceutical companies.

Also read: Top 10 Banks in India in 2024 by Market Cap

What are the Indices Reflecting Pharma Companies? 

When evaluating pharma stocks, two primary indices reflect the performance of the pharmaceutical sector in India:

• Nifty Pharma Index: The Nifty Pharma Index tracks the performance of the top pharmaceutical companies listed on the National Stock Exchange (NSE) of India. This index includes the most prominent and liquid stocks in the pharma sector, providing investors with a comprehensive overview of the industry’s health. The index is often used by investors as a benchmark to gauge the performance of pharma stocks and the sector as a whole.
• BSE Healthcare Index: The BSE Healthcare Index represents the performance of companies in the healthcare sector listed on the Bombay Stock Exchange (BSE). This index includes pharmaceutical companies as well as other healthcare-related entities, such as medical equipment manufacturers and healthcare service providers. The BSE Healthcare Index offers a broader perspective on the healthcare industry, including the pharma sector.

Also read: Top 10 Green Energy Company Stock in India by Market Capitalisation

List of Top 10 Pharmaceutical Companies in India 2024

Also read: Top 10 FMCG Companies in India by Market Cap in 2024

Key Details of Top 10 Pharmaceutical Companies in India 2024

1. Sun Pharmaceutical Industries Ltd.

CEO: Dilip Shanghvi 

Headquarter: Mumbai 

Sun Pharmaceutical Industries Ltd. is one of the top pharma companies in India. They are a major player in the global generics market. Being strong in both original and generic medicines and has a presence in many international markets. Sun Pharma’s wide range of products, strong supply chain, and smart business deals position it well for future growth. With a focus on research and development, the company is working on new products to make drugs for areas like cancer, immunology, and neurology.

2. Dr. Reddy’s Laboratories Ltd.

CEO: Anji Reddy

Headquarter: Hyderabad

It is a leading Indian pharma company with a strong focus on generics, branded generics, and biosimilars. They have a significant presence in bug markets like the United States, India, and Russia. Dr. Reddy’s is known for their innovative approach and commitment to research, particularly in developing complex generics and unique formulations. Its strong product supply and strategic partnerships position is  great for future growth.

Also read: Top 10 Defence Company Stock in India 2024 by Market Capitalisation

3.  Cipla Ltd. 

CEO: Umang Vohra

Headquarter: Mumbai

Cipla is one of the top pharmaceutical companies in India for 2024, known for its strong position in lung, anti-retroviral, and cardiovascular treatments. The company has a broad range of affordable generic drugs and is expanding its presence in developing countries. They mainly focus on respiratory treatments, including inhalers and nebulizers, and they have made a significant market share in this area. Its commitment to accessibility and affordability has contributed to its success.

4. Lupin Ltd.

CEO: Vinita Gupta 

Headquarter: Mumbai

Lupin is a known pharma company focused on making generics, branded drugs, and APIs. It has a strong presence in the U.S. and India and is growing in other countries. Lupin makes medicines for heart issues, diabetes, asthma, and infections. Its efficient operations and focus on complex drugs set it up well for future growth.

5. Aurobindo Pharma Ltd.

Founder: V. Ramprasad Reddy K. Nityananda Reddy

Headquarter: Hyderabad

Aurobindo Pharma is a leading producer of generic drugs and APIs with an established presence in the U.S. and Europe. The company is known for low-cost manufacturing and efficient operations. Aurobindo offers a wide range of medicines for infections, heart problems, the nervous system, and digestion, giving it a tough competition to other producers.

Also read: Top 10 Largest Economies in the World 2024

6. Divi’s Laboratories Ltd.

CEO:  Dr. Kiran S. Divi

Headquarter: Hyderabad

Divi’s Laboratories is a leading producer of active pharmaceutical ingredients (APIs) and compounds. The company is known for its focus on quality and safety, serving customers across many countries. Divi’s offers a wide range of APIs for treatments like cancer, diabetes, viruses, and heart conditions. Its strong research and production capabilities position it well for future growth.

7. Glenmark Pharmaceuticals Ltd.

CEO: Yasir Rawjee

Headquarter: Mumbai

Glenmark is a mainly research based pharma company specializing in generics, branded products, and new chemical entities. It has a strong presence in India and is expanding in the U.S. and other big markets. Glenmark’s product range includes treatments for lung, skin, cancer, and heart conditions. The company’s strong research and development skills and focus on complex generics and specific products give it a competitive edge.

Also read: Top 10 Manufacturing Countries in the World 2024

8. Torrent Pharmaceuticals Ltd.

Chairman : Sudhir mehta 

Headquarter:  Ahmedabad

A strong player in both local and global markets, Torrent offers a balanced mix of branded generics, generic formulas, and active pharmaceutical ingredients (APIs). It focuses on cardiovascular, central nervous system, digestive, and anti-diabetic treatments. Their success is driven by integrated operations and strong management.

9. Cadila Healthcare Ltd.

Chairman: Rajiv Modi

Headquarter:  Ahmedabad

This vertically integrated company emphasizes research and development. Cadila has a wide product range, including generics, branded formulas, and APIs, with a strong presence in both local and global markets. Key areas include cardiovascular, anti-infective, digestive, and pain management. Their innovation and product pipeline are key to future growth.

10. Natco Pharma Ltd.

CEO: Rajeev Nannapaneni 

Headquarter: Hyderabad

NATCO Pharma is a leading Indian pharmaceutical company known for its expertise in oncology and hepatology. The company focuses on developing complex generics and specialty medicines, providing affordable alternatives in critical therapeutic areas. With strong R&D capabilities and a global presence, NATCO has made significant inroads into international markets, solidifying its position as a key player in the pharmaceutical industry.

Also read: Top 10 Best Healthcare Company Stocks in India by Market Cap

Why Invest in a Pharma Company Stock?

Investing in pharma stocks have several advantages like:

• Resilience in Economic Downturns: Pharma companies produce essential goods that people need regardless of economic conditions, such as medications and medical devices. This constant demand makes pharmaceutical stocks relatively resilient during economic downturns, providing stability to your portfolio when other sectors might struggle.
• Portfolio Diversification: Pharmaceutical stocks add an element of stability to an investment portfolio, especially during economic changes. The demand for medicines and healthcare services remains steady, offering a counterbalance to more volatile sectors. This diversification can help reduce overall portfolio risk and improve long-term returns.
• Exposure to Healthcare: By investing in pharma stocks, you gain exposure to the broader healthcare sector, which is one of the most crucial and rapidly growing industries globally. This exposure not only diversifies your investments but also provides valuable insights into healthcare trends and innovations, enhancing your understanding of this vital sector.
• Long-Term Growth: The aging global population, along with increasing healthcare needs, provides a strong foundation for the long-term growth of pharmaceutical companies. As the demand for healthcare products and services continues to rise, pharma companies are well-positioned to benefit, offering investors the potential for substantial capital appreciation over time.

Also read: 10 Fastest Growing Economies of the World in 2024

Wrapping Up

The pharmaceutical sector in India is a cornerstone of the global healthcare industry, offering significant investment opportunities. The top 10 pharma stocks listed by market cap represent some of the best companies in the industry, each with its unique strengths and growth potential. Whether you’re a seasoned investor or new to the market, pharma stocks offer a blend of stability, growth, and income potential, making them an essential addition to any diversified portfolio.

Also read: 

• Best NRI Investments in India: Top 10 Investment Options for NRIs/OCIs in India 2024
• Best SIP to Invest in 2024 – Top 10 SIP Mutual Fund Plans for NRIs/OCIs
• 10 Mutual Funds that Doubled Investor’s Wealth in 3 Years

Invest in Indian Markets as NRI/OCI with SBNRI

NRIs/OCIs can now download the SBNRI App and choose to invest in different mutual schemes in India with ease and build wealth for the long run. You can also get detailed mutual fund advice from experts at SBNRI. Also, visit our blog and YouTube channel for more details.

SBNRI is an authorized Mutual Fund Distributor platform & registered with the Association of Mutual Funds in India (AMFI). ARN No. 246671. NRIs willing to invest in mutual funds in India can download the SBNRI App to choose from 2,000+ mutual fund schemes or can connect with the SBNRI wealth team to better understand Mutual Fund investments.

Disclaimer: This blog has been written exclusively for educational purposes. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions. SBNRI does not intend to predict future returns, please read all related documents before investing.

FAQs

Which Pharma company has the largest market cap in India?

Sun Pharmaceutical Industries Limited in India has the largest market capitalization.

Which Pharma has the highest market cap?

Eli Lilly was the world’s most valuable pharmaceutical company with a market cap of over $578 billion.

Which country is no 1 in Pharma?

The United States of America is at the top in pharmaceuticals.

Who is the pharma king of India? 

Dilip Shanghvi, born on October 1, 1955, in Amreli, Gujarat, is the founder of Sun Pharmaceutical Industries Ltd. He is called “Pharma King of India” due to his significant contributions to the pharmaceutical industry.

What factors should I consider before investing in pharma stocks?

Consider factors such as the company’s market cap, revenue growth, research and development capabilities, product pipeline, and global market presence.

Are pharma stocks suitable for long-term investment?

Yes, pharma stocks are generally suitable for long-term investment due to their stability, consistent demand, and potential for innovation-driven growth.

How does the performance of the Nifty Pharma Index compare to other indices?

The Nifty Pharma Index tracks the performance of top pharmaceutical companies in India and often performs differently compared to broader indices like Nifty 50, reflecting the unique dynamics of the healthcare sector.

What are biosimilars, and why are they important in the pharma industry?

Biosimilars are biologic medical products highly similar to already approved reference products. They are important because they offer more affordable treatment options, expanding access to essential medications.