India is the largest global supplier of generic drugs and he Indian pharmaceutical industry is growing rapidly, projected to reach $65 billion by 2024 and $130 billion by 2030. Growth is driven by increasing R&D investments, government initiatives, and rising domestic healthcare demand
Operating profit margin is a financial metric that measures the proportion of a company’s revenue that remains after paying for variable costs of production, such as wages and raw materials.
By evaluating operating profit margins, investors and analysts can gain insights into a company’s operational health and efficiency, guiding investment and management decisions reflecting a company’s efficiency in managing its core operations.
Listed below are some of the Pharmaceutical companies that have reported Operating Profit Margins of upto 30 percent.
Abbott India
Abbott India Limited is engaged in the pharmaceuticals business with a portfolio of offerings in diagnostics, medical devices, nutrition products, and branded generic medicines.
With a market capitalization of Rs. 55,574.79 Crores, the shares of Abbott India Limited closed at Rs. 26,153.70 per share, up 0.36 percent from its previous day’s close price of Rs. 26,059.90.
Abbott India Limited has delivered a return of 22 percent in a year and it has reported an Operating Profit Margin of 23 percent
Its revenue from operations grew by 7 percent from Rs. 1,343.08 Crores in Q4FY23 to Rs. 1,438.63 Crores in Q4FY24, accompanied by net profits of Rs. 231.42 Crores to Rs. 287.06 Crores.
Glenmark Lifesciences
Glenmark Life Sciences Limited is primarily engaged in the business of research, development, manufacture, and marketing of active pharmaceutical ingredients (API).
With a market capitalization of Rs. 10,268.39 Crores, the shares of Glenmark Lifesciences Limited closed at Rs. 838.05 per share, up 1.85 percent from its previous day’s close price of Rs. 822.80.
Glenmark Lifesciences Limited has delivered a return of 56 percent in a year and it has reported an Operating Profit Margin of 28 percent
Its revenue from operations decreased by 13.6 percent from Rs. 621.32 Crores in Q4FY23 to Rs. 536.6 Crores in Q4FY24, accompanied by net profits of Rs. 146.36 Crores to Rs. 97.94 Crores.
Ajanta Pharma
Ajanta Pharma is primarily engaged in the development, manufacturing, and marketing of specialty pharmaceutical quality finished dosages. It provides a comprehensive range of specialty branded generic products targeting a broad range of chronic and acute therapies
With a market capitalization of Rs. 30,501.81 Crores, the shares of Ajanta Pharma Limited closed at Rs. 2,422.40 per share, up 1.01 percent from its previous day’s close price of Rs. 2,398.25.
Ajanta Pharma Limited has delivered a return of 86 percent in a year and it has reported an Operating Profit Margin of 26.46 percent
Its revenue from operations grew by 19.50 percent from Rs. 882 Crores in Q4FY23 to Rs. 1,054 Crores in Q4FY24, accompanied by net profits of Rs. 122 Crores to Rs. 203 Crores.
Dr Reddy’s Laboratories
Dr. Reddy’s Laboratories Limited is a global pharmaceutical company engaged in the business of offering a wide range of products and services including active pharmaceutical ingredients, generics, biosimilars, and over-the-counter medicines.
With a market capitalization of Rs. 97,755 Crores, the shares of Dr Reddy’s Laboratories Limited closed at Rs. 5,860.25 per share, down 0.54 percent from its previous day’s close price of Rs. 5,892.25.
Dr. Reddy’s Laboratories Limited has delivered a return of 30 percent in a year and it has reported an Operating Profit Margin of 25.70 percent
Its revenue from operations grew by 12.48 percent from Rs. 6,296.8 Crores in Q4FY23 to Rs. 7,083 Crores in Q4FY24, accompanied by net profits of Rs. 906.1 Crores to Rs. 1,309.8 Crores.
CIPLA
Cipla Limited is engaged in developing, manufacturing, selling, and distributing generic or branded generic medicines, as well as Active Pharmaceutical Ingredients (API). It also has operations in consumer healthcare, Biosimilars, specialty business and many others.
With a market capitalization of Rs. 1,19,700.34 Crores, the shares of Cipla Limited closed at Rs. 1,482.55 per share, down 0.41 percent from its previous day’s close price of Rs. 1,488.65.
Cipla Limited has delivered a return of 59 percent in a year and it has reported an Operating Profit Margin of 22.12 percent
Its revenue from operations grew by 7.38 percent from Rs. 5,739 Crores in Q4FY23 to Rs. 6,163 Crores in Q4FY24, accompanied by net profits of Rs. 552 Crores to Rs. 932 Crores.
Sun Pharmaceutical Industries
Sun Pharmaceutical Industries Limited is one of the largest pharmaceutical companies in India and the fourth largest in the world, it is engaged in the business of manufacturing, developing, and marketing a wide range of branded and generic formulations and Active Pharma Ingredients.
With a market capitalization of Rs. 3,56,664.43 Crores, the shares of Sun Pharmaceutical Industries Limited closed at Rs. 1,486.55 per share, down 0.56 percent from its previous day’s close price of Rs. 1,494.95.
Sun Pharmaceutical Industries Limited has delivered a return of 56 percent in a year and it has reported an Operating Profit Margin of 22.86 percent
Its revenue from operations grew by 9.62 percent from Rs. 10,931 Crores in Q4FY23 to Rs. 11,983 Crores in Q4FY24, accompanied by net profits of Rs. 1,983 Crores to Rs. 2,659 Crores.
Written by: Bharath K.S
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