Human developments and greed since its evolution into homo sapiens have resulted in the slow destruction of nature. It is accompanied by a growing crisis of climate instability, an inefficient immune system, new diseases, and more. However, in these crises, technological aid and innovation in the biotechnology industry are seeking to help humans combat these crises.
As per a World Health Organisation report, the average life expectancy has increased by 6 years from 2000 to 2019. However, it dropped to 2016 levels of 72.5 years after the pandemic. In order to avoid such issues, development in the overall biotechnological industry is crucial.
One of the main sources for funding of such innovation is the stock market. Moreover, investors also have a potential opportunity to invest in biotechnology stocks and diversify their portfolios. However, finding suitable stocks may be a cumbersome task.
The list of top biotechnology stocks in India based on market capitalisation may help investors.
Biotechnology sector: A modern world’s need
The industry is vast and includes a cohort of multiple sectors like pharmaceuticals and medical research. The amalgamation of biological innovation and modern technology has the potential to cater to the ever-growing population of India. It was evident during the pandemic when India manufactured and distributed the vaccines to several countries.
The growth rate of the industry has been significant, and experts estimate a potential uptrend in the upcoming years for India.
| Financial Year | Indian biotechnology industry valuation (in US$ billion.) |
| 2019 | 63 |
| 2024 | 130 |
| 2025 | 150 (estimated) |
| 2023 | 300 (estimated) |
Source: Indian Brand Equity Foundation (IBEF)
Due to future projections and growing a suitable business environment, the industry’s growth expectations seem favourable for investors. The stock market can be a potential avenue for investment in biotechnology stocks in India.
Dive deeper into the biotechnology sector: Biotechnology industry in India: A sector overview & future prospects
Top biotechnology stocks in India
Here are the top biotechnology stocks that are curated based on their operations and ranked based on their market capitalisation as of November 29, 2024.
It is India’s one of the finest startups in India by the prominent Indian entrepreneur Kiran Mazumdar Shaw. In 1978, the company was incorporated into the biotech products and drug business in India. It is the pioneer of introducing the ‘Insulin’ in India.
Along with its brand value, the company’s financials have experienced a massive uptick in recent years. In the past five years, its net profit has almost doubled, and its share price has surged by nearly 26%.
Being a Biocon subsidiary, it specializes in research and innovation and has a major client base in the United States of America (USA). It caters to several diverse ranges of sectors such as animal health, nutrition, speciality chemicals, etc. The company’s financial performance growth is evident in the past five years, when its revenue has surged by almost 91%.
The company specialises in drug and injectibles discovery and has been in the business for almost 57 years in 2024. The company’s profit is in the declining trend post 2021. However, its products have the potential to regain market share.
- Indegene Ltd
The company was freshly listed in the market in May 2024 but has been in the business for over two decades. It provides services to the top 20 pharma companies in the world in 2023 (based on revenue). Its revenue has surged by nearly 368% in the past five years. The recent listing may help the company source the required financial resources.
The brand of ‘Sun Pharma’ is a prominent market leader in the pharma sector. This subsidiary is mainly engaged in research and innovation for its main company. However, the company has been consistently incurring losses for many years.
An interesting read: Cipla vs Sun Pharma: Titans of India’s pharmaceutical industry
Comparative analysis
| Particulars (Amount in ₹ crores) | Revenue | Net profit margin | Networth | Return on Equity (ROE) | P/E* (in times) |
| Biocon Ltd | 14,894.1 | 8.5% | 20,993.2 | 5.2% | 30.3 |
| Syngene Ltd | 3,451.1 | 14.9% | 4,395.5 | 13.2% | 82.1 |
| Wockhardt Ltd | 2,949.0 | (14.8%) | 3,395.0 | (12.1%) | 0.0 |
| Indegene Ltd | 2,709.7 | 12.9% | 2360.0 | 26.8% | 43.9 |
| SPARC Ltd | 60.1 | (514.4%) | 124.8 | (121.9%) | 0.0 |
Final thoughts
The potential growth of the biotech sector may create opportunities for many biotechnology stocks in India. Investors can benefit by making informed investment decisions based on their financial objectives and risk appetite. However, investments are crucial decisions and may be affected by several personal factors. Therefore, it may differ for investors.
Must read: Best Pharma Stocks to Invest in India
FAQs
- Which sub-sectors are part of the biotech industry?
It is a cohort of different industries. Pharmaceuticals and medical research would be categorised under these sectors. Integrating biological innovations in terms of drugs and treatment with technology has the potential to revolutionise the healthcare sector.
- Is biotechnology a good investment?
Indian biotech has been growing along with overall technological adaption in the country, and its future aspects are also promising. Investors can be a part of this growth by investing in biotechnology stocks. Moreover, this funding may also help better advancement in the overall process of upgradation of medical science.
- Why is biotechnology so crucial?
In the wake of modern developments, humans have largely damaged the earth. Consequences of the same are visible in depleting climate stability and a growing number of diseases. In such circumstances, constant innovation in medical science is crucial. Biotechnology upgradation has the potential to safeguard people from several issues.
- What is Biocon famous for?
Apart from drug manufacturing for several crucial diseases, the company is famous for its insulin production. It is a pioneering entity to commercialise insulin in 2024 in India. It was further approved in 40 other countries. Moreover, the company’s founder is one of the first women entrepreneurs in the country.
- What are the prospects for the biotechnology industry in India?
India is perceived as one of the most crucial destinations for biotech innovations since the pandemic period. The vaccine production and distribution in COVID-19 has its major credit. The industry is expected to grow by nearly 9.5% in FY 2025.
