1 / 8Brokerage firm Motilal Oswal Wealth Management wrote in a note that India’s Pharma industry is likely to grow between 9% to 11% in financial year 2026, citing a report by CRISIL. The growth will be led by price hikes and new launches in the domestic market and a rise in export demand from regulated markets.
2 / 8The government has also introduced a PLI scheme for the Pharma industry to promote Make-In-India, wherein nearly 18% to 20% of imported drugs can be manufactured locally. For the hospitals business, Motilal Oswal Wealth said that it expects profitability to improve due to the addition of beds, increase in occupancy and improving realisations.
3 / 8Based on this, Motilal Oswal Wealth Management has curated a basked of five stocks from this segment wherein it has placed an allocation of 20% each for this basket. Here is a look at these five stocks:
4 / 8Mankind Pharma | The stock continues to deliver better growth rate compared to the industry in the Rx-prescription business, supported by a niche portfolio and superior execution in the chronic therapies space. Motilal Oswal has a potential upside of around 10% for Mankind Pharma with a price target of ₹3,140.
5 / 8Max Healthcare | Max Healthcare’s combination of brownfield, greenfield and inorganic expansion will drive strong revenue growth and pave the way for a quicker breakeven on the Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) front for new beds, thus driving higher operating leverage benefits. Motilal Oswal has a 21% potential upside for Max Healthcare with a price target of ₹1,380.
6 / 8Lupin | The drugmaker has started to show an earnings turnaround, driven by an addition of niche products in the US generics segment, industry outperformance in the domestic formulations business and differentiated product launches in the EU and growth markets. Motilal Oswal does not see significant upside on Lupin as it has a price target of ₹2,210 on the stock. However, it must be noted that the stock is up 66% so far in 2024.
7 / 8IPCA Labs | The company is working on multiple fronts to maintain its strong earnings momentum over the next two to three years. The momentum is likely to be driven by relaunches of products in the US markets, new offerings through its own as well as those of the Unichem sites, outperforming the industry in Rest of World Markets and synergies with Unichem’s operations. Motilal Oswal projects a 23% potential upside for the stock with a price target of ₹1,930.
8 / 8Piramal Pharma | MOSL Wealth believes that Piramal Pharma is well poised to benefit from its differentiated capabilities and capacities due to the enhanced inquiries on the CDMO front at an industry level. It expects Piramal Pharma’s net profit to jump to ₹700 crore in financial year 2026 from ₹56 crore in financial year 2024. Motilal Oswal has a 20% potential upside for Piramal Pharma with a price target of ₹310.
