The Indian pharmaceutical sector is the world’s third-largest in terms of volume and the fourteenth-largest in terms of value. top Indian pharma companies are also among the biggest players globally. the domestic pharmaceutical industry achieved an annual turnover of ₹ 3,44,125 crore In the fiscal year 2021-222. During the same period, the total value of pharmaceutical exports and imports stood at ₹ 1,74,955 crore and ₹ 60,060 crore, respectively.
India’s pharmaceutical industry plays an important role in the country’s foreign trade. it offers attractive opportunities and avenues for investors. With numerous United States Food and Drug Administration (USFDA) and World Health Organization (WHO) Good Manufacturing Practices (GMP)-compliant facilities, India supplies affordable and low-cost generic drugs to millions of people worldwide. Consequently, India holds a prestigious position among the top pharmaceutical manufacturing countries globally.
Growth Of the Pharma Sector in Recent Years
| Financial Year | Turnover | Growth Rate |
| 2021-2022 | ₹ 3,44,125 Crores | 4.89 % |
| 2020-2021 | ₹ 3,28,054 Crores | 13.12 % |
| 2019-2020 | ₹ 2,89,998 Crores | 12.17 % |
| 2018-2019 | ₹ 2,58,534 Crores | 14.18 % |
| 2017-2018 | ₹ 2,26,423 Crores | 3.03 % |
Following are the top 10 pharma companies based on their market capitalization.
1. Sun Pharmaceutical Industries Limited
Incorporated in 1983, Sun Pharma is one of the prominent specialty generic pharmaceutical companies in India. it is the largest pharma company in India in terms of market capitalization, and the fourth-largest in the world with an impressive global revenue of more than $ 5.1 Billion. it has more than 40 manufacturing infrastructures and its products are trusted by more than 100 countries.
Sun Pharmaceutical offers a wide and diverse product portfolio of generic and specialty medicines. It offers a wide range of product lineup that encompasses generics, branded generics, specialty medications, technologically complex products that are challenging to manufacture, OTC drugs, antiretrovirals (ARVs), APIs, and intermediates.
| Market Cap | ₹ 2,30,336 crore |
| Revenue | ₹ 38,654.5 crore |
| Net Income | ₹ 3,405.8 crore |
| 3-Year Sales CAGR | 9.97% |
| EPS | ₹ 13.6 per share |
| P/E Ratio | 28.7 |
| ROE | 14% |
| ROCE | 18.4% |
| No. of Employees | 37,500+ |
2. Dr. Reddy’s Laboratories
Dr. Reddy’s Laboratories is one of India`s most trusted pharma companies. and it is the second-largest pharma company in India by market capitalization. It offers a wide range of products and services across the sectors such as APIs, generics, branded generics, and biosimilars.
Branded Generics is the company’s most focused segment. it is operated in emerging markets outside India too. the company’s products are sold in more than 30 countries. In FY 2022 alone, the company successfully launched 41 products, this shows the commitment and goal-driven approach of the company.
| Market Cap | ₹ 73,942 crore |
| Revenue | ₹ 20,514.4 crore |
| Net Income | ₹ 2,182.5 crore |
| 3-Year Sales CAGR | 11.7% |
| EPS | ₹ 219 per share |
| P/E Ratio | 20.3 |
| ROE | 11.5% |
| ROCE | 14.1% |
| No. of Employees | 7,500 |
3. Divi’s Laboratories
Divis Lab is one of the prominent pharma companies in India. the company is headquartered in Hyderabad. divis lab is having a strong history of spanning 30 years. divis lab is one of the most trusted suppliers of generic APIs. The company specialized in the production of APIs, intermediates, and registered starting materials. Divis has a vast network of consumers across more than 95 countries.
| Market Cap | ₹ 73,706 crore |
| Revenue | ₹ 8,959.8 crore |
| Net Income | ₹ 2,960.5 crore |
| 3-Year Sales CAGR | 21.9% |
| EPS | ₹ 90.3 per share |
| P/E Ratio | 30.8 |
| ROE | 28.2% |
| ROCE | 35.1% |
| No. of Employees | 16,500+ |
4. Cipla Limited
Incorporated in 1935, Cipla is one of the leading pharma companies in India. The company’s extensive product portfolio is equipped with a wide range of pharmaceuticals, including complex generics, respiratory medications, anti-retroviral drugs, urology treatments, cardiology medications, anti-infectives, Central Nervous System (CNS) drugs, and various other therapeutic segments. Cipla is expanding its presence not only in India but also in South Africa, North America, and other key emerging markets. Cipla operates 47 manufacturing facilities across the world. and produces over 50 different dosage forms and more than 1,500 high-quality products.
| Market Cap | ₹ 69,455 crore |
| Revenue | ₹ 21,623.4 crore |
| Net Income | ₹ 2,559.5 crore |
| 3-Year Sales CAGR | 9.97% |
| EPS | 32.7 per share |
| P/E Ratio | 26.1 |
| ROE | 13.2% |
| ROCE | 17.5% |
| No. of Employees | 25,000+ |
5. Torrent Pharmaceuticals
Torrent Pharma is a flagship company of the Torrent Group, and it is one of the prominent companies in the Indian pharma industry. Torrent Pharma has strategically structured its marketing section that focuses on specific therapeutic areas, such as cardiovascular (CV), central nervous system (CNS), gastrointestinal (GI), and women’s healthcare (WHC) segments. The company has a field force of over 3600 personnel to effectively cater to the need of approximately 170000 doctors across India. also, the company has 22 distribution centers that service approximately 59,000 retailers.
| Market Cap | ₹ 51,286 crore |
| Revenue | ₹ 8,508.04 crore |
| Net Income | ₹ 777.18 crore |
| 3-Year Sales CAGR | 3.5% |
| EPS | 24.6 per share |
| P/E Ratio | 41.5 |
| ROE | 18.3% |
| ROCE | 18.9% |
| No. of Employees | 13,900+ |
6. Zydus Lifesciences Limited
Formerly known as Cadila Healthcare, zydus life sciences is one of the leading pharma companies in India. the company is engaged in the discovery, development, manufacturing, and commercialization of a wide range of pharma products. company`s extensive product portfolio includes APIs, formulations, wellness products, and animal health products.
Zydus Lifesciences operates manufacturing facilities in Gujarat, Goa, Maharashtra, Sikkim, and Himachal Pradesh. Also, the company has international manufacturing facilities in Brazil and the United States to strengthen its global presence.
| Market Cap | ₹ 48,404 crore |
| Revenue | ₹ 15,265.2 crore |
| Net Income | ₹ 4,618.34 crore |
| 3-Year Sales CAGR | 5.06% |
| EPS | 20.3 per share |
| P/E Ratio | 23.3 |
| ROE | 14.7% |
| ROCE | 14.7% |
| No. of Employees | 12,000+ |
7. Abbott India Limited
Abbott India Limited is part of Abbott’s global pharmaceutical business, and it is one of the top pharma companies in India. Its headquarters is located in Mumbai. it has a subsidiary of Abbott Laboratories. The company provides high-quality and trusted medicines in various therapeutic categories, including women’s health, gastroenterology, cardiology, metabolic disorders, and primary care.
| Market Cap | ₹ 45,709 crore |
| Revenue | ₹ 4,919.27 crore |
| Net Income | ₹ 798.70 crore |
| 3-Year Sales CAGR | 10.2% |
| EPS | 437 per share |
| P/E Ratio | 49.2 |
| ROE | 29.5% |
| ROCE | 38.4% |
| No. of Employees | 3,600 + |
8. Alkem Laboratories
Alkem Laboratories is established in 1973. it is among India’s leading global pharmaceutical companies. The company develops, manufactures, and markets high-quality pharmaceutical products in all major therapeutic segments. the company serves it products and services in more than 40 countries. The US is the second largest market of the company after its home country, India. The other key markets include Australia, Chile, the Philippines, Kazakhstan, Europe, and East Africa.
| Market Cap | ₹ 38,250 crore |
| Revenue | ₹ 10,634.19 crore |
| Net Income | ₹ 1,680.32 crore |
| 3-Year Sales CAGR | 13.1% |
| EPS | 85.4 per share |
| P/E Ratio | 37.3 |
| ROE | 20.7% |
| ROCE | 18.6% |
| No. of Employees | 16,500+ |
9. Lupin
Lupin is a well-renowned pharma company in India that specializes in the development and manufacturing of both generic and branded formulations, biotechnology products, and APIs. The company’s wide range of product portfolio extends to various therapeutic areas, including cardiovascular diseases, asthma, diabetic management, pediatrics, central nervous system disorders, gastrointestinal ailments, anti-infectives, nonsteroidal anti-inflammatory drugs (NSAIDs), anti-tuberculosis medications, and cephalosporins. The company has a strong global presence. along with its subsidiaries, operates manufacturing facilities in India, the United States, Mexico, and Brazil.
| Market Cap | ₹ 29,999 crore |
| Revenue | ₹ 10,634.19 crore |
| Net Income | ₹ 1,680.32 crore |
| 3-Year Sales CAGR | 3.81% |
| EPS | (₹ 7.13) per share |
| ROE | (11.8%) |
| ROCE | (71.6%) |
| No. of Employees | 500+ |
10. Aurobindo Pharma
Aurobindo Pharma is India`s leading pharmaceutical company that is primarily involved in the manufacturing and marketing of APIs, generic pharmaceuticals, and associated services. company’s wide range of product portfolio includes various therapeutic and product categories, including antibiotics, anti-retroviral medications, systemic gastroenterological drugs, central nervous system treatments, cardiovascular medicines, anti-allergies, anti-diabetic drugs, and other therapeutic areas.
In addition to the company`s main product portfolio, it also produces novel proprietary biocatalysts, vitamins, minerals, dietary supplements, sports nutrition products, functional foods, weight loss products, and fermentation-based semi-synthetic products. Aurobindo Pharma operates manufacturing facilities in India, Brazil, Portugal, and the United States, showcasing its global reach.
| Market Cap | ₹ 28,072 crore |
| Revenue | ₹ 23,455.49 crore |
| Net Income | ₹ 2,647.11 crore |
| 3-Year Sales CAGR | 60.23% |
| EPS | 34.1 per share |
| P/E Ratio | 13.0 |
| ROE | 11.7% |
| ROCE | 12.9% |
| No. of Employees | 31,000+ |
Final Thoughts
The Indian pharma industry is growing day by day. the global pharma industry is keenly watching India’s growth. As per experts’ and top brokers’ opinions, the Indian pharma industry is going to do much better in the coming years. Investing in pharma stocks for the long term is the best option to create long-term wealth. this is not a stock recommendation. do your own research or contact your financial advisor before you invest in any above-mentioned companies.
Happy Investing