These Pharma Stocks Offered Over 15% Returns In Last One Year
Searching for the next big investment opportunity?
Consider pharma funds!
From companies focused on generic drugs and over-the-counter medicines to those pioneering in vaccines and biologics, the breadth of this sector is vast and promising.
Did you know?
The Pharma industry is projected to soar to a whopping $130 billion value by 2030. Positioning your investments in this sector could be your ticket to impressive returns.
Dive in now and discover the top-performing pharma stocks from last year.
Word of Caution
Past results may not be a great indicator of future success, we caution investors to do their own research before investing in any of these stocks.
We have just listed down some of the high-performing pharma stocks in the last one year and so the same should NOT be considered as recommendations to buy. The list is meant for informational purposes only.
Top Pharma Stocks In India
- Sun Pharmaceutical Industries Ltd.
- Dr Reddy's Laboratories Ltd.
- Cipla Ltd.
- Apollo Hospitals
- Lupin
1. Sun Pharmaceutical Industries Ltd.
Sun Pharma is India's biggest drugmaker and has a market cap north of ₹2 lakh crore.
The presence of this company is top-notch, making it a reliable stock to invest in the long term as well. It's the 4th largest specialty generic pharmaceutical company in the entire world. The company is making a global revenue of a whopping $5 billion and counting.
There are a wide variety of patent-protected specialty medicines on Sun Pharmaceutical Industries Ltd.
Return On Investment
The company has delivered an ROE of 15.2% in the year ending 31 March 2023. It's much more than its 5-year average of 8.91%. This report was presented by Consolidated Financials.
Sun Pharmaceutical Industries Ltd. Share Price Returns
- 3 months - 15.17%
- 1 year - 26.91%
- 3 years - 100.99%
- 5 years - 79.81
Annual Revenue Growth
As per Consolidated Financials, the company has shown a CAGR of 12.49%. The growth can be seen when compared with a 3-year CAGR of 9.87%.
Disclaimer: The information shared in this stock is for informational purposes and does not constitute financial advice. Past stock performance is not indicative of future results, readers should exercise caution.
2. Dr Reddy's Laboratories Ltd.
This company is not the biggest name in the pharmaceutical industry just yet. But by looking at the trends, it may soon break into the top 5 pharma companies of India.
The biggest strength of Dr Reddy's Laboratories Ltd. is its API business (Active Pharma Ingredients). It also has various generics and branded generics along with biologics and OTC business. With a diversified portfolio that keeps on growing with time, Dr Reddy's Laboratories Ltd. is one of the best pharma stocks out there.
Return On Investment
The company has delivered a great return on investment in the year ending 31 March 2023 at 19.35%. It has outperformed its 5-year average of 14.06% in this past year.
Share Price Returns
- 3 months - 27.48%
- 1 year - 36.76%
- 3 years - 32.04%
- 5 years - 139.22%
Annual Revenue Growth
The CAGR of the company stood at 16.78% this past year. This is more than the 3-year average of 12.22%. It was reported by Consolidated Financials.
Disclaimer: The information shared in this stock is for informational purposes and does not constitute financial advice. Past stock performance is not indicative of future results, readers should exercise caution.
3. Cipla Ltd.
This is one of the most talked about names in the pharmaceutical business right now. Cipla Ltd. has emerged as the best pharma stock to buy in 2023.
The biggest strength of Cipla Ltd. is its diverse product offering. It is well known for its generic business in India. It has a huge impact on the generic medicine business which can be seen from the fact that it has contributed 19% of the domestic pharmaceutical revenues.
Currently, the share value of Cipla Ltd. is somewhere in the 1200-1300 range. You can be certain the business will grow shortly and bring more profits.
Share Price Returns
- 3 months - 29.17%
- 1 year - 20.39%
- 3 years - 64.16%
- 5 years - 89.56%
Stock Returns vs Nifty 100
As of the last trading session, the stock gave a 3-year return of 61.55%. It is marginally lower than Nifty 100 which gave a return of 63.92%.
Disclaimer: The information shared in this stock is for informational purposes and does not constitute financial advice. Past stock performance is not indicative of future results, readers should exercise caution.
4. Apollo Hospitals
Unlike the other names on this list, Apollo Hospitals is not a pharmaceutical company. It is India's first largest hospital chain. This hospital chain was started way back in 1983. It means that Apollo Hospitals has been in business for four decades now.
Its presence can be felt across the healthcare system. It includes hospitals, pharmacies, primary care and diagnostic clinics, among others. You can count on it as one of the best health or pharma stocks.
Employee & Interest Expense
The company has spent 2.29% of its operating revenue growth on interest expenses. It has also spent 12.9% towards employee costs in the year ending 31 Mar 2023 as per Consolidated Financials.
Share Price Returns
- 3 months - 6.41%
- 1 year - 16.37%
- 3 years - 195.16%
- 5 years - 318.29%
Stock Returns vs Nifty 100
The stock of Apollo Hospitals has given returns of 192.76% as compared to Nifty 100 which gave a return of 63.92%.
Disclaimer: The information shared in this stock is for informational purposes and does not constitute financial advice. Past stock performance is not indicative of future results, readers should exercise caution.
5. Lupin
With over 1000 products spread over 100 countries, it is safe to say that Lupin is a good pick for someone building a pharma stock portfolio. The company was established in 1968 and has evolved from humble beginnings to become a global healthcare leader.
The company is well known for its affordable and quality medicines. It uses state-of-the-art manufacturing facilities, an industry-best environment, and health and safety practices, with a strong emphasis on quality.
With over 20,000 members, the company continues to expand. In the last year, it has seen one of the best growth in pharma stocks in India.
Lupin Share Price Returns
- 3 months - 42.06%
- 1 year - 69.76%
- 3 years - 13.51%
- 5 years - 22.87%
If you analyze the growth patterns nicely, it can be seen that the last year has been a peak for Lupin. Although it has slowed down a bit in the last 3 months, it is still one of the best stocks with amazing growth in the last year!
Disclaimer: The information shared in this stock is for informational purposes and does not constitute financial advice. Past stock performance is not indicative of future results, readers should exercise caution.
Advantages Of Investing In Pharma Stocks
There are all kinds of stocks that you can invest in the marketplace. Then what's so special about pharma stocks? Let's look at the benefits of investing in these stocks:
1. High-Profit Margin
The profit margin in the pharma sector is generally very high. The products produced in this sector are not the wants of the people, they are rather the needs. This is the reason why these companies have a free cash flow. With regular dividend payments, the investors can also expect huge profits on the invested pharma stocks.
2. Growth & Value
Pharma stocks will not just lead to growth, they will also deliver value. Returns with stability is a deadly combination in stocks and the pharma industry has been able to deliver on both aspects. The number of diseases is increasing, and so is the demand for pharma products. With the increasing demand, the value of the stock will rise as well.
3. Diversification & Defensive
You can invest in all kinds of pharma stocks and diversify your portfolio. The best part is that economic conditions barely have an impact on this industry. If somebody is suffering from diabetes during a recession period, the patient will have to buy medicines even if he's unemployed. It means that pharma stocks are defensive.
Key Takeaways
The pharmaceutical sector, often regarded as a shield against market volatility, has showcased substantial resilience and promise in the recent year, particularly in delivering remarkable returns on specific stocks.
It's essential to understand that while some pharma stocks have stood out, a diversified portfolio is a cornerstone of stable and sustained growth. The principle is to balance your investment across multiple sectors, thereby reducing risks and maximizing potential.
Opportunities in the pharmaceutical world are dynamic. It's not just about identifying stocks that performed well last year, but also about being vigilant for the next big breakthrough or lucrative investment. Regular market research, understanding scientific advancements, and recognizing consumer health trends are pivotal.
The investment journey in the pharmaceutical industry, akin to the medical world, requires patience, research, and continuous learning. For those who feel overwhelmed or are just starting, consider reaching out to seasoned investors or utilizing digital platforms for insights and guidance.
If you're curious to delve deeper into:
- How to analyze the growth potential of pharma stocks?
- Strategies to maintain a diversified pharma-centric portfolio?
- How to predict future pharma market leaders?
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