Some of the biggest pharmaceutical businesses in the world, renowned for their strong reputation in mass-producing generic drugs, are based in India. The manufactured drugs are used to treat a variety of ailments all around the world.

About 60% of the world’s vaccination demand is met by the nation, which leads the globe in the production of generic drugs, which make up 20% of the global supply by volume. In terms of manufacturing volume, the Indian pharmaceutical sector is ranked third in the world. Over the last nine years, it has grown remarkably, with a compound annual growth rate (CAGR) of 9.43%. In fiscal year 2023, pharmaceutical exports from India topped $25 billion, making it the world’s largest supplier of generic medications.

The industry’s product sectors include generic pharmaceuticals, vaccinations, over-the-counter treatments, and more. It is well-known for its reasonably priced vaccines and generic medications.

While sorting through the companies according to analyst ratings, investors should carefully study the following information on stock selection criteria. The top pharmaceutical stocks in India by market capitalization are shown in the following table:

1) Lupin

Lupin has shown strong financial success, increasing its revenue by 16% year over year to Rs 55.1 billion. New product introductions were the main driver of the company’s 25% YoY increase in US sales to $19 billion. With a YoY growth rate of 18%, its India business surpassed the market by a significant margin, surpassing the 8.7% growth rate of the Indian pharmaceutical market (IPM).

Additionally, thanks to its growing portfolio, Lupin experienced robust double-digit growth in established areas like Canada and the UK.

Regarding profitability, Lupin’s earnings increased by a remarkable 79% year over year to Rs 8.1 billion.

With almost 20 new product launches scheduled for FY25, Lupin has a robust pipeline with growth targets of 20–30%.

2) Aurobindo Pharma

Aurobindo Pharma’s topline increased by 10% year over year to Rs 75.7 billion. With US revenues of Rs 35.2 billion, which reflected the effects of seasonality, and European revenues of Rs 19.1 billion, the company was on course to attain approximately Rs 76.5 billion in FY25.

Stable raw material costs and operating leverage helped to preserve the operating margin at 21.4%. Aurobindo’s quarterly net profit jumped by 61% year over year to Rs 9.2 billion.
Regarding its activities, Aurobindo Pharma was established in 1986. In the single-unit production of semi-synthetic penicillin (SSP), it leads the market.

The company has a presence in several segments such as cardiovascular, neurosciences, anti-retroviral, anti-diabetes, and gastroenterology. Injectable sales make up 12% of the company’s total sales and 25% of US sales. The company provides 15 medications in 22 categories that are in short supply in the United States.

Recently, Aurobindo Pharma and MSD Pharmaceuticals, a New Jersey-based company, formed a joint venture (JV) to manufacture biologics. Aurobindo’s biologics division, TheraNym, will invest Rs 10 billion to construct a manufacturing plant in Telangana. The share price increased by 4% as a result of this announcement.

Gaining US generics business through its robust manufacturing value chain is the main goal of Aurobindo Pharma’s growth prospects.

3) Sun Pharmaceutical Industries

Since its founding in 1983, Sun Pharmaceutical Industries Limited has grown to rank among the biggest generic drug manufacturers globally. With 43 production sites, Sun Pharma is the fourth-largest specialty generic pharmaceutical firm in the world.

It provides more than 100 countries with reasonably priced, high-quality medications. The business produces and sells a wide variety of pharmaceutical formulations for both acute and chronic treatments, including specialty goods, branded generics, generics, and sophisticated, high-tech items. More than 2,000 compounds in a variety of dosage forms, including liquids, pills, capsules, ointments, creams, injectables, and inhalers, make up its broad portfolio.

Gastroenterology, nephrology, neuropsychiatry, urology, cardiology, cancer, anti-infectives, diabetology, ophthalmology, dermatology, and respiratory health are just a few of the therapeutic areas that Sun Pharma serves with its more than 30 billion doses sold annually. Western Europe, Australia, Japan, New Zealand, Canada, and China are the company’s main markets.

4) Ajanta Pharma

Ajanta Pharma has seven cutting-edge production sites in India, with its headquarters located in Mumbai. Of them, one plant concentrates on creating Active Pharmaceutical Ingredients (APIs), whereas six facilities specialize in making completed formulations. For a variety of acute and chronic treatments, the company provides a wide selection of specialty branded generic medications.

Cardiology, gynecology, ophthalmology, respiratory, pain management, dermatology, and other therapeutic fields are all covered by Ajanta Pharma. While generics are available in established markets in the United States, it offers branded generics in developing nations like South-East Asia, Africa, the Middle East, India, and the CIS.

The company also supplies Indian government agencies with cough syrups, eye drops, antibiotics, and multivitamins. Additionally, by the fiscal year 2025, the corporation wants to get about half of its energy from sustainable sources like solar.

5) Abbott India

With its main office located in Mumbai, Abbott India Limited is a division of Abbott Laboratories. The company specializes in the discovery, development, production, and marketing of a range of branded generic medications, nutritional items, diabetic and vascular devices, and diagnostic instruments.

Numerous multispecialty medications, supplements, and therapies for ailments like depression, migraine, vertigo, epilepsy, and hypothyroidism are among its product offerings. Additionally, Abbott India provides vaccinations against influenza, typhoid, and diarrhea.

Pharmaceuticals in various forms, such as liquids, ointments, pills, capsules, injectables, granules, and powders, are developed by the business. In addition to diabetes, pain, and infections, these products address neurological, gynecological, urological, and gastrointestinal disorders.

Abbott creates and sells over 600 medical items in India to improve people’s health and wellbeing at all stages of life.