Indian Pharma Stocks: Why R&D-Led Companies Could Become Multibaggers

Pharma remains a major overweight theme, with growing interest in young companies focused on innovation, R&D-driven formulations, CDMO and advanced markets such as the US and Europe. Abhay Agarwal, Founder and Fund Manager, Piper Serica, believes these businesses could become India’s next set of multibaggers as their product pipelines mature. The focus is on complex therapies, strong cash flows, internal funding of CapEx and limited leverage rather than traditional generics. With global markets opening opportunities for Indian pharma companies, strong product pipelines and expanding manufacturing capabilities could support long-term earnings growth and create significant value for investors.