Zydus and Granules India seen as growth picks over the next three to five years

what happened

Anmol Ganjoo, Managing Partner at Shanika Capital Advisors, sees growth potential in Zydus Lifesciences, a largecap, and in Granules India, which he counts among his preferred mid- and small-cap picks. He expects several growth drivers to play out over the next three to five years, according to TradingView.

On Granules India, he acknowledged the regulator's warning letter on its Gagillapur plant, which runs at about 75% capacity utilisation. He said the regulatory concerns should be weighed against their actual earnings impact rather than prompting an immediate negative reaction. He also highlighted Glenmark Pharmaceuticals, citing its core earnings and research pipeline.

Ganjoo said investors should separate stocks whose gains are backed by earnings growth from those whose valuations have run ahead of fundamentals. He named Divi's Laboratories, Glenmark Pharmaceuticals and Aurobindo Pharma as examples of earnings-led performance.

why it matters

For Indian pharma, the shift in global supply chains away from China is opening room for contract development and manufacturing players. The analyst's view is that capital allocation and earnings visibility will decide which stocks outperform. These remarks are his opinion, not a price forecast.

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