IT Department’s Crackdown On Political Donations: Are You Also Under Tax Scrutiny?

The Income Tax Department is investigating individuals who have made political donations of ₹5 lakh or more to lesser-known political parties in FY 2020-21. Tax officials have sent a list of questions to these donors to scrutinise their donations and ensure they are legitimate.

Money Laundering Concerns in Political Donations

In some cases, donors gave money via cheque, but the same amount was returned in cash, making it resemble money laundering. A commission of 1-3% was reportedly taken for these transactions.

Tax Exemption on Political Donations and IT Department’s Investigation

Under Section 80GGC of the Income Tax Act, individuals can claim full tax deductions for donations to political parties. There is no upper limit for such donations. In FY 2020-21, nearly 9,000 individuals donated ₹5 lakh or more and claimed tax exemptions.

Recently, the Income Tax Department warned that donations under Section 80GGC could be investigated. Salaried taxpayers were especially advised to keep records of donations made in the past 3 years.

How Section 80GGC is Being Misused

Section 80GGC allows 100% tax deduction for donations to political parties. However, some taxpayers have exploited this section by receiving the donated money back in cash after deducting a commission, which led to tax evasion.

As a result, the Income Tax Department has started sending summons under Section 131(1A) to individuals whose donations seem suspicious. Taxpayers must provide detailed information about their profession, bank accounts, income sources, and donations.

Who Is Being Summoned?

The summons are sent to those who have claimed deductions under Section 80GGC in FY 2020-21. The department is particularly interested in individuals who have claimed deductions disproportionate to their income. Some individuals have claimed deductions exceeding 50% of their income.

How to Respond to the Summons?

If you receive a summons, do not panic. It is not an assessment notice. Respond by filing a detailed reply with supporting evidence and justification for the donations.

If your response is not convincing, the department may reopen the assessment under Section 148 and levy taxes, interest, and penalties of up to 200%. For voluntary compliance, taxpayers can file an updated return under Section 139(8A) and pay the applicable additional tax (maximum 70%) instead of the 200% penalty.

What to Do If You Receive a Summon?

If you receive a summons from the Income Tax Department regarding your donations under Section 80GGC, here are some steps you can take:

  1. Stay Calm: Receiving a summons can be stressful, but it’s important to stay calm and not panic.
  1. Understand the Nature of the Summons: Remember that a summon is not an assessment notice. It is simply a request for information.
  1. Gather Supporting Documents: Collect all relevant documents that support your claims for tax deductions on your political party donations.
  1. File a Detailed Reply: Prepare a comprehensive response to the summons that includes explanations and justifications for your donations.
  1. Seek Professional Help if Needed: If you’re unsure about how to respond or need assistance with complex matters, consider consulting a tax professional or advisor.
  1. Be Prepared for Further Actions: Depending on how convincing your response is, the department may impose penalties or reopen assessments.
  1. Consider Voluntary Compliance Options: If you anticipate difficulties in justifying certain claims or want to rectify any mistakes proactively, explore voluntary compliance options available under tax laws.

By following these steps and being proactive in your approach towards addressing any concerns raised by authorities regarding your donation claims under Section 80GGC ,you can effectively navigate through this process while minimizing potential repercussions.

Conclusion

To avoid potential tax scrutiny, people who have claimed tax deductions for making political donations should maintain all of their records. Incorrect donation claims could lead to significant legal repercussions and penalties. If an error was made, prompt correction is advised.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks. Read all the related documents carefully before investing.

UPI Transactions Soar to New Highs in March

The Unified Payments Interface (UPI) in India has achieved a new milestone in March, showcasing the increasing adoption of digital payments in the country. Data released by the National Payments Corporation of India (NPCI) indicates a significant surge in both the volume and value of UPI transactions during the month, primarily attributed to year-end financial activities.

Record-Breaking UPI Transactions in March

In March, UPI recorded an impressive 19.78 billion transactions, amounting to a total value of ₹24,77,000 crore (US$ 289.26 billion). This represents a substantial 14% increase in transaction volume and a 13% rise in value compared to the figures from February. The surge is largely due to the culmination of financial year-end activities, which typically see increased transaction volumes.

Strong Growth in Fiscal Year 2025

Looking at the broader picture of Fiscal Year 2025, UPI transactions demonstrated remarkable growth. The total value of UPI transactions surged by 30% to reach ₹2,60,56,000 crore (US$ 3.04 trillion), a significant jump from the ₹1,99,96,000 crore (US$ 2.33 trillion) recorded in FY24. Similarly, the volume of transactions rose by 42%, increasing from 131.14 billion in FY24 to 185.85 billion in FY25.

Performance of Other Digital Payment Systems

The Immediate Payment Service (IMPS) also experienced growth in March, with transactions increasing by 14% to 462 million, and the value of these transactions growing by 19% to ₹6.68 trillion. In contrast, FASTag transactions saw a slight dip in volume by 1.3% to 379 million, although the value increased by 3% to ₹6,800 crore (US$ 794.11 million). The Aadhaar Enabled Payment System showed strong growth, with transaction volume rising by 20% to 113 million and value increasing by 25% to ₹30,539 crore (US$ 5.37 billion).

Industry Insights and Future Trends

Industry experts view the consistent growth across various digital payment platforms as a positive indicator of increasing consumer trust in these solutions. This trend also points towards deeper financial inclusion across the country as more people adopt digital methods for their financial transactions.

Conclusion

The record-breaking UPI transactions in March, coupled with the strong overall growth in digital payments during FY25, highlight the rapid adoption and increasing reliance on digital financial solutions in India. This trend signifies a growing trust in the digital ecosystem and bodes well for further financial inclusion in the country.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Muthoot Finance Share Price In Focus After Moody’s Ratings Upgrade

Muthoot Finance share price is in focus on Thursday. This follows news of Moody’s Ratings, which has upgraded the company’s long-term corporate family rating to Ba1 from Ba2, with a stable outlook. This upgrade reflects Moody’s assessment of Muthoot’s strong financial health, supported by its leading position and long-standing experience in India’s gold financing sector.

Profitability Driving Muthoot Finance Share Price

A key strength highlighted is Muthoot’s profitability, which Moody’s considers the best among rated Indian finance companies. Strong net income, driven by high net interest margins and low credit costs in its gold financing business, has boosted the company’s capital levels. Its tangible common equity to total managed assets stood at a healthy 23.3% at the end of December 2024.

Concerns Over Non-Gold Subsidiaries

However, Moody’s also noted some concerns regarding Muthoot’s non-gold financing subsidiaries, which have grown rapidly and experienced a slight decline in asset quality. The company’s consolidated problem loans rose to 4.1% in December 2024, up from 3.0% in March 2024, and credit costs more than doubled due to increased delinquencies in microfinance loans.

Future Outlook and Potential Rating Changes

While Moody’s will monitor Muthoot’s ability to manage these problem loans, they expect the impact on the overall portfolio to be moderate, as gold financing remains the primary focus. Muthoot’s funding relies mainly on bank borrowings, but it has been diversifying to more stable and long-term sources. Despite modest liquidity, the short-term nature of its loans and access to funding markets mitigate risks.

Muthoot Finance Raises US$250 Million Through Bond Issuance

Muthoot Finance Limited has successfully raised $250 million by issuing US dollar-denominated senior secured notes. These bonds, which are due in 2029 and carry a coupon rate of 6.375%, were issued under Muthoot Finance’s $2 billion global medium-term note program. Deutsche Bank AG, Singapore Branch, and Standard Chartered Bank acted as the managers for this offering. The newly issued notes have been listed on NSE IFSC Ltd., located in GIFT City, India.

Conclusion

Moody’s upgrade of Muthoot Finance’s rating to Ba1 reflects confidence in its core gold financing business and profitability. While concerns exist regarding non-gold subsidiaries, the bond issuance further strengthens its financial position. Overall, Muthoot Finance appears well-positioned in the market.

At 1.37 PM, Muthoot Finance share price was up 0.60% and was trading at ₹2,356.75.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks. Read all the related documents carefully before investing.

Avanti Feeds Share Price In Focus After US Tariffs

Avanti Feeds share price fell by nearly 18% on Thursday. This occurred after US President Donald Trump imposed a 27% reciprocal tariff on Indian goods. This development has also led to a broader decline in shrimp stocks across the country, including Apex Frozen Foods, which witnessed a 6% decline.

Impact on Avanti Feeds Share Price

Avanti Feeds share price reached an intraday low of ₹727. This represents a decline of 18.27%. Several news reports have highlighted the severity of these new tariffs. The combined tariff rate, including anti-dumping and countervailing duties, reaches 45%. This high rate could effectively halt Indian shrimp exports to the US.

India’s Shrimp Exports

India’s total marine exports amount to approximately ₹60,000 crore annually. Shrimp alone accounts for about ₹50,000 crore of this. The US imports about ₹22,000 crore worth of marine products from India each year. Previously, shrimp imports to the US faced anti-dumping duties between 2% and 4%. Countervailing duties added another 5.8%.

New Tariff Details and Competitor Impact

The new Trump tariff adds a 10% baseline tariff. Coupled with the 27% reciprocal tariff, this creates a severe burden on Indian exporters. Other shrimp-exporting countries also face high tariffs. Vietnam’s reciprocal tariff is set at 46%. Indonesia’s is 32%, and Ecuador’s is 10%. As per news reports, other countries might also suspend their exports due to the tariffs.

Potential Consequences

As per news reports, US supermarkets could face supply shortages within 24 hours. This could lead to temporary price increases for seafood. However, once existing stocks are depleted, these higher prices might not be sustainable. At 13.03 PM, Avanti share price was down 16.89% and was trading at ₹740.30.

Conclusion

President Trump’s new tariffs have significantly impacted Indian shrimp stocks. The increased costs could severely disrupt exports to the US, affecting both Indian exporters and potentially causing supply issues and price fluctuations in the US market.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks. Read all the related documents carefully before investing.

SPML Infra Share Price In Focus After Its Partnership With US-Based Energy Vault

SPML Infra Limited share price is in focus after its decision to establish a licensing and royalty agreement with Energy Vault. Energy Vault is a well-known company specialising in energy storage solutions. This agreement marks a significant step for SPML Infra into the energy infrastructure sector.

Details of SPML’s Licensing Agreement

SPML Infra will be responsible for manufacturing and deploying Energy Vault’s B-Vault Battery Energy Storage Technology Platform in the Indian market. The agreement spans 10 years and covers over 30 GWh of energy storage. This partnership is expected to accelerate the adoption of Energy Vault’s B-VAULT BESS technology.

Production and Market Strategy

SPML Infra and Energy Vault have established initial production targets. They aim to produce a minimum of 500 MWh of battery storage within the next 12 months.

Over the following 10 years, the targeted minimum BESS volume is 30-40+ GWh. This collaboration will leverage the cost benefits of local manufacturing. It will also utilise SPML Infra’s existing expertise in the Indian market. The agreement includes upfront licensing fees for Energy Vault and recurring royalty revenue streams.

Energy Vault’s B-Vault Technology

The B-Vault system is designed to meet short to medium-duration energy storage needs. It is a fully integrated suite of battery energy storage solutions. The system emphasises reliability, flexibility, and availability. Its innovative enclosure design allows customers to choose from various battery and inverter suppliers.

B-Vault offers both AC-coupled and DC-coupled configurations, providing flexibility for different projects. The technology includes advanced safety and cybersecurity features. It also natively integrates with Energy Vault’s VaultOS EMS. B-Vault aims to provide competitive project pricing to meet customer requirements.

Growth of India’s Energy Storage Market

According to the National Electricity Plan (NEP) 2023 by the Central Electricity Authority (CEA), India’s energy storage capacity requirement is projected to be 236.2 GWh by 2031-32. The estimated market size for this is approximately $57 billion. By 2047, the market is expected to reach $443 billion. Based on news reports, the energy storage market in India is projected to grow at a CAGR of over 25% until 2035. This growth is anticipated due to increasing demand for energy storage. Government policies mandating at least 10% battery energy storage capacity for new solar and wind power projects are also driving this growth.

Conclusion

The collaboration between SPML Infra and Energy Vault represents a significant advancement for the energy storage landscape in India. By combining Energy Vault’s advanced technology with SPML Infra’s local market understanding, this agreement is poised to accelerate the manufacturing and deployment of critical battery storage solutions, thereby supporting India’s expanding renewable energy sector.

At 12.04 PM, SPML Infra share price was up 5% and was trading at ₹175.80.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks. Read all the related documents carefully before investing.

Know Which Indian Construction and Mineral Stocks Could Be Affected by U.S. Tariffs Here!

The Trump administration’s proposed tariffs on Indian imports are poised to have a significant impact on India’s construction and mineral sectors. By imposing a 27% tariff on goods like steel, aluminium, and construction materials, the U.S. government aims to protect American industries, but the move could disrupt global trade, particularly affecting Indian exporters.

Overview of Trump’s Tariff Plan

Under Trump’s proposal, a 27% tariff would be levied on a wide range of imports from India, including steel, aluminium, and various construction materials. This rate was calculated based on the cumulative impact of tariffs and non-tariff barriers that other countries, including India, impose on U.S. goods.

The tariffs would directly target Indian exports in sectors critical to the global construction supply chain, such as steel and aluminium.

Effect of US Tariffs On India’s Steel and Aluminum Exports

India is a key exporter of steel and aluminium globally, and the U.S. is an important market. While India’s steel exports to the U.S. make up a small fraction of total steel exports, around 5%, the aluminium sector faces a more significant risk. Nearly 12% of India’s aluminium exports are destined for the U.S. market.

The proposed tariffs would directly affect major Indian companies such as Tata Steel, JSW Steel, and Jindal Steel and Power Limited (JSPL). As steel and aluminium prices in the U.S. rise due to the tariff, Indian companies would face reduced demand and competitive disadvantages.

The U.S. is already a smaller player in India’s steel export market, with a 25% decline in imports from the U.S. in recent years. If tariffs are implemented, Indian producers would struggle further, especially as domestic prices remain low. Additionally, global steel prices are already under pressure, and tariffs would likely exacerbate these issues.

Rising Costs for U.S. Construction Materials

In 2023, the U.S. residential construction sector spent US$13 billion on imported materials, which accounted for 7% of the total US$184 billion spent on new housing materials. A significant portion of these materials—around 27%—came from countries like India.

The imposition of a 27% tariff would directly raise the cost of these imports, potentially driving up construction costs in the U.S. This increase would affect both new single-family homes and multifamily housing projects.

Indian companies such as Hindalco Industries, which supply essential materials to the U.S., could see reduced demand. The higher prices could dampen sales volumes, leading to lower revenues and profitability for Indian exporters in the construction sector.

Impact of US Tariffs On India’s Mineral and Lime Sectors

The proposed tariffs also extend beyond steel and aluminium, potentially impacting other important sectors like minerals and lime. Companies involved in these sectors, such as Larsen & Toubroand SAIL, could see reduced demand as U.S. construction companies may turn to other markets with more favourable tariff conditions.

Moreover, as U.S. prices for imported materials rise, Indian businesses in the mineral sector would face increasing pressure to diversify their customer base and find alternative markets for their products. However, the cost burden and competitive challenges could limit their ability to successfully do so, further impacting their growth prospects.

Conclusion

Trump’s proposed 27% tariff on Indian imports would significantly affect India’s construction and mineral sectors. While there may be opportunities for India to negotiate tariff reductions, the overall impact could be lasting, reshaping global trade dynamics and challenging the growth prospects of Indian exporters.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

India’s PMI Registers High Growth; However, Exports Slump

Despite a slight slowdown in export growth, India’s manufacturing sector achieved its highest performance in 8 months. According to the HSBC India Manufacturing Purchasing Managers’ Index (PMI) released on Wednesday, a sharp rise in new orders and production drove this improvement.

India’s PMI Shows Substantial Growth

The seasonally adjusted HSBC India Manufacturing PMI rose to 58.1 in March, up from 56.3 in February. This increase indicates a significant improvement in the sector’s health, surpassing its long-run average. In PMI terms, a score above 50 indicates expansion, while below 50 signals contraction.

New Orders Drive Growth In India’s PMI

The improvement in PMI was primarily driven by a stronger contribution from the New Orders Index. This index reached its highest level since July 2024, signalling robust customer interest, favourable demand conditions, and successful marketing initiatives.

Production Ramp-Up

As a result of the surge in demand, firms increased production volumes by a sharp margin. This growth rate was the strongest in 8 months and was above the historical average. Companies scaled up production in the final quarter of the 2024/25 fiscal year, reflecting a significant boost in sector activity.

Export Sales Face Slight Slowdown

Although domestic sales expanded sharply, growth in international sales softened, reaching a 3-month low. However, demand from regions like Asia, Europe, and the Middle East kept export orders strong, preventing a major decline.

Manufacturers Tapping Into Inventories

Surging demand caused manufacturers to draw from their inventories, leading to the fastest depletion of finished goods stocks since January 2022. This marked the 4th consecutive month of inventory decline. In response, firms increased input purchases at the quickest rate in seven months, which was well above the average for the series.

Growth of Pre-Production Inventories Drives India’s PMI

In line with growing demand, companies also saw pre-production inventories swell at the fastest pace in five months. This signals the expectation of continued demand in the upcoming months as firms prepare to meet consumer needs.

Conclusion

India’s manufacturing sector showed strong growth in March, fueled by an increase in new orders and production. Despite a slight dip in exports, overall demand remained robust, positioning the sector for continued growth.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Top Gainers and Losers on April 2, 2025: Tata Consumer Products and Zomato Led Gainers

On April 2, 2025, the BSE Sensex was up 0.78% at 76,617.44, while the Nifty 50 was up 0.72% at 23,332.35. The top gainers and losers for the day are:

Top Gainers of the Day

Symbol LTP (₹) Change%
TATACONSUM 1,060.80 6.91
ZOMATO 211.7 4.8
TITAN 3,102.30 3.86
INDUSINDBK 703 2.97
TECHM 1,424.50 2.1
  • Tata Consumer Products

The stock opened at ₹1,018.00, reached a high of ₹1,073.15, and closed at ₹1,060.80, marking a 6.91% gain.

  • Zomato

Opening at ₹203.5, the stock hit a high of ₹212.6 before closing at ₹211.7, up 4.8%, supported by improved performance and investor sentiment around food delivery growth.

  • Titan

The stock opened at ₹3,011.00, peaked at ₹3,105.00, and closed at ₹3,102.30, reflecting a 3.86% rise.

  • IndusInd Bank

Opening at ₹682.7, the stock reached ₹708.4 and closed at ₹703.00, gaining 2.97%, on the back of stable performance and growth in the banking sector.

  • Tech Mahindra

The stock opened at ₹1,397.15, hit ₹1,426.05, and closed at ₹1,424.50, up 2.1%, bolstered by a positive outlook in the IT and tech services industry.

Top Losers of the Day

Symbol LTP %chng
BEL 282.45 -3.27
NESTLEIND 2,206.70 -1.22
ULTRACEMCO 11,275.00 -0.91
BAJAJFINSV 1,921.35 -0.81
POWERGRID 287.05 -0.78
  • BEL (Bharat Electronics)

The stock opened at ₹289.9, reached a high of ₹290.75, and closed lower at ₹274.45, down from ₹292. The stock is facing some pressure amid concerns regarding defense procurement delays, but it remains a key player in India’s defense sector.

  • Nestle India

The stock opened and closed at ₹2,230.00, with a low of ₹2,148.00, slightly below the previous close of ₹2,234.00.

  • UltraTech Cement

The stock opened at ₹11,360.00, peaked at ₹11,360.00, and closed lower at ₹11,178.10, down from ₹11,378.65. UltraTech Cement’s stock price saw some correction after recent strong price gains, though the company is poised for growth with robust demand in construction and infrastructure.

  • Bajaj Finserv

Opening at ₹1,946.30, the stock reached ₹1,963.50 before closing at ₹1,920.95, slightly below the previous close of ₹1,937.10.

  • PowerGrid

The stock opened at ₹286.85, hit a high of ₹289.75, and closed lower at ₹284.5, slightly down from ₹289.3. PowerGrid’s stock price has been influenced by recent regulatory updates and the ongoing development of India’s transmission infrastructure. The company is also part of India’s push towards renewable energy integration.

Conclusion

The top gainers and losers today highlight the ever-changing nature of the stock market, shaped by factors such as corporate earnings, economic reports, and global influences. Investors should remain informed and carefully assess market trends before making any investment choices.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks. Read all the related documents carefully before investing.

Trent Share Price Rallies On Wednesday Upon Reaching A Milestone Of 1000+ Stores

Trent share price experienced a significant rise on Wednesday. It was up 1.92% and was trading at ₹5,6385.95. This surge followed an announcement from the company. Trent revealed it has surpassed 1,000 large-format fashion stores. This includes 248 Westside stores and 757 Zudio stores.

Extensive Customer Reach and Brand Portfolio

The Westside and Zudio brands have collectively served over 100 million customers. This reach spans across 230 cities in India. Trent is a subsidiary of the Tata Group. The company operates a diverse portfolio of retail brands.

Westside is recognised as a leading fashion chain in India. Zudio caters to value-conscious consumers. Trent Hypermarket operates under the Star banner. It focuses on groceries and daily essentials. Samoh is a high-end occasion wear brand.

Trent’s Financial Performance in Q3 FY25.

Trent reported a substantial increase in net profit. The net profit rose by 34%. It reached ₹496.54 crore. This is on a consolidated basis. The company also saw a 34.33% increase in revenue from operations. The revenue reached ₹4,656.56 crore. These figures are for Q3 FY25. They are compared to Q3 FY24.

Conclusion

Trent share price rally reflects investor confidence in its expansion strategy. The company’s growing store network and strong financial performance are key factors. The successful expansion of Zudio and Westside contributes significantly to its growth. The company demonstrates strong financial health.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks. Read all the related documents carefully before investing.

Best Pharma Stocks in India in April 2025 – Based on 5 Year CAGR

India is the largest global provider of generic drugs, renowned for affordable vaccines and medications. The Indian pharmaceutical industry ranks third in production volume, growing at a 9.43% CAGR over the past nine years. It leads in USFDA-compliant facilities and supplies 50% of global vaccines, 40% of U.S. generics, and 25% of U.K. medicines.

The Indan pharmaceutical sector includes 3,000 companies and 10,500 manufacturing units, contributing 1.72% to India’s GDP. India also supplies over 80% of the world’s antiretroviral drugs for AIDS. Known as the “pharmacy of the world,” it ranks third globally in volume and 14th in value. The Indian pharmaceutical market is expected to reach US$ 130 billion by 2030, with the global pharmaceutical market exceeding US$ 1 trillion in 2023.

Let’s explore the top pharma stocks in India for April 2025, ranked by their 5-year CAGR performance, 1-year return, and market capitalisation.

Top Pharma Stocks in India in April 2025 – 5yr CAGR Basis

Name Market Cap ( in ₹ crore) 5Y CAGR (%)
Sun Pharmaceutical Industries Ltd 4,07,491.05 37.66
Cipla Ltd 1,16,640.10 28.4
Torrent Pharmaceuticals Ltd 1,07,757.64 26.59
Dr Reddy’s Laboratories Ltd 95,995.82 13.23
Lupin Ltd 89,276.73 18.75

Note: The best pharma stocks list here is as of April 02, 2025. The stocks are sorted based on the 5Y CAGR.

Overview of Best Pharma Stocks in India

1. Sun Pharmaceutical Industries Ltd. 

Sun Pharma is the world’s fourth-largest specialty generic pharmaceutical company, generating global revenues of US$ 5.8 billion. With 41 manufacturing facilities, the company delivers high-quality, affordable medications that are trusted by healthcare providers and patients in over 100 countries worldwide.

In Q3 FY 2024-25, the company achieved a revenue of ₹6,191.81 crore, showing a strong growth compared to ₹5,127.71 crore in Q2 of the same financial year. The company’s net profit also saw substantial improvement, reaching ₹1,181.05 crore in Q3 FY 2024-25, up from ₹863.29 crore in Q2 FY 2024-25.

Key metrics:

  • Earning per Share (EPS): ₹13.13
  • Return On Equity (ROE): 13.35%

2. Cipla Ltd

Cipla was founded in 1935 as Chemical Industrial & Pharmaceutical Laboratories Ltd. It adopted its current name in 1984. The company offers a diverse portfolio with over 1,500 products in the market. Cipla operates through three main divisions: APIs, respiratory, and Cipla Global Access. India is its largest market, followed by Africa and North America. In FY24, the company’s total revenue reached ₹25,455 crore (US$ 3.06 billion).

For the period ending December 2024, Cipla reported a revenue of ₹4,970.88 crore, up from ₹4,775.03 crore in September 2024. For the full financial year 2023-24, the company recorded a total revenue of ₹16,574.34 crore. Its net profit for December 2024 was ₹1,438.15 crore, an increase from ₹1,178.16 crore in September 2024. For FY 2023-24, Cipla’s net profit reached ₹4,077.25 crore.

Key metrics:

  • Earning per Share (EPS): ₹58.33
  • Return On Equity (ROE): 16.17%

3. Torrent Pharmaceuticals Ltd

Torrent Pharma is a leading Indian pharmaceutical company. Known for pioneering niche marketing in India, it has expanded through key acquisitions, including Elder Pharma, Zyg Pharma, and Unichem. The company also made international moves, entering the German market in 2005 and acquiring U.S. assets in 2015. It specialises in making products for women’s health and cardiovascular medicines, among others.

In Q3 FY 2024-25, Torrent Pharma reported a revenue of ₹2,810 crore, reflecting a 2.82% year-on-year growth. The company’s net income increased by 13.54%, reaching ₹503 crore. Diluted earnings per share (EPS) stood at ₹14.88, up by 13.59%. The net profit margin improved to 17.91%, a rise of 10.42%, while operating income grew by 8.99% to ₹715 crore.

Key metrics:

  • Earning per Share (EPS): ₹53.89
  • Return On Equity (ROE): 24.24%

4. Dr. Reddy’s Laboratories Ltd

Founded in 1984 and headquartered in Hyderabad, India, Dr. Reddy’s is a global pharmaceutical company focused on providing affordable and innovative medicines. With a diverse portfolio including APIs, generics, biosimilars, and OTC products, it operates in key markets like the USA, India, and Europe, while also prioritizing sustainability and ESG initiatives.

For the period ending December 2024, Dr. Reddy’s reported a revenue of ₹5,015 crore, down from ₹6,696.30 crore in September 2024. The total revenue for FY 2023-24 was ₹19,483.80 crore. The company’s net profit for December 2024 was ₹849.40 crore, a decline from ₹1,882.10 crore in September 2024, while the net profit for FY 2023-24 reached ₹4,342 crore.

Key metrics:

  • Earning per Share (EPS): ₹62.12
  • Return On Equity (ROE): 19.26%

5. Lupin Ltd

Lupin is a globally recognized pharmaceutical company headquartered in Mumbai, focused on innovation. The company develops and markets a broad range of branded and generic medicines, biotechnology products, and active pharmaceutical ingredients (APIs) across more than 100 markets, including the U.S., India, South Africa, APAC, LATAM, Europe, and the Middle East.

For the period ending December 2024, Lupin reported a revenue of ₹4,208 crore, slightly up from ₹4,106.20 crore in September 2024. The total revenue for FY 2023-24 was ₹14,666.50 crore. The company’s net profit for December 2024 was ₹984.67 crore, an increase from ₹807.76 crore in September 2024, while the net profit for FY 2023-24 was ₹2,326.09 crore.

Key metrics:

  • Earning per Share (EPS): ₹67.20
  • Return On Equity (ROE): 13.95%

Top Pharma Stocks in India in April 2025 – 1 year Return Basis

Name 1Y Return (%)
Sun Pharmaceutical Industries Ltd 37.66
Cipla Ltd 28.4
Torrent Pharmaceuticals Ltd 26.59
Dr Reddy’s Laboratories Ltd 13.23
Lupin Ltd 20.42

Note: The best pharma stocks list here is as of April 02, 2025. The stocks are sorted based on the basis of 1 year return.

Top Pharma Stocks in India in April 2025 – Market Cap Basis

Name Market Cap ( in ₹ crore)
Sun Pharmaceutical Industries Ltd 4,07,491.05
Cipla Ltd 1,16,640.10
Torrent Pharmaceuticals Ltd 1,07,757.64
Mankind Pharma Ltd 1,01,415.93
Dr Reddy’s Laboratories Ltd 95,995.82

Note: The best pharma stocks list here is as of April 02, 2025. The stocks are sorted based on market capitalisation.

Key Factors to Consider Before Investing in Pharma Stocks in India

  1. Business Model: Understand whether the company sells finished drugs or APIs, its market focus (regulated or low-regulation), and its R&D spending compared to peers. Check for dependence on a few products for sales or profitability.
  2. Therapeutic Focus: Companies with a diverse therapeutic focus, especially in high-growth areas like dermatology, oncology, ophthalmology, and respiratory, offer better growth and margin prospects.
  3. Research Focus: Increasing R&D spending drives future growth. Look for promising research pipelines, advanced-stage products, and licensing opportunities.
  4. US Generic Filings: A strong pipeline for US market filings, especially with exclusivity periods, boosts revenue. Delays or litigation pose risks.
  5. US FDA Inspections: Regular plant inspections with favorable outcomes signal strong compliance, while adverse observations can result in penalties or halted sales.

Conclusion

Although pharma stocks present attractive investment prospects, it’s crucial to align them with your financial objectives, risk appetite, and investment timeline. Consulting a financial advisor can provide personalised guidance to ensure your investments meet your unique requirements.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks. Read all the related documents carefully before investing.