MUMBAI — Global brokerage Bernstein has initiated coverage on half a dozen Indian pharmaceutical companies, projecting upside potential of up to 40 percent as the sector benefits from technological integration and niche therapeutic advances.
The firm identified Zydus Lifesciences as its preferred stock among the coverage universe, signalling strong conviction in the Ahmedabad-based company's growth trajectory. The positive stance comes as Indian pharma companies navigate improving valuations after recent corrections and declining policy-related headwinds.
Bernstein's bullish view rests on three pillars: artificial intelligence deployment across drug discovery and manufacturing, innovation in specialised therapeutic segments, and a maturing domestic pharmaceutical ecosystem. These factors are expected to enhance operational efficiency and margin expansion for well-positioned players.
The development holds significance for India's pharmaceutical sector, which contributes approximately 3.5 percent to the country's GDP and employs over 2.7 million people. Bihar, home to several pharmaceutical manufacturing units in Hajipur and industrial clusters near Patna, stands to benefit from sectoral momentum through employment and ancillary business growth.
Market participants will closely monitor how these stocks respond to the brokerage's endorsement, particularly amid global supply chain realignments favouring Indian manufacturers. The coverage comes at a time when domestic pharmaceutical companies are expanding research capabilities while strengthening export competitiveness.