Pharma stocks: Brokerage firm Motilal Oswal Wealth Management wrote in a note that India’s pharma industry is likely to grow at the rate of 9% to 11% in fiscal year 2026. This information has been given on the basis of a report by CRISIL. This growth will be driven by rising prices in the domestic market and increased export demand from new launches and regulated markets. The government has also launched a PLI scheme for the pharma industry to promote Make-in-India. Under this scheme, about 18% to 20% of imported medicines can now be produced in India.
For the hospital business, Motilal Oswal Wealth said it expects profitability to improve due to increase in bed count, increase in occupancy and improvement in realisation. If you want to invest money in the shares of better companies of the pharma sector in the new year i.e. 2025, then here the brokerage has suggested 5 stocks for you.
The stock is succeeding in maintaining better growth rates in its Rx-prescription business than the industry. The company has a unique and focused product portfolio, which gives it a competitive edge. Along with this, the company also has a strong hold in chronic therapy. The brokerage expects a rise of about 10% in Mankind Pharma shares. A price target of ₹ 3,140 has been given for this.
Max Healthcare’s brownfield, greenfield and inorganic expansion strategies are expected to drive rapid revenue growth. This strategy will help in achieving EBITDA break-even faster for new beds (hospital beds), thereby providing greater benefits of operating leverage. Motilal Oswal expects a potential upside of 21% for Max Healthcare with a price target of ₹1380.
This drug manufacturing company has started showing improvement in its earnings. The company has included special products in the American generic segment. Along with this, the company is benefiting from domestic formulation business and product launches in Europe and other developing markets. Motilal Oswal does not see much upside in Lupine as it has kept a target price of ₹2210 on the stock. However, it should be noted that the stock has returned 66% so far in 2024.
The company is working on multiple fronts to maintain its strong earnings momentum over the next two to three years. The company expects a boost in earnings from the relaunch of products in the US market. Along with this, it is also expected that there will be benefit from new product launch. Motilal Oswal has estimated a potential upside of 23 percent in this stock with a target price of ₹1930.
MOSL Wealth believes Piramal Pharma is well positioned to benefit from its differentiated capabilities due to increased inquiries on the CDMO front at the industry level. The brokerage expects Piramal Pharma’s net profit to rise to ₹700 crore in FY2026 from ₹56 crore in FY2024. Motilal Oswal expects 20% potential upside for Piramal Pharma with a target of ₹310.
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