Missed the pharma rebound? Gland Pharma, Cipla among 8 stocks that jumped up to 28% since April

Mumbai, June 6, 2025:
India’s pharmaceutical sector has quietly delivered an impressive comeback since April 2025, with select stocks registering double-digit gains, fueled by strong earnings, robust export outlook, and broader market sentiment favoring defensive bets. Notably, Gland Pharma and Cipla are among the eight pharma stocks that have surged as much as 28% in the last two months, leaving latecomers wondering if they’ve missed the rally—or if more upside lies ahead.

Market Context: Pharma’s Quiet Comeback

While frontline indices like the Nifty 50 and Sensex have remained relatively range-bound amid global uncertainties, the Nifty Pharma index has risen over 9% since April, outperforming several sectoral peers. This resurgence is underpinned by steady U.S. demand, easing regulatory headwinds, and improving margins in generic formulations.

"Pharma stocks had been lagging for quite some time, and valuations had become attractive. Recent quarterly results have been a catalyst for the rebound," said Arun Malhotra, Portfolio Manager at CapVista Advisors.

Gland Pharma Leads the Charge

Gland Pharma has emerged as the top performer among major listed pharma companies, delivering a remarkable 28% gain since April. The injectable drug manufacturer has seen renewed investor interest following a management reshuffle and focus on China-driven growth via parent company Fosun.

“The recent quarterly numbers showed improving margins and a recovery in exports. Gland’s core strength in complex injectables and its low dependence on U.S. generics puts it in a strong position,” noted Asha Mehra, pharma sector analyst at Kotak Institutional Equities.

Cipla: A Consistent Climber

Cipla, India’s third-largest pharma company by market cap, has climbed nearly 17% since April, driven by strong U.S. sales, respiratory portfolio growth, and consistent domestic business.

Its latest earnings report beat Street estimates, with U.S. sales rising 23% year-on-year, led by sustained traction in Albuterol and peptide generics. Cipla's management also reiterated its commitment to a high-margin product pipeline, including specialty inhalers and biosimilars.

“We believe Cipla remains structurally well-placed for long-term growth, with optionality from its U.S. specialty pipeline,” stated Rahul Ghosh, VP Research, ICICI Securities.

Other Big Movers in Pharma Since April

Apart from Gland Pharma and Cipla, the following stocks have also registered significant upmoves since April 1:

What’s Fueling the Pharma Rally?

1. Earnings Beat: Q4 FY25 results for most pharma majors surpassed analyst expectations, especially in the U.S. generics segment.

2. Margin Expansion: Falling raw material costs and stable pricing in key markets have aided EBITDA margin recovery.

3. Regulatory Relief: The U.S. FDA has slowed down issuance of warning letters, especially for Indian plants, providing relief to exporters.

4. Defensive Play: In an environment marked by global interest rate uncertainties and geopolitical tension, investors are pivoting to defensives like pharma.

Caution Ahead: Are Valuations Still Attractive?

While the recent rally has provided short-term returns, some analysts are urging caution.

"Many stocks have seen PE re-ratings. Investors entering now must focus on companies with a differentiated pipeline, strong U.S. exposure, and minimal compliance risks," warned Neerav Shah, Senior Research Analyst at Axis Securities.

He also pointed out that currency volatility, delays in FDA inspections, or pricing pressure could dampen the momentum for certain players.

Investor Outlook: Is There More Juice Left?

Despite the impressive run-up, the long-term fundamentals of India’s pharma sector remain robust. Rising global healthcare spend, aging populations, and India’s role as a low-cost manufacturing hub continue to support the structural story.

Investors are advised to look for companies with strong R&D pipelines, clean regulatory track records, and diversified portfolios.

Top picks from analysts for fresh entry include:

• Sun Pharma – for its specialty focus

• Dr Reddy’s – for cost discipline and U.S. growth

• Biocon – for biosimilar upside

Long-term investors could still find value in staggered investments during market dips, especially with export-driven demand expected to remain strong over the next few quarters.

The recent rally in pharma stocks may have gone unnoticed by some retail investors, but the sector’s fundamentals suggest this could be more than just a flash in the pan. While select stocks have already run up sharply, opportunities still exist for discerning investors who are willing to play the long game