Some top pharma stocks that produced great returns in the past financial year

Date : 07/09/2023
Read: 4 mins

The pharma industry has been one of the most prosperous. Last year some stocks generated over 15% returns, making them great future-proof investment options.

Pharma stocks that produced above 15% 1-year returns

Also Read: 5 Best Pharma Stocks for 2023

The Indian pharma industry has witnessed rapid growth and is poised to touch a USD 130b valuation by 2030. Constant research and increasing demand are among its top drivers. If you are looking for some prospective pharma stocks to invest in, here are some stocks that produced great returns.

Highlights

Between FY18 to FY23, the Indian pharmaceutical industry produced a compounded annual growth rate (CAGR) of 6-8%
India supplies around 20% of the global pharmaceutical demand
In the previous financial year, many of the top pharma stocks yielded over 15% returns

Top pharma company picks

With over 169 pharma stocks available for purchase in the country, it is necessary to identify the best ones for your financial goals. Here are some solid ones:

Abbott India Ltd.

Abbott India Ltd. is one of the fastest-growing pharma businesses in India. Headquartered in Mumbai, the company specialises in producing trusted and high-quality medicines covering many health-related fields like gastroenterology, metabolic disorders, women's health, cardiology, and primary care.

Revenue (Jun’23): ₹ 1.48 TCr

Earnings per share: ₹ 446.78

Share Price Returns:

1 Year: 21.16%
3 Years: 27.2%
5 Years: 174.44%

Alembic Pharmaceuticals Ltd.

Alembic Pharmaceuticals is India’s leading pure-play pharma player. With over 110 years of experience, the institution prides itself on producing and supplying international generics, Indian formulations, and active pharmaceutical ingredients across the world.

Revenue (Jun’23): 1.49TCr

Earnings per share: 26.89

Share Price Returns:

1 Year: 5%
5 Years: 218.61%

Mankind Pharma Ltd

Founded in 1991, Mankind Pharma Ltd is India’s fourth largest pharmaceutical company when it comes to domestic sales. They produce and manufacture a variety of products that work on acute and chronic illnesses. They also specialise in regular consumer wellbeing and healthcare products as well.

Revenue(Jun’23): 2.58TCr

Earnings per share: 12.14

Share Price Returns:

1 Year: 25.17%
3 Year: 22.33%
5 Year: 27.67%

Sun Pharmaceutical Industries Ltd.

Sun Pharma is the largest medicine producer in India and was established in 1983. It is one of the safer stocks to invest in, given its regular growth and current size. Globally, Sun Pharma stands as the 4th largest producer of generic pharmaceuticals.

Revenue (Jun’23): 11.94TCr

Earnings per share: 8.4

Share Price Returns:

1 Year: 28.43%
3 Year: 55.77%
5 Year: 71.64%

Dr Reddy’s Laboratories Ltd.

Established in 1984, Dr Reddy’s Labs, while not yet one of the largest players in the pharma sector, is catching up quite quickly with the top players. Its Active Pharma Ingredients (API) section is one of its strongest diversifiers. Its revenue keeps growing and is a good stock to invest into.

Revenue (Jun’23): 6.74TCr

Earnings per share: 84.22

Share Price Returns:

1 Year: 31.89%
3 Years: 4.47%
5 Years: 112.38%

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Disclaimer: This article is intended for general information purposes only and should not be construed as insurance or investment or tax or legal advice. You should separately obtain independent advice when making decisions in these areas.

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