Introduction:
India boasts the most competitive pharmaceutical industry in the world. As per the official data, pharma production costs in India are approximately 33% less than those in the United States of America (USA). This capacity to produce high-quality medicines at a lower cost presents significant investment opportunities for domestic and global investors.
Over time, domestic pharmaceutical manufacturers have substantially increased their research and development expenditures to stay competitive in the global market. The COVID-19 pandemic, while posing challenges, has also spurred pharma companies to accelerate their focus on various segments of the industry, potentially turning the crisis into a strategic advantage. The government's production-linked incentive (PLI) scheme has also boosted Indian pharmaceutical companies.
All these factors have positioned Indian pharmaceutical companies on investors' priority lists. These opportunities extend beyond the established pharma enterprises to their smaller counterparts, which have the potential to make breakthroughs and gain recognition in the future. Identifying and investing in such stocks can provide exceptional returns in the long term.
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Top pharma penny stocks to buy in India in 2024
Pharma penny stocks in India represent low-priced equity shares in Indian pharmaceutical companies. These stocks typically trade at less than Rs. 100 and belong to companies with smaller market capitalisations, making them more susceptible to market volatility and price fluctuations.
Investors are often attracted to pharma penny stocks, driven by the prospect of substantial profits fueled by expectations of significant growth or advancements in the pharmaceutical industry. However, it is crucial to understand the inherent risks as these stocks may suffer from a lack of liquidity and stability.
Below are the top Indian pharma penny stocks you can consider investing in 2024:
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Sudarshan Pharma Industries
Sudarshan Pharma Industries Limited is a Mumbai-based manufacturer of generic medicines. The company is also involved in import and export operations, as well as the supply of speciality chemicals, Active Pharmaceutical Ingredients (API), and intermediates.
As of 6 March 2024, Sudarshan Pharma Industries’ shares were trading for Rs. 77.22 per share at the Bombay Stock Exchange (BSE). The 52-week high and low prices are Rs. 91.00 per share and Rs. 51.85 per share. The company’s market cap stood at Rs. 183 crores.
Read More: Penny Stock in India 2024
Shelter Pharma Limited manufactures herbal products for the Human Pharma and Veterinary sectors. In addition to serving the domestic market, the company exports its products to various countries, including Egypt, Qatar, Kuwait, the United Arab Emirates (UAE), Nepal, Bangladesh, Yemen, Iraq, and Cameroon.
Shelter Pharma Limited launched its Initial Public Offering (IPO) at an issue price of Rs. 42 per share. As of 6 March 2024, the company’s shares were trading for Rs. 60.99 at the BSE. The ROE stood at 19.83%.
Syschem (India) Limited manufactures bulk drugs and APIs. The company has a diverse product portfolio and a global footprint. By pioneering new processes and molecules, it anticipates becoming a prominent player in the Indian pharmaceutical sector.
As of 6 March, Syschem (India) Limited shares were trading for Rs. 58.24 per share at the BSE. The stock has zoomed by more than 30% in the last year. The ROE stood at 20.95%.
Medico Remedies Limited manufactures tablets, capsules, and dry syrups in both general and B-lactam categories. The company’s manufacturing unit is situated in Palghar, Maharashtra. In addition to the Indian market, the company exports its products to parts of Europe and the United States of America (USA).
As of 6 March 2024, Medico Remedies Limited shares were trading for Rs. 84.85 per share at the National Stock Exchange (NSE) and Rs. 84.79 per share at the BSE. The stock has zoomed by more than 31% in the last year.
To conclude
Investing in pharma penny stocks can give investors distinctive investment opportunities to diversify their portfolios and gain exceptional long-term returns. The companies mentioned above represent the best pharma penny stocks to invest in India in 2024. However, you must exercise due diligence, conduct thorough research, and profoundly understand the company’s fundamentals while making investment decisions.
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