India’s pharmaceutical companies have seen their stock prices surge over the last 12 months, significantly outperforming the broader market.
According to data from ACE Equity, the Nifty Pharma index has jumped 58% over the past year compared to a 30% rise for the Nifty50 benchmark index. In fact, all 19 constituents of the pharma index have delivered positive returns to investors during this period.
The top gainer is Lupin, whose share price has skyrocketed 146% to Rs 1,618 now from Rs 659 a year ago. The pharma major has added Rs 73,722 crore to its market value over this period. So far in 2024, Lupin stock has risen 22%.
In the first nine months (April-December 2023) of financial year 2024, Lupin posted revenues of Rs 14,761 crore and net profit of Rs 1,567 crore.
Glenmark Pharmaceuticals takes the second spot with its stock price zooming 117% over the last 12 months to Rs 955 from Rs 439 earlier. The gains in 2024 are lower at 12% for Glenmark, which currently has a market capitalization of Rs 26,948 crore.
But, Glenmark incurred losses of Rs 457 crore in the first three quarters of FY24 amid gross sales of Rs 8,957 crore.
With a 113% annual return, Aurobindo Pharma ranks third amongst the outperforming pharma stocks. Its share price on 28 March 2024 stood at Rs 1,089, resulting in a market capitalization of Rs 63,835 crore. Year-to-date, the stock is up 1%.
Aurobindo’s gross sales in the April-December 2023 period totalled Rs 21,213 crore while net profit amounted to Rs 2,266 crore.
Next is Zydus Lifesciences, up 110% annually to a share price of Rs 1,014 and a market value of Rs 1.02 lakh crore on 28 March 2024.
In the nine months to December 2023, Zydus posted profit after tax of Rs 2,606 crore on gross sales of Rs 13,655 crore.
Natco Pharma’s share price has increased 74% over the past year and 18% year-to-date to current levels of Rs 954.4. That gives it a market capitalization of Rs 17,095 crore.
For the first three quarters of FY24, Natco registered gross sales of Rs 2,930 crore and net profit of Rs 1,002 crore.
Overall the cumulative gross sales of the 19 Nifty pharma stocks amounted to Rs 2.02 lakh crore in April-December 2023 while combined net profit totalled Rs 30,683 crore. This translates to year-on-year growth of 19% in sales and 29% in profits.
Among individual companies, Sun Pharma, Dr Reddy’s Laboratories and Cipla grown as the three most profitable pharma players in the nine months to December 2023. Their net profits for this period stood at Rs 6,982 crore, Rs 4,257 crore and Rs 3,221 crore respectively.
| Company | 1 Year Return | Market Cap (Rs cr) | 9M FY24 Sales (Rs cr) | 9M FY24 Profit (Rs cr) |
|---|---|---|---|---|
| Lupin | 146% | 73,722 | 14,761 | 1,567 |
| Glenmark | 117% | 26,948 | 8,957 | -457 |
| Aurobindo Pharma | 113% | 63,835 | 21,213 | 2,266 |
| Zydus Lifesciences | 110% | 1,02,000 | 13,655 | 2,606 |
| Natco Pharma | 74% | 17,095 | 2,930 | 1,002 |
India’s top pharmaceutical companies have rewarded their shareholders handsomely over the past year with strong share price gains that have significantly outpaced overall market returns.