Shares of Lupin, Sun Pharmaceutical Industries, Zydus Lifesciences and Dr Reddy's Laboratories gained on Friday after Nomura highlighted strong growth in the Indian Pharmaceutical Market (IPM) in September, with the brokerage retaining 'Buy' ratings on all four stocks.
At 10:50 am, Zydus Lifesciences shares were up 0.83% at Rs 1,121.20 on the NSE, while Sun Pharma gained 0.77% to Rs 1,773.40 as of 10:51 am. Lupin advanced 1.31% to Rs 1,962.30, while Dr. Reddy's Laboratories rose 0.91% to Rs 1,190.70 as of 10:58 am. Torrent Pharmaceuticals, which Nomura rates 'Neutral', was up 0.34% at Rs 4,632.90 as of 10:51 am.
In its October 8 note, Nomura said the IPM recorded 13.5% year-on-year growth in September, its strongest performance in three years. Zydus and Sun Pharma led growth among the top 20 pharmaceutical companies, with sales rising 23.5% and 21.5% year-on-year, respectively.
"While price increases contributed 6% year-on-year to growth, volume expansion in existing products and new product launches have become increasingly material drivers of IPM expansion," Nomura said.
For the quarter ended 2QFY27, Zydus and Sun Pharma sustained momentum, recording year-on-year growth of 20.6% and 17.9%, respectively.