New Delhi, Oct. 16 -- The global boom in weight-loss drugs has investors excited about India's drug contract manufacturers, many of which have been expanding their niche capabilities to meet the growing demand for drugs such as semaglutide and liraglutide.

Investors are betting on these CDMOs as they are the earliest beneficiaries of the boom, having already acquired the capacity to produce these drugs. Shares of Indian contract development and manufacturing organisation (CDMO) companies such as OneSource Specialty Pharma, Divi's Laboratories and Gland Pharma, which have the ability to manufacture these drugs, have jumped between 7% and 141% over the past year.

The global frenzy has also caught the attention of several large Indian drug...