• The Indian pharma sector is one of the biggest exporters of generic medicine worldwide.

• Indian pharmaceutical companies invest heavily in R&D and other technological innovations to develop effective drugs.

• Investors can consider investing in the popular pharma stocks in India for effective diversification and better returns.

Pharmaceuticals are among the most important products because they allow for treating illnesses and ensuring good health, resulting in constant demand. When it comes to pharmaceuticals, India is one of the most respected countries, as it is one of the biggest exporters of generic pharmaceuticals worldwide. India exports pharmaceuticals to more than 200 countries, meeting more than half of Africa’s generic medicine needs. After COVID-19, India has emerged as the biggest vaccine supplier, supplying 60% of the world’s vaccines and 70% of the vaccines to the WHO. The Indian pharmaceutical industry is maintaining its rapid growth and is expected to reach a revenue of US $13.16 billion, with a CAGR of 4.70%. The industry is expected to reach a staggering US $130 billion by the end of 2024.
 

With such immense growth in the pharmaceutical industry, pharma companies with their stocks listed on stock exchanges are witnessing capital appreciation. This blog will help you know about the trending pharma stocks in India that can help you diversify and earn better returns.

Pharma stocks are stocks of companies that manufacture and sell pharmaceuticals required for various treatments worldwide. One of the best features of pharmaceuticals is their constant demand, which helps pharmaceutical companies maintain or grow their production to earn better profits, increasing pharma companies' share price. Investing in pharma stocks in India can also help in effective diversification to help spread the risk across a steady and in-demand sector to mitigate the risk of losses.
 

Here is a low-price pharma shares list you can consider adding to your portfolio:

• Glenmark Life Sciences Ltd.

• Sanofi India Ltd.

• GlaxoSmithKline Pharmaceuticals Ltd.

• Suven Pharmaceuticals Ltd.

• Abbott India Ltd.

• Caplin Point Laboratories Ltd.

• Eris Lifesciences Ltd.

• Concord Biotech Ltd.

• Ajanta Pharma Ltd.

• J B Chemicals and Pharmaceuticals Ltd.

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Pharmaceutical companies contribute immensely to total domestic output and exports to foreign countries. You can identify popular pharma companies by analysing the below features, which are common among popular pharmaceutical companies in India:

• Research and development: Popular pharma companies in India invest heavily in R&R to develop new and effective pharmaceuticals. Such companies have advanced research facilities and constantly improve their existing drugs.

• Diversified range: Popular companies do not rely on one or two basic drugs but have an extensive range of pharmaceuticals. These products include common flus, specialised treatments, and life-saving medication.

• Market leadership: Pharma companies that perform better often have a significant global business through subsidiaries or by exporting medicines. They also hold a significant market share, either through an overall portfolio or a number of specialised drugs.

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Now that you know the low-price pharma shares list, you can consider these stocks for your investment. However, as you may have different investment goals and risk tolerance, it is important to consider the below investment tips before investing in pharma stocks in India:

• Evaluate the company's R&D pipeline: Assess the company’s drug pipelines to understand how many drugs it has in development. A company with a strong R&D pipeline is better positioned to launch new and effective drugs, which can increase its profits and result in a share price increase.

• Successful regulatory approvals: Every pharmaceutical company is required to seek regulatory approval before launching a medicine in India and worldwide. Look at the company’s history of regulatory approvals. If it has been regularly successful in getting approvals, it is a positive sign for better growth.

• Positive financial health: A company with positive financial health is more likely to see its share price increase after a successful earnings report. Hence, check financial metrics such as revenue growth, profitability, and cash flow and ensure they are positive.

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The Indian economy is immensely backed by the revenue generated by Indian pharmaceutical companies that meet a majority of the demand worldwide. As an investor, it is important to understand the future growth prospects by considering the following factors included in the future outlook for pharma stocks:

• R&D innovation: The pharmaceutical sector and its companies are utilising ongoing advancements to drive innovation in drug discovery and development. In the future, innovation is likely to improve, which will result in pharma companies' share price increases.

• Growth in digital healthcare: New healthcare startups are launching operations to complement traditional physical healthcare, increasing overall demand. Such new platforms and healthcare apps can partner with leading pharmaceutical companies for a better business approach, positively affecting pharmaceutical stocks.

• Ageing population: A majority of the worldwide population is ageing and is expected to drive demand for pharmaceuticals, especially in areas such as oncology, cardiology, and neurology. Companies focused on selling drugs for age-related treatments may see significant growth.

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Conclusion

The Indian pharmaceutical sector is considered one of the most important worldwide, as it meets a majority of the generic drug demand. The Indian pharma sector saw a massive boost in its growth as it developed and distributed COVID-19 vaccines around the world along with other healthcare accessories. Pharma companies in India are witnessing improved growth in their revenues and profits, making their stocks an ideal investment for investors looking to diversify and earn better returns. However, as the sector may see volatility, it is important to consider the investment tips and invest after extensive research before investing in pharma stocks.
 

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