Globally, India has the lowest manufacturing costs in the pharma sector. This ability to manufacture high quality and low-priced medicines, presents a huge business opportunity for the domestic industry.
India's cost of production is approximately 33% lower than that of the US.
Over the years, domestic pharma manufacturers have experienced a significant increase in R&D spending to be competitive in the world market.
The Covid-19 pandemic may as well turn out to be a blessing in disguise for pharma companies as it pushed them to expedite focus on various pharma segments.
Further, pharma companies' efforts have been supplemented by the government's production-linked incentive (PLI) scheme.
All of this puts the top pharma companies in India in a sweet spot.
However, the opportunities are not just limited to the big pharma companies. Even their smaller counterparts can make a breakthrough and get recognized.
If the smaller companies do have a major impact in the future, the pharma sector penny stocks could turn into future bluechips.
Here are some of the pharma sector penny stocks to add to your watchlist.
These companies could become the best pharma stocks in India.
Since pharma stocks interest you, check out our list of pharma stocks which has Indian pharma stocks and MNC pharma stocks.
You can also checkout our playlist on Pharma Stocks on Equitymaster's YouTube channel.
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Based on marketcap, these are the top pharma companies in India:
You can see the full list of pharmaceuticals stocks here.
And for a fundamental analysis of the above companies, check out Equitymaster’s Indian stock screener which has a separate screen for top pharma companies in India .
Within the Pharmaceuticals sector, the top gainers were ASPIRA PATHLAB & DIAGNOSTICS (up 11.7%) and VANTA BIOSCIENCE (up 10.8%). On the other hand, ADESHWAR MEDITEX (down 15.0%) and MURAE ORGANISOR LTD. - (RIGHTS ENTITLEMENTS (RES)) (down 12.5%) were among the top losers.
For more, please check out our pharma sector report.
The details of listed pharma companies can be found on the NSE and BSE website.
For a more curated list, you can check out our list of pharma stocks which has Indian pharma stocks and MNC pharma stocks.
Are Bitter Days Over for Pharma Stocks?