Synopsis:
India’s pharmaceutical sector is showing resilience, with companies like Pfizer Ltd, Sun Pharmaceutical Industries Ltd, Ipca Laboratories Ltd, and Torrent Pharmaceuticals Ltd reporting high Piotroski scores of 9, showing strong financials, good efficiency, and steady growth, which makes them attractive for investors.
Pharma stocks with high Piotroski scores are financially strong and well-managed companies. The score looks at profitability, debt, cash flow, and efficiency to identify stocks that are healthy and likely to grow. In the pharmaceutical sector, high-scoring companies often have steady earnings and good balance sheets, making them attractive to investors.
What is the Piotroski Score and why is it important?
The Piotroski Score (also known as the Piotroski F-Score) is a financial strength indicator developed by Stanford University professor Joseph Piotroski. It rates companies on a scale of 0 to 9, based on nine accounting-related factors.
These criteria are divided into three groups: profitability, leverage/liquidity, and operational efficiency. A higher score, usually between 7 and 9, indicates strong fundamentals, whereas a lower score of 0 to 3 indicates financial weakness.
Investors can use the Piotroski Score to distinguish between high-quality companies and low-quality ones. In defence, this is especially important because these companies rely on long-term contracts, require a strong financial foundation, and must operate efficiently in order to grow consistently.
Below are list of Pharma stock with high piotroski score
1. Pfizer Ltd
Pfizer Limited, incorporated in 1950 and based in Mumbai, manufactures, markets, and distributes pharmaceutical products in India and internationally. Its portfolio spans multiple therapeutic areas, including neuro/CNS, hormones, cardiovascular, haemophilia, anti-infectives, oncology, orthopedics, gynecology, urology, respiratory, gastrointestinal, vaccines, pain management, and nutritional products. The company also provides anti-infective services to hospitals and nursing homes, selling products through independent distributors.
Pfizer Ltd has a market value of Rs. xxx crore and is closed at Rs. xxx on Tuesday. The company’s P/E stands at xxx, which is lower than the industry P/E of xxx. The ROCE of 21.6 percent, and ROE of 16.4 percent, indicates the company’s strong financial position.
Pfizer Ltd has a piotroski score of 9, and in Q1FY26, the company reported revenue of Rs. 603 crore, an increase of 7.10 percent year over year from Rs. 563 crore in Q1FY25. The Net profit also increased by 27.15 percent from Rs. 151 crore in Q1FY25 to Rs. 192 crore in Q1FY26.
2. Sun Pharmaceutical Industries Ltd
Sun Pharmaceutical Industries Limited, established in 1983 and based in Mumbai, is an international pharmaceutical company engaged in the development, manufacturing, and marketing of branded and generic drugs, active pharmaceutical ingredients (APIs), and over-the-counter products.
Its portfolio spans multiple therapeutic areas such as cardiology, dermatology, oncology, and neurology. The company offers tablets, capsules, injectables, inhalers, creams, and specialty medications, and exports its products to approximately 90 countries across Asia, North America, Europe, Africa, South America, and Australia.
Sun Pharmaceutical Industries Ltd has a market value of Rs. xxx crore and is closed at Rs. xxx on Tuesday. The company’s P/E stands at xxx, which is lower than the industry P/E of xxx. The ROCE of 20.20 percent, ROE of 16.90 percent, highlights the company’s financial position.
Sun Pharmaceutical Industries Ltd has a piotroski score of 9, and its revenue for Q1FY26 was Rs. 13,851 crore, increased by 9.47 percent as compared to 12,653 crore in Q1FY25. Whereas, net profit declined by 19.85 percent from Rs. 2,861 crore in Q1FY25 to Rs. 2,293 crore in Q1FY26.
3. Ipca Laboratories Ltd
Ipca Laboratories Limited, incorporated in 1949 and based in Mumbai, is an integrated pharmaceutical company that manufactures and markets formulations and active pharmaceutical ingredients (APIs) across India and international markets, including Europe, Africa, the Americas, Asia, CIS, and Australasia.
Its offerings cover a wide range of therapeutic areas such as cardiology, diabetes, oncology, neurology, dermatology, infectious diseases, gastroenterology, respiratory, urology, and more, including both generic and branded formulations, APIs, and nutraceuticals.
Ipca Laboratories Ltd has a market value of Rs. xxx crore and is closed at Rs. xxx on Tuesday. The company’s P/E stands at xxx, which is lower than the industry P/E of xxx. With ROE of 12.8 percent, ROCE of 14.7 percent and debt to equity ratio of 0.20, highlights the company’s financial position.
Ipca Laboratories Ltd has a piotroski score of 9, and its revenue for Q1 FY26 was Rs. 2,309 crore, increased by 10.32 percent as compared to 2,093 crore in Q1 FY25. Whereas, net profit declined by 17.09 percent from Rs. 199 crore in Q1FY25 to Rs. 233 crore in Q1FY26.
4. Torrent Pharmaceuticals Ltd
Torrent Pharmaceuticals Limited, founded in 1959 and based in Ahmedabad, is a global pharmaceutical company that researches, develops, manufactures, and markets branded and generic formulations in India, the US, Brazil, Germany, and other international markets. Its portfolio spans therapeutic areas such as anti-diabetic, cardiovascular, oncology, urology, gynecology, neuro-psychiatric, gastro-intestinal, pain management, and cosmo-dermatology. The company also provides contract manufacturing services and markets products under brands like Tedibar, Shelcal, Unienzyme, and Ahaglow. It is a subsidiary of Torrent Investments Limited.
Torrent Pharmaceuticals Ltd has a market value of Rs. xxx crore and is closed at Rs. xxx on Tuesday. The company’s P/E stands at xxx, which is lower than the industry P/E of xxx. It has an ROE of 26.5 percent, ROCE of 27, indicating the company’s financial position.
Torrent Pharmaceuticals Ltd has a piotroski score of 9, and its revenue for Q1 FY26 was Rs. 3,178 crore, increased by 11.16 percent as compared to 2,859 crore in Q1 FY25. Net profit rose by 19.91 percent from Rs. 457 crore in Q1FY25 to Rs. 548 crore in Q1FY26.
Written by Akshay Sanghavi
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