Healthcare Stocks to Invest in India

The demand for accessible and affordable medical services has significantly increased. As a result, companies operating in the healthcare sector got new opportunities to increase their sales figures. Healthcare stocks represent the shares of companies developing medicines and medical equipment to offer healthcare services. Market volatility sometimes impacts such stocks. Thus, it is essential to conduct thorough research before investing in healthcare sector stocks. 

Healthcare Sector in India

We have already witnessed propelling growth in the healthcare sector during the pandemic (COVID-19). Huge demand for medical equipment, insurance, generic drugs, vaccines, and other healthcare services offered companies an impeccable path to increase revenues. The healthcare sector in India is expected to be valued at more than $610 billion by 2026. This significant growth will bring a boom in healthcare stock prices and provide investors with exciting returns on their investments.  

Although India produces approximately half of the global pharmaceutical products and has become the 3rd largest pharmaceutical producer country, the government is still launching several initiatives, including PTUAS (Pharmaceutical Technology, Upgradation Assistance Scheme), PMBJP (Pradhan Mantri Bhartiya Janaushadhi Priyojana), and more. 

Like other sectors, healthcare requires investors to monitor emerging and upcoming trends to generate higher returns. We have something exciting for you. Explore the best healthcare stocks in India in the table below to fuel further increments in your investment portfolio. 

Healthcare Sector Stocks List

*Data is updated as of 14th November 2024

Overview of Healthcare Sector Stocks

1. Sun Pharmaceuticals Industries Ltd. (NSE: SUNPHARMA)

Sun Pharmaceuticals Industries Ltd. is a Mumbai-based organisation founded in 1983. It manufactures and sells pharmaceutical formulations and active pharmaceutical ingredients (APIs) in 100+ nations. Sun Pharmaceutical Industries Ltd. currently operates as one of the giant pharmaceutical companies across the globe. The market capitalisation of this one of the best healthcare stocks in India is INR 4,25,000 crores, and its PE (Price-to-Earnings) Ratio is 38.38. 

2. Divi’s Laboratories Ltd. (NSE: DIVISLAB)

Divi’s Laboratories Ltd. is an India-based company founded on 12th October 1990 and currently engaged in the manufacturing of active pharmaceutical ingredients (APIs) and intermediates. In terms of global market share of naproxen, gabapentin APIs, and dextromethorphan, Divi’s Laboratories Ltd. owns a 60% to 85% share. The market capitalisation of this pharmaceutical company is INR 1,53,000 crores, and its PE (Price-to-Earnings) ratio is 82.95. 

3. Cipla Ltd. (NSE: CIPLA)

Cipla Ltd. is a Mumbai-based multinational company that develops medications to treat various diseases, including respiratory diseases, arthritis, diabetes, depression, and cardiovascular disease. Cipla Ltd. was founded in 1935 and now owns a cosmetics brand named “Ivia Beaute Pvt. Ltd.” The market capitalisation of this one of the best healthcare stocks is INR 1,22,000 crores and its PE (Price-to-Earnings) ratio is 27.10.   

4. Dr Reddy’s Laboratories Ltd. (NSE: DRREDDY)

Dr Reddy’s Laboratories Ltd. was founded in 1984 and is currently headquartered in Hyderabad, Telangana. It has become one of the best healthcare stocks in India, with a portfolio of different products, such as biosimilars, custom pharmaceutical services, active pharmaceutical ingredients (APIs), and generic medicines. Further, Dr Reddy’s Laboratories Ltd. is about to include 15 GLP-1 drugs for treating diabetes and obesity in the portfolio. The market capitalisation of this stock is INR 1,02,000 crores, and its PE (Price-to-Earnings) ratio is 19.19. 

5. Apollo Hospitals Enterprises Ltd. (NSE: APOLLOHOSP)

Apollo Hospitals Enterprises Ltd. was founded on 18th September 1983 in Chennai, Tamil Nadu. With a network of 71 managed hospitals across the country, this healthcare sector stock has been successfully added to the Nifty 50 benchmark index. The market capitalisation of Apollo Hospitals Enterprises Ltd. is INR 98,840 crores, and its PE (Price-to-Earnings) ratio is 83.34. 

6. Fortis Healthcare Ltd. (NSE: FORTIS)

Fortis Healthcare Ltd., founded in 1996, is a Gurugram-based healthcare company that owns a giant network of hospitals and offers a full spectrum of integrated services. Fortis aims to integrate a world-class healthcare delivery system in the country by providing compassionate patient care. The market capitalisation of this organisation is INR 48,260 crores, and its PE (Price-to-Earnings) ratio is 73.41. 

7. Glenmark Pharmaceuticals Ltd. (NSE: GLENMARK)

Glenmark Pharmaceuticals Ltd. was established in 1977 in Mumbai, Maharashtra. The company provides pharmaceutical solutions to treat different kinds of diseases, such as dermatology, oncology, and respiration. Recently, Glenmark Pharmaceuticals Ltd. collaborated with Ichnos Glenmark Innovation to offer extensive cancer treatments to patients. The market capitalisation of this one of the best healthcare stocks in India is INR 43,410 crores, and its price-to-earnings (PE) ratio is -49.50. 

8. Global Health Ltd. (NSE: MEDANTA)

Global Health Ltd., also known as Medanta, was established on 13th August 2004. The company treats a wide range of diseases, including cancer, coronary artery disease, Parkinson’s, asthma, arthritis, vision problems, and more. Global Health Ltd. owns five hospitals and six medical stores in different cities, such as Gurugram, Delhi, Patna, Ranchi, and more. The market capitalisation of this organisation is INR 28,790 crores, and its PE (Price-to-Earnings) ratio is 59.36. 

9. Piramal Pharma Ltd. (NSE: PPLPHARMA)

Piramal Pharma Ltd. was founded in 1984 in Mumbai, Maharashtra. The company is serving across different areas such as healthcare, life science, drug discovery, and more. Piramal Pharma Ltd. operates with 17 different facilities and owns a distribution network in 100+ nations. The market capitalisation of this one of the best healthcare stocks in India is INR 34,110 crores, and its PE (Price-to-Earnings) ratio is 738.14.

Healthcare Stocks With PE Ratio

Here is the list of the best healthcare stocks in India with their PE (price-to-Earnings) ratios to smoothen your research and investment journey. 

*Data is updated as of 14th November 2024

How to Invest In?

Investing in healthcare sector stocks is good for building wealth in the long term. However, a few people are still confused about how to invest. Don’t worry. Univest is here to help you know about the process of making a diversified investment portfolio for higher returns. 

• Register With Broker: Register with a SEBI-registered broker and open a Demat account to trade in stocks. To get registered, you just need to provide some documents and verify them with the broker. 
• Conduct Research: Proper research could help you identify potential stocks from the list of top healthcare stocks in India. Consider significant indicators such as PE ratio, EPS, company financials, and more to analyse their future prospects. 
• Stock Advisory: Whether you are a beginner or an experienced investor, be on a stock advisory platform to have a safe investment portfolio. We suggest you explore the Univest App once with five free trades for investing in healthcare sector stocks efficiently. 
• Select Best Stocks: Choose the best healthcare stocks in India to invest your valuable money. Try selecting two or more stocks to diversify your portfolio so that you can generate balanced/higher returns in the upcoming years. 
• Place Transaction: Add funds to your demat account and select the quantity you wish to buy. Place a transaction on the lowest possible price and watch your investment in the portfolio section of your demat account. 

Let’s Wrap 

Despite being defensive in nature, healthcare stocks in India can still experience market volatility due to several external and internal factors. It is highly recommended that you conduct your own research when investing in healthcare sector stocks. India is the third-largest healthcare producer in the world, engaged in around 50% of the production of drugs, vaccines, and medical equipment. Experts acclaimed that in the coming years, India will grow with significant potential. Seek further guidance from Univest to invest your invaluable money in healthcare stocks. 

FAQs

1. Which healthcare stocks are to buy in 2025?

Ans. Here are some of the best healthcare stocks in India to buy in 2025. 

• Sun Pharmaceuticals Industries Ltd. (Market Cap. INR 4,25,000 crores)
• Divi’s Laboratories Ltd. (Market Cap. INR 1,53,000 crores) 
• Cipla Ltd. (Market Cap. INR 1,22,000 crores)
• Torrent Pharmaceuticals Ltd. (Market Cap. INR 1,05,000 crores)
• Mankind Pharma Ltd. (Market Cap. INR 1,04,000 crores)

2. Is investing in healthcare sector stocks worth it?

Ans. From regular check-ups to huge treatments, the healthcare sector in India has a crucial role in ensuring the well-being of people. Investing in healthcare sector stocks is really worth it because of the huge demand and the projection of achieving more than $610 billion by 2026. 

3. Which is the largest healthcare company in India?

Ans. Sun Pharmaceuticals Industries Ltd. is the largest healthcare company in India, with a market capitalisation of INR 4,25,000 crores. But, if we talk about operations, Apollo Hospitals owns over 70 units nationwide and has become India’s number one healthcare company.  

4. What is the CAGR of the healthcare sector in India?

Ans. The healthcare sector in India reached around $372 billion with a CAGR (Compound Annual Growth Rate) of  22%. Analysts expect this significant growth to continue in the coming years.