The pharmaceutical sector stands out as one of the most resilient and growth-oriented industries, especially when compared to other sectors. While global economic conditions can create volatility in various industries, the pharma sector consistently demonstrates strong performance due to the constant demand for healthcare and medical products.
The global pharmaceutical market was valued at approximately $1.5 trillion in 2023 and is expected to grow at a compound annual growth rate (CAGR) of 6.3% from 2024 to 2030. This growth is driven by factors such as an aging population, increasing healthcare access in emerging markets, and ongoing advancements in biotechnology and personalized medicine.
Brokerage firm Motilal Oswal Wealth Management, in a note, stated that India’s pharma industry is likely to grow between 9% and 11% in the financial year 2026, citing a report by CRISIL. The growth will be driven by price hikes, new launches in the domestic market, and a rise in export demand from regulated markets.
Listed below are some of the pharma stocks to keep on your Radar :
Mankind Pharma Ltd
Mankind Pharma Ltd, one of India’s top pharmaceutical companies, has grown rapidly since its inception in 1995, establishing itself as a leader in the healthcare industry. With a strong focus on research and development, the company offers a diverse range of products, including branded formulations, generic medicines, and active pharmaceutical ingredients (APIs).Their portfolio includes widely recognized brands like Manforce, Prega News, and Acnes, which have gained significant market share.
As per Motilal Oswal, the stock continues to deliver a better growth rate compared to the industry in the Rx-prescription business, driven by a niche portfolio and superior execution in the chronic therapies space. Motilal Oswal has a potential upside of around 10 percent for Mankind Pharma, with a price target of Rs. 3,140.
With a market capitalization of Rs. 1,20,211 crores and a CMP of Rs. 2,873, the company’s revenue rose by 15 percent, from Rs. 2,768.08 crore to Rs. 3,185.94 crore in Q2 FY24-25. Meanwhile, net profit increased from Rs. 501.03 crore to Rs. 653.47 crore during the same period.
IPCA labs Ltd
IPCA Laboratories Ltd is a leading Indian pharmaceutical company that specializes in the development, manufacturing, and marketing of a wide range of high-quality medicines. Established in 1949, The company offers a diverse portfolio of products across various therapeutic areas, including anti-malarials, pain management, dermatology, cardiovascular, and diabetes care. IPCA is also known for its focus on active pharmaceutical ingredients (APIs) and its manufacturing expertise, which ensures compliance with global quality standards.
As per Motilal Oswal, the company is working on multiple fronts to maintain its strong earnings momentum over the next two to three years. This momentum is likely to be driven by relaunches of products in the US market, new offerings through its own as well as Unichem’s sites, outperforming the industry in Rest of World markets, and synergies with Unichem’s operations. Motilal Oswal projects a 23 percent potential upside for the stock, with a price target of Rs. 1,930.
With a market capitalization of 40,423 crores and a CMP of Rs. 1,638, the company’s revenue rose by 14 percent from Rs 2,072.51 crore to Rs 2,381.16 crore in Q2FY24-25. Meanwhile, Net profit inclined from Rs 145.06 crores to Rs 229.48 crore during the same period.
Max Healthcare Institute Ltd
Max Healthcare Institute Ltd is a leading healthcare provider in India, known for delivering world-class medical services across a broad spectrum of specialties. Established in 2001, Max Healthcare has built a strong reputation for offering comprehensive healthcare solutions through its network of hospitals, clinics, and diagnostic centers. The company operates a wide range of facilities, including multi-specialty hospitals focused on key areas such as oncology, cardiology, orthopedics, neurology, and emergency care.
As per Motilal Oswal, Max Healthcare’s combination of brownfield, greenfield, and inorganic expansion will drive strong revenue growth and pave the way for quicker breakeven on the Earnings Before Interest, Tax, Depreciation, and Amortisation (EBITDA) front for new beds, thus driving higher operating leverage benefits. Motilal Oswal has a 21 percent potential upside for Max Healthcare, with a price target of Rs. 1,380
With a market capitalization of 1,12,339 Crores and a CMP of Rs. 1,125, the company’s revenue rose by 24 percent from Rs 1,408.64 crore to Rs 1,748.3 crore in Q2FY24-25. Meanwhile, Net profit inclined from Rs 276.68 crores to Rs 281.81 crore during the same period.
Piramal Pharma Ltd
Piramal Pharma Ltd is a global pharmaceutical company based in India, offering a broad range of innovative healthcare solutions. Established in 1988, Piramal Pharma operates in the domains of drug discovery, development, and manufacturing. The company has a strong presence in both the domestic and international markets, delivering high-quality pharmaceutical products and services. Piramal Pharma specializes in providing services across two key business segments: Piramal Pharma Solutions (PPS) and Piramal Critical Care, which offers life-saving injectable medicines.
As per Motilal Oswal, it believes that Piramal Pharma is well poised to benefit from its differentiated capabilities and capacities due to the enhanced inquiries on the CDMO front at an industry level. It expects Piramal Pharma’s net profit to jump to Rs. 700 crore in the financial year 2026, from Rs. 56 crore in the financial year 2024. Motilal Oswal has a 20 percent potential upside for Piramal Pharma, with a price target of Rs 310.
With a market capitalization of 33,746 Crores and a CMP of Rs. 251.65, the company’s revenue rose by 17 percent from Rs 1,960.57 crore to Rs 2,302.86 crore in Q2FY24-25. Meanwhile, Net profit inclined from Rs 5.02 crores to Rs 22.59 crore during the same period.
Written by Sridhar J
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