India’s Pharmaceutical Sector Analyzed by HDFC Securities
Key Points
- India’s CRDMO market is growing fast.
- It’s expected to reach $15 billion by 2029.
- Growth rate: 13.4% CAGR (2024-2029E) – fastest in APAC.
- HDFC Securities recommends ‘Buy’ for Divi’s, Sai Life, Piramal.
- ‘Add’ for Anthem BioSciences, ‘Reduce’ for Laurus Labs.
- Target prices set for each company mentioned.
HDFC Securities is looking ahead at India’s pharmaceutical industry and thinks it will grow a lot. They’ve started to study some specific companies: Divi’s Laboratories, Sai Life Sciences, Piramal Pharma, Anthem BioSciences, and Laurus Labs. These companies do important work, like helping other companies make medicines.
The main reason for this good outlook is that India is becoming a leader in a special area called CRDMOs. CRDMOs help design, create, and make medicines. Experts believe India’s CRDMO market is going to grow much faster than other places in Asia and the Pacific (APAC) region. It’s expected to grow by 13.4% each year for the next six years, which is much faster than the average growth in the rest of APAC.
HDFC Securities has given some companies a “Buy” rating, meaning they think these companies will do well. They’ve given “Add” ratings to others, and a “Reduce” rating to one. They’ve also set price goals for each company – like how much they think the stock will be worth.
These Indian CRDMOs have been working hard for the last ten years to improve their abilities. They’re now ready to take advantage of new opportunities. This is happening because they can offer many different services throughout the entire process of making a medicine – from starting the research to selling it.
They are also improving how they make medicines using things like new techniques (like flow chemistry and green chemistry) and working with new types of medicines like those made from DNA or RNA.
Because India has lower costs for labor and materials, it’s a good place for companies to make medicines. This is especially helpful now that other countries are having trouble with costs and regulations. Also, many companies are moving their operations to India, which is good news for Indian CRDMOs.
Even though the global market might be a little difficult right now, HDFC Securities still thinks India’s pharmaceutical industry will grow in the long run. This is because more medicines are being tested, companies are spending money on research, and companies are trying to save money.
“The mid-to-long-term outlook remains strong. This is backed by more molecules in clinical trials, steady global R&D spending, and cost optimisation by global firms.”
