Archive · 19 Nov 2025
JM Financial Ranks Hospitals Top, Warns of Tough Two Years for Generics
A financial analyst from JM Financial says hospitals are the best bet in the pharma sector due to growth in organized healthcare.
He warns that generic drug companies will have a tough two years due to upcoming competition.
India's semaglutide market is seen as a big opportunity, with many players expected to benefit as generic versions enter the market.
JM Financial prefers hospitals, CDMOs, then generics in pharma sector
Analyst bullish on hospitals due to rising formalisation and structural tailwinds
Generics face competitive pressures from upcoming product losses
India's semaglutide market potential estimated at ₹15,000 crore
Generic prices expected to fall with time, benefiting both large and mid-sized players
- Who
- Amey Chalke, Pharma Research Analyst at JM Financial Institutional Securities
- What
- Ranks pharma sector preferences and discusses market opportunities and challenges
- When
- At the JM Financial India Xchange 2025 conference
- Where
- Not specified
- Why
- To share insights on the pharma sector's outlook
Bullish on Hospitals
Cautious on Generics
Growth Potential
Bullish on Hospitals
15-20% growth over next 3-4 years
Cautious on Generics
Muted earnings growth for next two years
Market Valuations
Bullish on Hospitals
Attractive at around 20 times
Cautious on Generics
Not attractive compared to hospitals and CDMOs
- Preferred order in pharma sector
- Hospitals, CDMOs, Generics
- Expected hospital growth
- 15-20% over next 3-4 years
- Semaglutide market potential
- ₹15,000 crore in a few years
- Generic drug challenges
- Revlimid and other large products losing exclusivity by FY27
- Expected generic earnings growth
- Muted for next two years