Regardless of market cycles or economic conditions, pharma stocks have consistently demonstrated stability, making them a preferred choice for investors seeking both defensive characteristics and sustainable growth.
Here’s how the Nifty Pharma index has performed across different time frames:
| Time frame | Return % |
| 1 Week | -0.47% |
| 1 Month | -1.86% |
| 3 Months | 7.23% |
| 6 Months | 7.02% |
| Year-to-Date (Since Jan 1) | 6.82% |
| 1 Year | 9.70% |
| 3 years | 82.57% |
| 5 years | 70.07% |
Pharma Sector Outlook
The outlook for the pharmaceutical sector remains strong. According to global brokerage Bernstein, the Indian biopharma industry is expected to grow nearly four-fold, expanding from USD 57 billion currently to USD 195 billion by 2035.
The brokerage also expects the top 10 pharmaceutical companies to command nearly 50 per cent of the domestic market by 2030.
According to the brokerage, current valuations largely factor in steady domestic growth and continued price erosion in the US generics market.
However, the market is yet to fully price in key growth catalysts such as incremental “Rainmaker” revenues, accelerating expansion across Europe and other international markets (EMEA), and margin improvements driven by AI-led productivity gains.
Bernstein believes the sector has likely bottomed out in FY26 and expects a meaningful earnings acceleration between FY27 and FY31, which remains insufficiently reflected in current stock prices.
Zydus Lifesciences Share Price Target (Top Pick)
Bernstein has maintained an ‘Outperform’ rating on Zydus Lifesciences with a target price of Rs 1,457. This implies an upside potential of approximately 34 per cent from the current market price of Rs 1,084.60.
Lupin Share Price Target
The brokerage has also retained its ‘Outperform’ rating on Lupin. With the stock currently trading at Rs 2,267 and a market capitalisation of Rs 1.04 lakh crore, Bernstein expects the stock to gain around 19 per cent from current levels to a target price of Rs 2,707.
Sun Pharma Share Price Target
Bernstein expects Sun Pharma to outperform its peers and has assigned a target price of Rs 2,235. This indicates a potential upside of nearly 24 per cent from the current market price of Rs 1,800.50.
Aurobindo Pharma Share Price Target
Aurobindo Pharma is rated ‘Market-Perform’ by Bernstein. The stock currently trades at Rs 1,402, while the brokerage’s target price of Rs 1,498 suggests a modest upside of around 6 per cent.
Mankind Pharma Share Price Target
Bernstein has an ‘Underperform’ rating on Mankind Pharma. The stock currently trades at Rs 2,378.20, while the target price of Rs 2,057 implies a potential downside of approximately 13 per cent.
Biocon Share Price Target
Biocon is also rated ‘Underperform’ by the brokerage. With the stock trading at Rs 418.25 and a target price of Rs 326, Bernstein sees a potential downside of around 22 per cent from current levels.
