4 Pharma stocks to benefit as India’s CDMO market is expected to reach $45 billion by 2029

India’s CDMO (Contract Development and Manufacturing Organization) market is projected to grow from $15.63 billion in 2023 to $44.63 billion by 2029. This rapid growth is driven by cost advantages, technological advancements, and a strong regulatory framework. 

Offering 20 percent lower costs than China, India has become a key player in global pharmaceutical outsourcing. 

The rising demand for diversified supply chains has led to a 50 percent surge in RFPs for Indian CDMOs in 2024. The country is also investing in high-growth therapies like cell and gene therapy (CAGR 45 percent), antibody-drug conjugates (CAGR 25 percent), and nucleic acid therapeutics (CAGR 36 percent). 

With the global CDMO market projected to hit $465.14 billion by 2032, India is emerging as a strong alternative to China, backed by a skilled workforce and government initiatives like PLI schemes to boost domestic production. Positioned for rapid expansion, India is set to reshape global pharmaceutical manufacturing. 

Following are a few pharma stocks in focus as India’s CDMO market targets $44.63 billion by 2029: 

1. Divi’s Laboratories Limited 

With a market cap of Rs. 1.48 lakh crores, the stock has moved up by about 1.6 percent to Rs. 5,756.55 on BSE, during Thursday’s trading session. 

Divi’s Laboratories is developing a three-unit project within a 500-acre manufacturing facility in Kakinada, Andhra Pradesh. Phase I, spanning 200 acres, commenced commercial operations in January 2025, reinforcing the company’s position in intermediates and custom synthesis solutions. 

In Q3 FY25, the company’s revenue from operations increased by around 25 per cent to Rs. 2,319 crores, while the net profit grew by nearly 64.5 percent YoY to Rs. 589 crores. 

2. Laurus Labs Limited 

With a market cap of Rs. 30,880.3 crores, the stock has moved up by about 0.3 percent to Rs. 586.1 on BSE, during Thursday’s trading session.

The company’s CDMO segment achieved its highest quarterly sales in the past eight quarters, nearing Rs. 400 crore. On a nine-month basis, the segment recorded a 33 percent growth, driven by strong demand and the scaling up of new assets. 

In Q3 FY25, the company’s revenue from operations increased by around 18.4 percent to Rs. 1,415 crores, while the net profit grew by nearly 304.3 percent YoY to Rs. 93 crores. 

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3. Jubilant Pharmova Limited 

With a market cap of Rs. 13,780.2 crores, the stock has moved up by about 3.2 percent to Rs. 893.3 on BSE, during Thursday’s trading session. 

Under the CDMO Sterile Injectables, the company is a leading contract manufacturer in North America, and serves as the top global innovator pharma company. In Q3 FY25, it introduced new CDMO services catering to biotech and large pharmaceutical companies. 

In Q3 FY25, the company’s revenue from operations increased by around 8.6 percent to Rs. 1,822 crores, while the net profit grew by nearly 53 percent YoY to Rs. 101 crores. 

4. Dr Reddy’s Laboratories Limited 

With a market cap of Rs. 92,439.6 crores, the stock has moved up by about 2 percent to Rs. 1,125 on BSE, during Thursday’s trading session. 

In 2024, Aurigene Pharmaceutical Services, a CRDMO arm of Indian pharmaceutical major Dr Reddy’s, established a biologics facility in Hyderabad’s Genome Valley to manufacture therapeutic proteins, antibodies, and viral vectors. 

Operational since June 2024, the facility offers end-to-end services, from clinical research to commercial manufacturing. 

In Q3 FY25, the company’s revenue from operations increased by around 16 percent YoY to Rs. 8,381 crores, while the net profit grew marginally by nearly 2 percent YoY to Rs. 1,404 crores. 

Written by Shivani Singh

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