India’s healthcare sector is experiencing significant growth due to the rise in chronic diseases, increased awareness of wellness, and robust government support.
As healthcare infrastructure improves and access to quality services broadens, the demand for hospitals, diagnostics, pharmaceuticals, and advanced therapies also rises. For investors, this represents a commitment to long-term opportunity.
In this guide, we will look closely at the 10 best stocks in healthcare in India right now. These companies are not only the leaders in this segment but are also shaping the future of medical care in the country.
Why invest in healthcare stocks in India?
By 2030, the Indian healthcare industry is projected to develop at a compound annual growth rate (CAGR) of 16–17% to reach USD 638 billion.
Rising disposable incomes, an increase in the number of people with health insurance, government programs like Ayushman Bharat, and lifestyle changes that contribute to the rise in chronic diseases are some of the causes.
Additionally, Indian healthcare companies have a competitive edge internationally because of their status as a global pharmaceutical hub, which includes low production costs and a large skill pool. The industry is starting a new period of innovation as a result of the combination of AI and digital health, which makes this a perfect long-term investment subject.
Types of Healthcare Stocks in India
Healthcare is more than simply pharmaceuticals and hospitals. These are the main sections:
- Pharmaceuticals: Generic and branded drug makers (e.g., Sun Pharma, Cipla).
- API & CRAMS: Focused on supplying ingredients or research for drugs (e.g., Neuland, Supriya).
- Hospitals & Diagnostics: Focused on healthcare delivery (e.g., Apollo, Fortis).
- Biotech & Biosimilars: Emerging field in India, often part of larger pharma players (e.g., Dr. Reddy’s).
- Digital Health: Companies integrating health-tech and telemedicine (e.g., Apollo’s digital arm).
10 best Healthcare stocks in India
| Stock Name | Segment | Market Cap (₹ Cr) | Action |
|---|---|---|---|
| Sun Pharma | Pharma (Global) | ~4,00,000 | Invest Now |
| Dr. Reddy’s Labs | Pharma (Global) | ~1,05,000 | Invest Now |
| Cipla Ltd. | Pharma (Chronic) | ~1,20,000 | Invest Now |
| Apollo Hospitals | Hospitals | ~1,07,000 | Invest Now |
| Max Healthcare | Hospitals | ~1,21,000 | Invest Now |
| Fortis Healthcare | Hospitals | ~98,000 | Invest Now |
| Lupin Ltd. | Pharma | ~87,000 | Invest Now |
| Aurobindo Pharma | Pharma / API | ~67,000 | Invest Now |
| Neuland Laboratories | API / CRAMS | ~15,000 | Invest Now |
| Supriya Lifescience | Niche API | ~5,700 | Invest Now |
Key Metrics to Analyze Before Investing
- P/E Ratio: Valuation relative to earnings.
- ROE (Return on Equity): Capital efficiency.
- EPS (Earnings Per Share): Indicates profitability.
- P/B Ratio: Useful for asset-heavy companies like hospitals.
- Dividend Yield: For income-focused investors.
- Debt-to-Equity Ratio (you can optionally include this too): Indicates financial health.
For example, a firm may be growing effectively if its ROE is high and its P/E ratio is reasonable. In bullish small caps, keep an eye out for inflated P/E.
In-Depth Look at the Top 10 Healthcare Stocks
1. Sun Pharma
Sun Pharma has been a part of India’s pharmaceutical industry for a very long time. It has operations in over 100 countries and has a strong presence in the US, making it the world’s fourth-largest generic pharma company. Sun Pharma is a relatively safe bet for long-term investors who want global exposure without leaving the Indian markets.
Company Snapshot
- Founded: 1983 by Dilip Shanghvi
- Headquarters: Mumbai, Maharashtra
- Current MD: Dilip Shanghvi
- Segment: Global pharmaceuticals (specialty generics)
Fundamentals
- Market cap – 4,00,005 Cr
- P/E Ratio – 36.90
- Dividend Yield – 0.96%
- ROE – 15.13%
- P/B Ratio – 5.54
- EPS – 45.55
2. Dr. Reddy’s Laboratories
Dr. Reddy’s Laboratories is respected globally due to its presence in the generic drug and biosimilars sectors. Its strategic focus on North America, Russia, and India gave it a solid diversification. It has also made smart acquisitions, which strengthened its pipeline. It is ideal for investors who want exposure to the international market with the backing of Indian cost efficiency.
Company Snapshot
- Founded: 1984 by Dr. K. Anji Reddy
- Headquarters: Hyderabad, Telangana
- Current Management: Co-Chairmen Satish Reddy & G. V. Prasad, CEO Erez Israeli
- Segment: Generics, biosimilars, API
Fundamentals
- Market cap – 1,05,954 Cr
- P/E Ratio – 18.74
- Dividend Yield – 0.63%
- ROE – 16.86%
- P/B Ratio – 3.16
- EPS – 67.76
3. Cipla Ltd
Cipla has a strong name for itself in the chronic space, especially respiratory, HIV, and cardiovascular treatments. It’s also rapidly digitizing its supply chain and entering new growth segments. With a mix of indian and overseas returns, Cipla offers stability. This is great for medium-risk investors who are looking for gradual compound growth over time.
Company Snapshot
- Founded: 1935 by Dr. Khwaja Abdul Hamied
- Headquarters: Mumbai, Maharashtra
- Chairman/MD: Dr. Y. K. Hamied; CEO/MD: Umang Vohra
- Segment: Chronic therapy generics & branded drugs
Fundamentals
- Market cap – 1,20,494 Cr
- P/E Ratio – 22.85
- Dividend Yield – 1.07%
- ROE – 16.90%
- P/B Ratio – 3.86
- EPS – 65.28
4. Apollo Hospitals
Apollo is a leader in private healthcare services and the biggest hospital network in India. It has spread beyond hospitals to include digital health, pharmacies, and diagnostics. Additionally, it is rapidly leveraging the wellness and high-end healthcare markets. For investors who are optimistic about India’s healthcare consumption narrative, this stock is excellent. Apollo is becoming a whole health-tech ecosystem, not simply a hospital stock.
Company Snapshot
- Founded: 1983 by Dr. Prathap C. Reddy
- Headquarters: Chennai, Tamil Nadu
- Segment: Multispecialty hospitals, diagnostics, pharmacy, digital health
Fundamentals
- Market cap – 1,07,327 Cr
- P/E Ratio – 74.23
- Dividend Yield – 0.38%
- ROE – 17.61%
- P/B Ratio – 13.08
- EPS – 100.56
5. Max Healthcare
One of the top private hospital groups in India is still Max Healthcare. With additional facilities in Saket, Nanavati, Mohali, and other locations, it is quickly growing its presence. Max is an attractive choice for investors who are optimistic about India’s expanding healthcare infrastructure because of its excellent cash flow, consistent profitability, and asset-light development plan. The company just reached an all-time stock high.
Company Snapshot
- Founded: 2001 by Analjit Singh
- Headquarters: New Delhi
- Current MD/Chairman: Abhay Soi
- Segment: Private hospitals & home healthcare
Fundamentals
- Market cap – 1,21,246 Cr
- P/E Ratio – 112.66
- Dividend Yield – 0.12%
- ROE – 11.47%
- P/B Ratio – 12.92
- EPS – 11.07
6. Fortis Healthcare
Under the current leadership, Fortis has had a significant metamorphosis and is now concentrating on increasing its presence in tier-1 cities and improving operational efficiency.
The business is steadily increasing patient outcomes and profitability. An encouraging choice for investors seeking a medical industry revival. Although it is more erratic than Apollo, if the trajectory holds, it has greater development potential.
Company Snapshot
- Founded: 1996 by Shivinder Mohan Singh
- Headquarters: Gurugram, Haryana
- Current MD & CEO: Dr. Ashutosh Raghuvanshi
- Segment: Multispecialty hospitals, diagnostics
Fundamentals
- Market cap – 98,440 Cr
- P/E Ratio – 21.75
- Dividend Yield – 1.12%
- ROE – 18.89%
- P/B Ratio – 4.11
- EPS – 44.97
7. Lupin Ltd.
Lupin has had its ups and downs over the past few years, but it is still a major player in the respiratory, cardiovascular, and anti-infective markets. The company’s new focus on controlling costs and specialized generics in the U.S. is starting to pay off. Lupin is a good option for investors who are willing to take a bit of risk for a potential turnaround story.
Company Snapshot
- Founded: 1968 by Dr. Desh Bandhu Gupta
- Headquarters: Mumbai, Maharashtra
- Segment: Generics, branded formulations, APIs
Fundamentals
- Market cap – 87,377 Cr
- P/E Ratio – 26.63
- Dividend Yield – 0.63%
- ROE – 19.08%
- P/B Ratio – 5.08
- EPS – 71.85
8. Aurobindo Pharma
Aurobindo Pharma is one of the most integrated pharma companies in India, with both finished and integrated API.
The stock has been volatile, but it has a lot of products in the works and a consistent increase in exports. Investors seeking a balance between manufacturing size and export potential may consider this mid-cap investment.
Company Snapshot
- Founded: 1986 by P. V. Ramprasad Reddy & K. Nityananda Reddy
- Headquarters: Hyderabad, Telangana
- Segment: Generics & APIs (vertically integrated)
Fundamentals
- Market cap – 67,026 Cr
- P/E Ratio – 19.23
- Dividend Yield – 0.00%
- ROE – 10.68%
- P/B Ratio – 2.05
- EPS – 59.49
9. Neuland Laboratories
Neuland Laboratories is renowned for its niche API manufacturing. It stands out in international supply chains due to its leadership in specialized APIs with high entry barriers. Even if Neuland’s profitability is weak right now, its distinctive chemical portfolios and demand for APIs worldwide will make it valuable in the long run. For investors who are patient and have a margin of safety attitude, this stock is a higher-volatility, higher-reward investment.
Company Snapshot
- Founded: 1984
- Headquarters: Hyderabad, Telangana
- Executive Chairman: Dr. Davuluri Rama Mohan Rao
- CEO: Sucheth Rao
- Segment: Niche APIs and CDMO (Contract Development and Manufacturing Organization)
Fundamentals
- Market cap – 15,359 Cr
- P/E Ratio – 59.05
- Dividend Yield – 0.10%
- ROE – 13.30%
- P/B Ratio – 10.08
- EPS – 202.74
10. Supriya Lifescience
Supriya is a Mumbai-based US FDA and European-approved API manufacturer. It focuses on niche segments like antihistamines, anesthetics, vitamins, and anti-asthmatics, operating through cGMP-compliant plants. Classic small-cap growth stocks like Supriya are debt-free, authorized by the aftermarket, and have a particular focus. It’s ideal for those who don’t mind volatility and size.
Company Snapshot
- Founded: Early 1987
- Headquarters: Mumbai, Maharashtra
- Segment: Niche API manufacturing (antihistamines, anesthetics, vitamins, anti-asthmatics)
Fundamentals
- Market cap – 5,721 Cr
- P/E Ratio – 30.44
- Dividend Yield – 0.14%
- ROE – 18.86%
- P/B Ratio – 5.74
- EPS – 23.35
Summary Table – Top Picks Based on Investor Profile
| Investor Type | Stocks |
| Conservative | Sun Pharma, Apollo Hospitals, Cipla |
| Growth-focused | Max Healthcare, Dr. Reddy’s, Neuland Labs |
| Risk-tolerant | Supriya Lifescience, Fortis, Aurobindo Pharma |
| Diversified Portfolio | Blend of top 5 large-caps + 1-2 small caps (Neuland, Supriya) |
Conclusion
These ten stocks give you exposure to the key drivers of India’s healthcare sector – pharma exports, hospital networks, diagnostics, and specialty APIs.
Each serves a clear purpose in a balanced portfolio. If you want steady returns, stick with large-cap names. If you’re aiming for upside, small-cap API players offer that, along with volatility.
Don’t rely on momentum or headlines. Focus on margins, debt levels, and long-term demand. Use this list as a filter, then dig deeper.
This content is for informational purposes only and not financial advice. MoneyIsle (moneyisle.in) is not a SEBI-registered advisor. Always consult a licensed professional before investing.
