Stocks

Best Healthcare Stocks Delivering Consistent Profit Growth Over the Years

Healthcare stocks show varied returns across one month to five years. Laurus Labs, Torrent Pharmaceuticals, Sun Pharma and Max Healthcare stand out for notable long-term performance.

Written By : Pardeep Sharma
Reviewed By : Pranchal Srivastava

Key Takeaways

  • Laurus Labs recorded the highest three-year return at 360.76% among the featured healthcare stocks.

  • Torrent Pharmaceuticals delivered a strong 221.28% five-year return.

  • Lupin reported the highest ROCE at 28.42% among the featured companies.

India’s healthcare sector has several established companies with strong long-term market performance. Sun Pharmaceutical, Divi’s Laboratories, Torrent Pharmaceuticals, Apollo Hospitals, Cipla, Zydus Life Science, Lupin, Max Healthcare Institute, Mankind Pharma and Laurus Labs have each delivered notable returns across different periods. Their valuation ratios and capital efficiency also show clear differences, which makes each stock distinct in terms of market position and financial profile.

Sun Pharmaceutical

Sun Pharmaceutical remains one of the largest names in the healthcare space, with a market cap of Rs.4,65,399 crore. Its share price stands at Rs.1,939.70, while its PE ratio is 38.67 against an industry PE of 25.91. The company has delivered 0.23% in one month, 3.59% in three months, 20.62% in one year, 68.65% in three years and 144.53% in five years.

Its PB ratio stands at 5.61, with a dividend yield of 0.82%. Sun Pharma has an ROE of 14.38% and an ROCE of 17.94%. The five-year return shows the stock’s strong long-term wealth creation record.

Divi’s Laboratories

Divi’s Laboratories has shown impressive momentum across shorter periods. The stock has gained 23.24% in one month, 25.48% in three months and 40.60% in one year. Its three-year return stands at 124.94%, while the five-year return is 70.03%.

The stock trades at Rs.8,423.00, with a market cap of Rs.2,23,604 crore. Its PE ratio is 75.10, compared with an industry PE of 35.60. The PB ratio stands at 13.11, while the dividend yield is 0.36%. Divi’s Laboratories has an ROE of 11.79% and an ROCE of 18.96%.

Torrent Pharmaceuticals

Torrent Pharmaceuticals has delivered one of the strongest five-year performances among the listed healthcare stocks. The company has posted -0.81% in one month, 7.64% in three months and 34.50% in one year. Its three-year return is 139.45%, while its five-year return reaches 221.28%.

The stock price is Rs.4,865.50, with a market cap of Rs.1,85,068 crore. Torrent Pharma has a PE ratio of 86.72 and a PB ratio of 22.23. Its dividend yield stands at 0.69%, while its ROE is 24.16% and ROCE is 9.06%.

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Apollo Hospitals

Apollo Hospitals has also produced strong long-term returns. The stock has delivered -0.88% in one month, 8.43% in three months, 20.73% in one year, 78.03% in three years and 115.70% in five years.

Apollo Hospitals has a market cap of Rs.1,26,121 crore and a share price of Rs.8,771.50. Its PE ratio is 64.05, while the PB ratio is 13.53. The company has a dividend yield of 0.22%, an ROE of 12.53% and an ROCE of 19.79%.

Cipla 

Cipla has produced moderate long-term growth, with returns of 1.60% in one month, 12.08% in three months, -2.81% in one year, 16.17% in three years and 60.26% in five years. Its PE ratio stands at 35.15, while its PB ratio is 3.43. The company has a dividend yield of 0.89%, an ROE of 15.50% and an ROCE of 14.88%.

Zydus Life Science

Zydus Life Science has delivered -0.93% in one month, 19.14% in three months, 19.31% in one year, 73.31% in three years and 97.78% in five years. Its PE ratio is 21.82, with a PB ratio of 4.12. Its dividend yield is 0.09%, while ROE stands at 17.34% and ROCE at 19.24%.

Lupin 

Lupin has delivered -9.33% in one month, 0.33% in three months, 16.38% in one year, 108.53% in three years and 102.10% in five years. Its PE ratio is 18.74, and its PB ratio is 4.63. The dividend yield is 0.79%, while its ROE is 13.47% and ROCE is 28.42%, the highest ROCE among these companies.

Max Healthcare

Max Healthcare Institute has delivered -5.23% in one month, 1.17% in three months, -16.88% in one year, 95.64% in three years and 245.83% in five years. Its PE ratio is 72.20, PB ratio is 9.69, dividend yield is 0.19%, ROE is 14.89% and ROCE is 12.70%.

Mankind Pharma 

Mankind Pharma has posted -4.09% in one month, -1.90% in three months, -0.64% in one year, 31.51% in three years and 70.27% in five years. Its PE ratio stands at 48.70, with a PB ratio of 6.18. The company has a dividend yield of 0.04%, an ROE of 20.28% and an ROCE of 13.78%.

Laurus Labs

Laurus Labs has delivered the strongest recent performance in this group, with 19.43% in one month, 44.98% in three months, 120.88% in one year, 360.76% in three years and 159.83% in five years. Its PE ratio is 92.47, PB ratio is 19.02, dividend yield is 0.11%, ROE is 4.09% and ROCE is 19.67%.

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Strong Names Across Different Time Frames

The healthcare sector presents several companies with notable long-term records. Laurus Labs leads on three-year returns, Torrent Pharmaceuticals shows a powerful five-year record, while Max Healthcare also has a strong five-year figure. Sun Pharma combines scale with steady long-term returns, while Lupin stands out for its 28.42% ROCE. These figures highlight a sector with varied growth, valuation and capital-efficiency profiles.

FAQs

1. Which healthcare stock has the highest three-year return?

Laurus Labs has the highest three-year return at 360.76%.

2. Which healthcare stock has the highest five-year return?

Max Healthcare Institute has the highest five-year return at 245.83%.

3. Which company has the highest ROCE?

Lupin has the highest ROCE at 28.42%.

4. Which stock has the largest market capitalisation?

Sun Pharmaceutical has the largest market cap at Rs.4,65,399 crore.

5. Which healthcare stock has the lowest PE ratio?

Lupin has the lowest PE ratio at 18.74 among the featured stocks.

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