5 Pharma stocks in which Jefferies sees strong business...

Synopsis: Jefferies is positive on select Indian pharma stocks, naming Ajanta Pharma, Sun Pharma, Mankind Pharma, Zydus Lifesciences, and Entero Healthcare Solutions Limited, citing growth potential of up to 31%.

India’s pharmaceutical sector continues to remain an attractive space for investors, supported by strong domestic demand, export opportunities, and improving long-term growth visibility. The sector is expected to deliver double-digit revenue growth, with momentum likely to strengthen in the second half of CY26. While near-term challenges exist, especially for companies with higher exposure to the US market, the overall outlook for Indian pharma remains positive.

Against this backdrop, Jefferies, a global brokerage firm, has turned constructive on select Indian pharma stocks and highlighted a high growth potential of up to 31 percent in some companies. The brokerage expects domestic business growth to stay steady, providing stability even as certain global uncertainties persist. However, Jefferies notes that H1 CY26 could remain weak for companies with significant gRevlimid exposure and is expected to deliver double-digit revenue growth in H2 CY26.

Jefferies has identified Mankind Pharma Limited, Ajanta Pharma Limited, Sun Pharmaceutical Industries Limited, and Zydus Lifesciences Limited as its top picks, citing stable domestic growth, strong product portfolios, and improving earnings visibility. A potential Section 232 ruling in the US in Q1 CY26, which may impact pharma tariffs, remains a key event to watch going forward.

Here are a few Pharma stocks recommended by Jefferies with a high growth potential of up to 31 percent:

Ajanta Pharma Limited

With a market capitalization of Rs. 33,857.55 crore, the shares of Ajanta Pharma Limited were currently trading at Rs. 2,710 per equity share, down nearly 0.76 percent from its previous day’s close price of Rs. 2730.75.

Jefferies, a prominent brokerage firm, has recommended a “Buy” call on Ajanta Pharma Limited, raising its target price to Rs 3,500 from Rs 3,120, indicating an upside potential of 29.15 percent

Ajanta Pharma Limited is engaged in developing, manufacturing, and marketing branded generic specialty pharmaceuticals, specializing in ophthalmology, dermatology, cardiology, and anti-malarials for domestic and export markets. With R&D-driven innovation, it exports to over 30 countries, emphasizing quality and niche therapeutic segments.

Sun Pharmaceutical Industries Limited

With a market capitalization of Rs. 4,13,539.63 crore, the shares of Sun Pharmaceutical Industries Limited were currently trading at Rs. 1,723.60 per equity share, down nearly 0.36 percent from its previous day’s close price of Rs. 1,729.80.

Jefferies has recommended a “Buy” call on Sun Pharmaceutical Industries Limited, raising its target price to Rs 2,100 from Rs 2,000, indicating an upside potential of 21.84 percent

Sun Pharmaceutical Industries Limited is engaged in researching, developing, manufacturing, and marketing a broad portfolio of branded and generic pharmaceuticals, specialty drugs, and APIs globally across dermatology, oncology, and neurology. As India’s largest pharma firm, it operates in over 100 countries with robust U.S. generics leadership.

Mankind Pharma Limited

With a market capitalization of Rs. 91,289.78 crore, the shares of Mankind Pharma Limited were currently trading at Rs. 2,211.45 per equity share, down nearly 0.07 percent from its previous day’s close price of Rs. 2,213.05.

Jefferies has recommended a “Buy” call on Mankind Pharma Limited, cutting its target price to Rs 2,900 from Rs 3,000, indicating an upside potential of 31.14 percent

Mankind Pharma Limited is engaged in manufacturing and marketing affordable pharmaceutical formulations, consumer healthcare products, and APIs across anti-infectives, gastrointestinals, and cardiovascular therapies, with a strong presence in India and emerging markets. The company focuses on high-volume generics and OTC brands, leveraging extensive distribution networks to serve diverse patient needs.

Zydus Lifesciences Limited

With a market capitalization of Rs. 90,007.63 crore, the shares of Zydus Lifesciences Limited were currently trading at Rs. 894.50 per equity share, down nearly 0.64 percent from its previous day’s close price of Rs. 900.25.

Jefferies has recommended a “Buy” call on Zydus Lifesciences Limited, raising its target price to Rs. 1,130 from Rs 1,120, indicating an upside potential of 26.33 percent

Zydus Lifesciences Limited is engaged in providing integrated healthcare solutions through formulations, APIs, vaccines, biosimilars, and animal health products, operating across countries with a focus on innovation and affordability. Key areas include respiratory, cardiovascular, and oncology, supported by advanced R&D facilities.

Entero Healthcare Solutions Limited

With a market capitalization of Rs. 5,287.67 crore, the shares of Entero Healthcare Solutions Limited were currently trading at Rs. 1,215.25 per equity share, down nearly 0.47 percent from its previous day’s close price of Rs. 1,221.

Jefferies has upgraded its recommendation from “Hold” to a “Buy” call on Entero Healthcare Solutions Limited, raising its target price to Rs. 1,320 from Rs. 1,250, indicating an upside potential of 8.62 percent.

Entero Healthcare Solutions Limited is engaged in B2B pharmaceutical distribution, connecting manufacturers with retailers, hospitals, and pharmacies via a tech-enabled platform across cities in India. It offers a wide SKU range, including generics, OTC, and surgicals, ensuring efficient supply chain logistics.

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