Pharmaceutical stocks have experienced significant upward momentum, demonstrating substantial growth in both domestic and international markets. The Indian pharmaceutical market has become robust and vibrant, largely due to the success of “Made in India” medicines, which have contributed to some of the best-performing pharma stocks.
India holds a prominent position as a major producer of high-quality and affordable generic drugs. Globally, it supplies approximately 20% of the demand for pharmaceuticals in terms of volume. One of India’s key strengths in the pharmaceutical industry is its traditional ability to rapidly produce generic drugs cost-effectively.
Moreover, the NSE Pharma Index is presently trading at its peak, standing at approximately 16,400 levels today, marking a rise of about 1.4% from Friday’s closing levels. Notably, over the last month, it has surged impressively by over 10.5%, as indicated by a significant upward movement reflected by a prominent green bar on the charts.
In this article, our focus will be on exploring the top three pharma stocks in each category: Large, Mid, and Small-Cap stocks. These stocks have showcased exceptional performance in terms of returns over the past year. Additionally, we will compare their current prices with their all-time highs to gauge the actual strength and potential of these stocks.
Large Cap Pharma Stocks:
| Company Name | CMP Rs | M Cap Rs Cr | 1 M Return % | 1 Yr Return % | ATH Rs | % Down from ATH |
| Aurobindo Pharma | 1,037.30 | 60,779.41 | 1.89 | 132.30 | 1,063.90 | 2.50 |
| Lupin | 1,275.90 | 58,090.32 | 4.16 | 70.86 | 2,129.00 | 40.00 |
| Alkem Lab | 4,897.40 | 58,555.75 | 10.59 | 61.26 | 5,009.85 | 2.24 |
Aurobindo Pharma tops the list by generating an impressive 132% return in the last year, with a moderate return of 1.9% in the last month. Interestingly, it is trading at its all-time high price. Meanwhile, Lupin is the second-best performer but is trading at 40% down from its all-time high price. Alkem Lab is also looking strong as it is trading at its all-time high price and has showcased an impressive return of over 60% during the last year.
Mid-Cap Pharma Stocks:
| Company Name | CMP Rs | M Cap Rs Cr | 1 M Return % | 1 Yr Return % | ATH Rs | % Down from ATH |
| Glenmark Pharma | 825.10 | 23,281.66 | 6.19 | 97.22 | 1,262.90 | 34.75 |
| Ajanta Pharma | 1,883.30 | 23,713.88 | -1.24 | 59.88 | 2,067.40 | 9.00 |
| Suven Pharma | 689.10 | 17,542.08 | 20.47 | 45.00 | 718.10 | 4.00 |
Glenmark Pharma holds a top position in this category, having generated a remarkable 97% return in the past year, while it is still trading around 35% below its all-time high price. Meanwhile, Ajanta Pharma is trading just 9% down from its all-time high levels and has also generated around a 60% return during the same period. On the other hand, Suven Pharma is also looking strong, as it is just 4% below its all-time high levels and has generated a 45% return in the past year.
Small Cap Pharma Stocks:
| Company Name | CMP Rs | M Cap Rs Cr | 1 M Return % | 1 Yr Return % | ATH Rs | % Down from ATH |
| Jeena Sikho | 610.20 | 1,516.96 | -14.07 | 336.55 | 833.33 | 26.80 |
| Neuland Labs | 5,069.75 | 6,504.41 | -4.33 | 205.33 | 5,605.35 | 9.60 |
| Marksans Pharma | 162.75 | 7,375.24 | 15.61 | 167.35 | 172.00 | 5.40 |
Small-cap stocks have always been favorites for investors due to their capacity to generate returns more aggressively. However, the risk in this category is relatively high compared to other categories like Mid or Large Cap. Jeena Sikho holds the top position in this category, having generated a multibagger return of over 330% during the past year. It is currently trading nearly 27% below its all-time high levels.
Read: Risks and Rewards of Investing in Small-Cap Stocks
Similarly, Neuland Labs and Marksans Pharma have also generated impressive returns of 205% and 167% respectively over the past year. They are currently trading just below their all-time high levels, making them attractive options.
The pharma index is currently trading at its all-time levels, prompting investors to seek out stocks that are not only outperforming the index but also those trading close to their all-time high levels.
Disclaimer:This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
