Best Long Term Pharma Stocks

The strongest performers include Mankind Pharma Ltd with a 20.91% return, followed by Torrent Pharmaceuticals Ltd with a 7.94% return. Despite some market fluctuations, stocks like Sun Pharmaceutical Industries Ltd and Cipla Ltd continue to dominate with substantial market caps.             

The table below shows the best long-term pharma stocks based on market cap and 6-month returns.

What is Long Term Stock?

Long-term stocks are investments in companies with the intention of holding them for several years to benefit from the company’s growth and potential for higher returns over time. These stocks are typically considered lower risk compared to short-term investments, as they allow more time for a company to increase in value.

What is Pharma Stock?

Pharma stocks refer to the shares of companies involved in the development, production, and distribution of pharmaceutical products. These companies may specialize in creating prescription drugs, over-the-counter medications, vaccines, or biotechnology products. Investing in pharma stocks offers opportunities to profit from the growth and innovation within the healthcare sector.

Features Of Long Term Pharma Stocks

The key features of long-term pharma stocks lie in their stability and long-term growth potential. These stocks benefit from consistent demand for medical products and healthcare advancements, providing opportunities for investors to earn returns over extended periods.

1. Steady Demand for Products: Pharma companies experience consistent demand for medications, vaccines, and healthcare solutions, which makes them attractive for long-term investments. This steady market demand helps provide stability to investors over time.
2. Research & Development Driven Growth: Pharma stocks thrive on innovation and breakthroughs in drug development. Companies that invest in R&D can create new treatments, thus enhancing their long-term growth prospects and stock value.
3. Patents and Exclusivity: Patents provide pharma companies with exclusivity on drugs, creating a competitive edge and ensuring higher profitability. This feature supports long-term stock performance, as companies can maintain market dominance until patents expire.
4. Regulatory Environment: Pharma companies must adhere to stringent regulations, which can sometimes delay product launches. However, strong compliance and approvals from regulatory bodies ensure the long-term sustainability of the companies within the sector.
5. Resilience During Economic Downturns: The pharmaceutical sector is considered recession-resistant. Even during economic slowdowns, people continue to require medical treatments, making pharma stocks a safe long-term investment during uncertain times.

Best Pharma Stocks For Long-term

The table below shows the best pharma stocks for the long term based on a 5-year average net profit margin.

Top Long Term Pharma Stocks

The table below shows the top long term pharma stocks based on 1-year return.

Pharma Penny Stocks India

The table below shows the pharma penny stocks in India.

How To Invest In Long Term Pharma Stocks?

Investing in long-term pharma stocks involves selecting well-established pharmaceutical companies with strong growth potential and stability. Research is key, and investors should focus on those with a track record of innovation and market leadership.

1. Research & Due Diligence: Analyze the pharmaceutical company’s financial performance, R&D investments, and market position. A company with strong fundamentals, innovative products, and a history of success is ideal for long-term investment.
2. Diversify Your Portfolio: Diversification is crucial when investing in pharma stocks. By spreading investments across various pharmaceutical companies, you reduce risk while gaining exposure to different growth opportunities within the sector.
3. Monitor Regulatory Approvals: Keep an eye on drug approvals and clinical trial results, as these can significantly impact a pharma company’s stock. Positive regulatory outcomes often lead to growth, making it an essential factor for long-term investors.
4. Choose Reliable Stock Brokers: Use a reliable stock broker like Alice Blue for seamless trading of pharma stocks. A trusted broker will provide the tools and resources you need to track stocks, execute trades, and manage investments efficiently.
5. Long-Term Commitment: Patience is vital in long-term stock investing. While short-term fluctuations may occur, pharma stocks have the potential for sustained growth over time, especially with companies focused on expanding their product pipelines and global reach.

Advantages Of Investing In Long Term Pharma Stocks?

The main advantages of investing in long-term pharma stocks lie in their potential for growth driven by the constant demand for healthcare products and innovation. These stocks offer stability, income, and opportunities for long-term capital appreciation due to the ongoing needs in the pharmaceutical sector.

1. Steady Demand: Pharma companies benefit from consistent demand for healthcare products, including medicines and vaccines. As populations grow and age, the need for medical treatments and pharmaceuticals remains strong, providing a stable growth opportunity for investors.
2. Innovation Potential: The pharmaceutical industry thrives on innovation, with companies frequently releasing new drugs or treatments. Investing in firms with a solid pipeline of products offers the chance for significant capital appreciation when new treatments receive regulatory approval.
3. Economic Resilience: The healthcare sector, especially pharmaceuticals, tends to be less affected by economic downturns. People need healthcare regardless of economic conditions, making pharma stocks relatively resilient during market volatility, providing stability for long-term investors.
4. Dividend Yields: Many established pharmaceutical companies offer attractive dividends, providing income to investors. Reinvesting these dividends can further enhance long-term returns, making pharma stocks a reliable option for those seeking regular income alongside capital appreciation.
5. Global Market Reach: Pharma companies often have a global presence, selling products worldwide. Their international reach ensures growth opportunities across diverse markets, helping investors benefit from global demand for medicines, particularly in emerging markets where healthcare needs are expanding.

Risks Of Investing In Long Term Pharma Stocks?

The main risk of investing in long-term pharma stocks is the inherent uncertainty surrounding regulatory approvals, competition, and patent expirations. These factors can lead to volatility and potentially significant losses if a company’s product fails to meet expectations.

1. Regulatory Approval Delays: Pharmaceutical companies rely heavily on regulatory agencies like the FDA for drug approvals. Delays or rejections of new treatments can impact revenue streams and stock prices, creating uncertainty for investors who are counting on successful product launches.
2. Patent Expiry: When patents on key drugs expire, generic versions often enter the market, reducing sales and profits for the original manufacturer. This can significantly affect the long-term growth potential of pharma stocks, especially if no new products replace the revenue loss.
3. Competitive Pressures: The pharmaceutical industry is highly competitive, with numerous companies vying for market share. New entrants or advancements in technology from rivals can erode the market position of established companies, affecting their profitability and stock performance.
4. Legal Liabilities: Pharma companies can face lawsuits related to product safety or adverse side effects. Legal battles and settlements can cause substantial financial strain, damaging investor confidence and leading to stock price declines.
5. Research & Development Risks: Pharma companies invest heavily in R&D to develop new drugs, but there is no guarantee of success. Failed clinical trials or ineffective treatments can result in significant financial losses and tarnish the company’s reputation.

Introduction to Best Pharma Stocks In India For Long-term

Sun Pharmaceutical Industries Ltd

Sun Pharmaceutical Industries Limited, an Indian-based pharmaceutical company specializing in generic medications, is involved in the manufacturing, development, and marketing of a diverse range of branded and generic pharmaceutical formulations and active ingredients. 

The company offers a broad portfolio of generic and specialty medicines tailored for various chronic and acute medical conditions. With a vertically integrated network, Sun Pharma is capable of producing a wide array of pharmaceutical products, including oncology drugs, hormones, peptides, and steroidal medications.  

• Close Price ( ₹ ): 1739.10
• Market Cap ( Cr ): 417268.34
• 1Y Return %: 26.78
• 6M Return %: 2.20
• 1M Return %: -6.88
• 5Y CAGR %: 31.51
• % Away From 52W High: 12.72
• 5Y Avg Net Profit Margin %: 13.23 

Cipla Ltd

Cipla Limited, headquartered in India, is a pharmaceutical company primarily involved in the development, manufacturing, and distribution of generic and branded medications through its two operating segments: Pharmaceuticals and New ventures. The Pharmaceuticals segment focuses on producing and selling generic or branded generic drugs, as well as Active Pharmaceutical Ingredients (API). 

The New ventures segment encompasses consumer healthcare, Biosimilars, and specialty products. Cipla’s product portfolio includes a range of medications such as complex generics for respiratory, anti-retroviral, urology, cardiology, anti-infective, and central nervous system (CNS) conditions. The company’s operations span India, the United States, South Africa, and other global regions.  

• Close Price ( ₹ ): 1457.45
• Market Cap ( Cr ): 117705.71
• 1Y Return %: 10.66
• 6M Return %: -4.67
• 1M Return %: -5.39
• 5Y CAGR %: 26.44
• % Away From 52W High: 16.78
• 5Y Avg Net Profit Margin %: 12.05 

Torrent Pharmaceuticals Ltd

Torrent Pharmaceuticals Limited is an Indian pharmaceutical company that specializes in a range of therapeutic areas, including cardiovascular health, central nervous system disorders, gastrointestinal conditions, vitamins and minerals, diabetes management, pain relief, women’s health, and dermatology. 

The company is involved in all aspects of the pharmaceutical industry, from research and development to manufacturing, marketing, and distribution of both branded and generic medications in India and globally. Some of its popular pediatric products are Tedibar, Atogla, Spoo, and B4 Nappi, while its acne and face care offerings include Clinmiskin, ACNEMOIST, TRACNILO, and Fash.  

• Close Price ( ₹ ): 3358.25
• Market Cap ( Cr ): 113658.44
• 1Y Return %: 35.79
• 6M Return %: 7.94
• 1M Return %: -1.80
• 5Y CAGR %: 28.24
• % Away From 52W High: 6.92
• 5Y Avg Net Profit Margin %: 13.06 

Mankind Pharma Ltd

Mankind Pharma Limited is an Indian pharmaceutical company that is involved in the development, production, and promotion of a wide range of pharmaceutical products across various acute and chronic health conditions, as well as consumer healthcare items. 

The company offers a variety of formulations in therapeutic categories like anti-infectives, cardiovascular, gastrointestinal, vitamins/minerals/nutrients, respiratory, anti-diabetic, dermatology, gynecology, and pain relief, among others. In addition to these, it also operates in fields such as urology, ophthalmology, antiparasitic, stomatology, antineoplastic/ immunomodulator, antiviral, sexual health, anti-tuberculosis, parenteral, and vaccine segments.  

• Close Price ( ₹ ): 2485.40
• Market Cap ( Cr ): 102539.38
• 1Y Return %: 21.1
• 6M Return %: 20.91
• 1M Return %: -14.01 
• % Away From 52W High: 22.91
• 5Y Avg Net Profit Margin %: 17.47 

Dr Reddy’s Laboratories Ltd

Dr. Reddy’s Laboratories Limited is a pharmaceutical company headquartered in India with a global presence. The company provides a range of products and services, which include active pharmaceutical ingredients (APIs), generics, branded generics, biosimilars, and over-the-counter (OTC) medications. 

Its key focus areas in terms of therapeutic treatment include gastrointestinal, cardiovascular, diabetology, oncology, pain management, and dermatology. The company is divided into segments, namely Pharmaceutical Services and Active Ingredients, Global Generics, and Others. The Pharmaceutical Services and Active Ingredients segment primarily deals with the manufacturing and marketing of APIs and intermediates.  

• Close Price ( ₹ ): 1194.50
• Market Cap ( Cr ): 99516.3
• 1Y Return %: 2.25
• 6M Return %: -12.22
• 1M Return %: -15.01
• 5Y CAGR %: 13.61
• % Away From 52W High: 19.00
• 5Y Avg Net Profit Margin %: 13.57 

Zydus Lifesciences Ltd

Zydus Lifesciences Ltd. is an Indian company that focuses on life sciences. The company is involved in various activities such as research, development, manufacturing, marketing, and selling of a range of products. 

This includes finished dosage human formulations like generics and specialty formulations, as well as biosimilars and vaccines, active pharmaceutical ingredients (APIs), animal healthcare products, and consumer wellness products. 

• Close Price ( ₹ ): 953.45
• Market Cap ( Cr ): 95939.38
• 1Y Return %: 26.13
• 6M Return %: -21.81
• 1M Return %: -4.55
• 5Y CAGR %: 28.86
• % Away From 52W High: 38.90
• 5Y Avg Net Profit Margin %: 15.8 

Lupin Ltd

Lupin Limited, an India-based pharmaceutical company, focuses on producing, developing, and marketing a wide range of branded and generic formulations, biotechnology products, and active pharmaceutical ingredients (APIs) on a global scale

The company operates in various therapeutic segments such as Cardiovascular, Diabetology, Asthma, Pediatrics, Central Nervous System, Gastro-Intestinal, Anti-Infectives, Nonsteroidal Anti Inflammatory Drug therapy, Anti-TB, and Cephalosporins. With manufacturing facilities in India, the United States, Mexico, and Brazil, along with global trading activities, Lupin Limited and its subsidiaries cater to a diverse market. 

• Close Price ( ₹ ): 2064.40
• Market Cap ( Cr ): 94185.06
• 1Y Return %: 40.61
• 6M Return %: 10.84
• 1M Return %: -7.17
• 5Y CAGR %: 23.17
• % Away From 52W High: 16.40
• 5Y Avg Net Profit Margin %: 1.83 

Aurobindo Pharma Ltd

Aurobindo Pharma Limited is an Indian pharmaceutical company that specializes in manufacturing and marketing various pharmaceutical products and services. The company’s product range covers seven therapeutic areas including Central Nervous System, Antiretrovirals, Cardiovascular, Oral and Sterile products, Anti-infectives, Anti-diabetics, and Oral Cephalosporins. 

Aurobindo Pharma is also developing oncology and hormonal products, as well as topical and transdermal products in dermatology. They are working on three depot injections using advanced technology platforms. The company sells its products in around 150 countries globally and has subsidiaries such as APL Healthcare Limited, Auronext Pharma Private Limited, Auro Peptides Limited, and APL Pharma Thai Limited.

• Close Price ( ₹ ): 1183.15
• Market Cap ( Cr ): 68717.54
• 1Y Return %: 2.34
• 6M Return %: -15.46
• 1M Return %: -9.12
• 5Y CAGR %: 19.76
• % Away From 52W High: 34.56
• 5Y Avg Net Profit Margin %: 12.1 

Alkem Laboratories Ltd

Alkem Laboratories Limited is an Indian company that operates globally in the pharmaceutical industry. The company is involved in the research, production, and distribution of pharmaceutical and nutritional products across a range of therapeutic areas such as Anti Infective, Dermatology, Diabetology, Cardiology, and more. 

Alkem offers a variety of products including prescription medications, generic drugs, and over-the-counter products under brands like Clavam, Pan, and Taxim. The company has a presence in 40 countries and operates through its Pharmaceuticals segment with around 800 brands. Alkem has 21 manufacturing facilities in India and the United States.

• Close Price ( ₹ ): 5050.40
• Market Cap ( Cr ): 60385.11
• 1Y Return %: 2.1
• 6M Return %: -3.37
• 1M Return %: -9.08
• 5Y CAGR %: 17.08
• % Away From 52W High: 27.51
• 5Y Avg Net Profit Margin %: 13.63 

Abbott India Ltd

Abbott India Limited is an Indian company operating in the pharmaceutical industry. The company offers a range of products in diagnostics, medical devices, nutrition, and generic medicines. Their product portfolio covers various therapeutic areas including women’s health, gastroenterology, central nervous system, metabolic disorders, and vaccines. 

Some of their popular products include Colospa for irritable bowel syndrome, Ganaton for gastrointestinal issues, Librax for irritable bowel syndrome, Zolfresh for insomnia, and Thyronorm for hypothyroidism, among others. Additionally, the company provides well-known brands like Similac, PediaSure, and Ensure in the market.

• Close Price ( ₹ ): 26129.40
• Market Cap ( Cr ): 55523.15
• 1Y Return %: 2.43
• 6M Return %: -7.24
• 1M Return %: -12.51
• 5Y CAGR %: 15.86
• % Away From 52W High: 17.37
• 5Y Avg Net Profit Margin %: 16.5 

Long Term Pharma Stocks – FAQs

We hope you’re clear on the topic, but there’s more to explore in stocks, commodities, mutual funds, and related areas. Here are important topics to learn about.

Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time The securities quoted are exemplary and are not recommendatory.