Equity Research- Pharmaceutical Sector

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PROJECT REPORT ON

“EQUITY RESEARCH IN PHARMACEUTICAL SECTOR”Submitted in Partial Fulfillment of the Award of the Degree of Master in Management Studies of

University of Mumbai

By

SEEMA GUJJAR

ROLL NO: 78

Under the guidance of

Prof. Dr. AshishTriathi

PILLAI INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH,

NEW PANVEL

MMS 20!"20#

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DECLARATION

! M$% S&&'(G)**(+ of Pillai !nstitute of Management Studies and "esearch hereby declare that

the ro#ect wor$ titled %E)-./ R&$&(+1 - P1(+'(&).-(3 S&.4+& submitted as art of my

curriculum of MMS degree is the original wor$ done by me the ro#ect has not forms the basis

for an award of my degree' associate shi' fellowshi or any similar titles.

5S&&'(G)**(+6

P3(&:

D(.&:

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CERTIFICATE

This is to certify that the Pro#ect (or$ titled %)*uity "esearch in Pharmaceutical sector& is a

bonfide wor$ of Ms. Seema +u##ar carried out in artial fulfillment for the award of degree of

MMS under my guidance. This ro#ect wor$ is original and not submitted earlier for the award of

any degree, diloma of this or any other University, !nstitution.

M+% A$1-$1T+-(.1- D+% V-*(/(+((9(

Pro#ect +uide Director

Place:

Date:

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ACNOWLEDGEMENT

! ta$e this oortunity to sincerely than$ and e-ress my gratitude to my ro#ect guide Mr.

i$esh "uarel for guiding me throughout my entire ro#ect.

The e-erience and the $nowledge ac*uired over the interactions with the guide have been

invaluable to say the least and will hel me a great deal in my future education and career.

! would also li$e to than$ my co/guide Prof. AshishTriathi for valuable inut on coordination in

my ro#ect.

My ro#ect was comleted in a very suortive and interactive environment and has been great

learning e-erience. 0ast but not the least ! would li$e to than$ my family and friends for all the

suort they have rovided me.

Seema Gujjar

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E;ECUTIVE SUMMARY

The field of e*uity research is very vast and one has to loo$ into various asects of the

functioning of the comany to get to any conclusion about the ossible erformance of the

comany in the mar$et. !nvestors li$e (arren Buffet made a fortune out of investments in the

stoc$ mar$et' which is *uiet imossible without roer research about the comanies. The field

of e*uity research is full of challenge. !n a world that is shrin$ing in si1e due to information

technology and blurring boundaries between nation' stoc$ mar$et 2or the e*uities mar$et3' which

is considered to be in its infant stage' is all set to grow in si1e.

The ro#ect on “E)-./ R&$&(+1” was carried out by self/study. !t also rovided an insight

on what various services such as bro$ing houses rovide and what efforts are re*uired to manage

such organi1ations.

The reason behind choosing this ro#ect is that it rovides hands on e-erience with what goes

on in the stoc$ mar$et on a day/to/day basis. Some value investors only loo$ at resent

assets,earnings and don4t lace any value on future growth. 5ther value investors base strategies

comletely around the estimation of future growth and cash flows. Desite the different

methodologies.

The ro#ect initiated with understanding the mannerisms of the stoc$ mar$et trading

followed by the dynamics of the harmaceutical sector. Some of the ma#or layers in

harmaceutical sector were then chosen for further analysis. These comanies were further

studied in detail with resect to their financials and the management4s future lans regarding the

functioning of the comanies and their global forays.

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EQUITY:-

!n accounting and finance' e*uity is the residual claim or interest of the most #unior class

of investors in assets' after all liabilities are aid. !f valuations laced on assets do not e-ceed

liabilities' negative e*uity e-ists. !n an accounting conte-t' Shareholders e*uity reresents theremaining interest in assets of a comany' sread among individual shareholders of common or

referred stoc$.

At the start of a business' owners ut some funding into the business to finance assets.

This creates liability on the business in the shae of caital as the business is a searate entity

form its owners. Businesses can be considered to be' for accounting uroses' sums of liabilities

and assets6 this is the accounting e*uation. After liabilities have been accounted for' the ositive

remainder is deemed the owners interest in the business.

This definition is helful to understand the li*uidation rocess in case of ban$rutcy. At

first' all the secured creditors are aid against roceeds from assets. Afterwards' a series of

creditors' ran$ed in riority se*uence' have the ne-t claim,right on the residual roceeds.

5wnershi e*uity is the last or residual claim against assets' aid only after all other creditors are

aid. !n such cases where even creditors could not get enough money to ay their bills' nothing is

left over to reimburse owners4 e*uity. Thus owners4 e*uity is reduced to 1ero. 5wnershi e*uity

is also $nown as ris$ caital' liable caital and e*uity.

EQUTY SHARES

Total e*uity caital of a comany is divided into e*ual units of small denominations' each

called a share. For e-amle' in a comany the total e*uity caital of 7'88'88'888 is divided into

78'88'888 units of "s 78 each. )ach such unit of "s 78 is called a Share. Thus' the comany then

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is said to have 78'88'888 e*uity shares of "s 78 each. The holders of such shares are members of

the comany and have voting rights.

EQUITY INVESTMENT

)*uity investment generally refers to the buying and holding of shares of stoc$ on a stoc$

mar$et by individuals and firms in anticiation of income from dividends and caital gain as the

value of the stoc$ rises. !t also sometimes refers to the ac*uisition of e*uity articiation in a

rivate comany or a startu. (hen the investment is in infant comanies' it is referred to as

venture caital investing and is generally understood to be higher ris$ than investment in listed

going/concern situations.

W1/ $14)3> 4& -9&$. - E)-./ - (+.-)3(+?

(hen you buy a share of a comany you become a shareholder in that comany. )*uities

have the otential to increase in value over time. !t also rovides your ortfolio with the growth

necessary to reach your long term investment goals. "esearch studies have roved that the

e*uities have outerformed most other forms of investments in the long term. )*uities are

considered the most challenging and the rewarding' when comared to other investment otions.

"esearch studies have roved that investments in some share with a longer tenure of investment

have yielded far suerior returns than any other investment. 9owever' this does not mean all

e*uity investments would guarantee similar high returns. )*uities are high ris$ investments. 5ne

needs to study them carefully before investing.

H4@ .4 -9&$. - E)-./ S1(+&$?

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!nvestors can buy e*uity from Security mar$et that is from Primary mar$et or Secondary

mar$et. The rimary mar$et rovides the channel for sale of new securities. Primary mar$et

rovides oortunity to issuers of securities6 +overnment as well as cororate' to raise resources

to meet their re*uirements of investment and,or discharge some obligation. !nvestors can buy

shares of a comany through !P5 when it is first time issued to ublic. 5nce shares are issued to

the ublic it is traded in the secondary mar$et. Stoc$ e-change only acts as facilitator for trading

of e*uity shares. Anyone who wishes to buy shares of a comany can buy it form e-isting

shareholder of a comany.

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have been done in the area of fundamental analysis of stoc$s. The $nowledge thus gained from

reliminary study forms the basis for future detailed descritive research. !n the e-loratory

study' the various technical indicators that are imortant for analy1ing stoc$ were actually is

identified and imortant ones short listed.

SAMPLE DESIGN:

The samle of the stoc$s for the urose of collecting rimary and secondary data has been

selected on the basis of random samling. The stoc$s are chosen in an unbiased manner and each

stoc$ is chosen indeendent of the other stoc$ chosen. The stoc$s are chosen from the

Pharmaceutical sector.

SELECTION OF SAMPLE:

SAMP0) P5PU0AT!5:The entire harmaceutical sector is my oulation.

SAMP0):The have selected ten comanies as er mar$et caitali1ation.

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SCOPE OF STUDY:

The stoc$ mar$et in the country is on a remar$able growth ath in !ndia' there has been a

significant growth in income and wealth levels over the ast few years. Financial intermediaries

have begun to recogni1e the imortant of wealth management as a rofitable business.

!nvestment areas in !ndia normally include e*uities' mutual fund' bonds.

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LIMITATIONS OF THE STUDY:

This study has been conducted urely to understand )*uity analysis for investors.

The study is restricted to two comanies based on Fundamental analysis.

The study is limited to the comanies having e*uities.

Detailed study of the toic was not ossible due to limited si1e of the ro#ect.

There was a constraint with regard to time allocation for the research study i.e. for a

eriod of ;;days. Suggestions and conclusions are based on the limited data of five years.

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COMPANY PROFILE

future.

(ith an e-erience of over 78 years' BS0! has contributed significantly to the growth and

develoment of the life insurance industry in !ndia and currently ran$s amongst the to ? rivate

life insurance comanies in the country

Birla Sun 0ife !nsurance =omany 0imited 2BS0!3 is a #oint venture between the Aditya

Birla +rou' a well/$nown !ndian conglomerate and Sun 0ife Financial !nc.' one of the leading

international financial services organisations from =anada. (ith an e-erience of over a decade'

BS0! has contributed to the growth and develoment of the !ndian life insurance industry' and

currently is one of the life insurance comanies in the country. BS0! offers a comlete range of

offerings' comrising of rotection solutions' children>s future solutions' wealth with rotection

solutions' health and wellness solutions' as well as retirement solutions6 it has an e-tensive

distribution reach of over ;88 cities through its networ$ of over ;;8 branches' over 7'8;'888

emanelled advisors' and over 788 artnershis with cororate agents' bro$ers and ban$s. The

AUM of Birla Sun 0ife !nsurance is close to "s.


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VISION:

To be a leader and role model in a broad based and integrated financial services business.

MISSION:

To hel eole mitigate ris$s of life' accidents' health and money at all stages and under all

circumstances.

VALUES:

!ntegrity

=ommitment

Passion

Seamlessness

Seed

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CHAPTER"! ANALYSIS AND INTERPRETATAIONS

EQUITY RESEARCH

)*uity research is what an e*uity research analyst does. )*uity research is a study of

e*uities or stoc$s for the urose of investments. )*uities or common stoc$ comrises a big

chun$ in any comany4s caital and shareholders need to $now whether to stay invested in the

comany or sale the shares and come out.

As an individual' it is time consuming to do e*uity research i.e. to study the comany' its

financial statements' roducts' management and ta$e a decision about investment. )-actly for the

same reason there are eole wor$ing in research comanies whose #ob is to do e*uity research

and recommend comanies for investment.

PURPOSE:

Purose of e*uity research is to study comanies' analy1e financials' and loo$ at

*uantitative and *ualitative asects mainly for decision: (hether to invest or not.

RESEARCH TECHNIQUE

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The ro#ect is on e*uity research analysis of the sectors. 9ence study has to be done on

the basis of information and news available about the sectors i.e. secondary data by various

modes. This research had to be comleted by doing Fundamental analysis and Technical analysisof the comanies. Secondary data was collected from the internet' comany websites' maga1ines and various

articles. 9owever the main source of information is Annual "eort issued by the comanies and

also *uarterly reorts of the current year showing their erformances in current mar$et scenario. Firstly data was analy1ed on the basis of the industry. The industry i.e. Pharmaceutical

industry is focused on and its erformance and relation with the !ndian economy was monitored

and then secific stoc$s were chosen to be invested in deending uon the fundamentals of the

comany stoc$s. These stoc$s were individually analy1ed and then measured whether it wouldgive ma-imum returns if invested in. The research on the sectors and comanies in those sectors is e-lained in the later art

of the reort.

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FUNDAMENTAL ANALYSIS

F)>('&.(3 ((3/$-$of a business involves analy1ing its financial statements and health'

its management and cometitive advantages' and its cometitors and mar$ets. (hen analy1ing a

stoc$' futures contract' or currency using fundamental analysis there are two basic aroaches

one can use6 bottom u analysis and to down analysis. The term is used to distinguish such

analysis from other tyes of investment analysis' such as *uantitative analysis and technical

analysis%Fundamental analysis is erformed on historical and resent data' but with the goal of

ma$ing financial forecasts. There are several ossible ob#ectives:

• To conduct a comany stoc$ valuation and redict its robable rice evolution'

• To ma$e a ro#ection on its business erformance'

• To evaluate its management and ma$e ro#ected decisions'

Fundamental analysis includes:7. )conomic analysis


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Technical analysis is the rocess of analysing a security4s historical rices in an effort to

determine robable future rices. This is done by comaring current rice action with

comarable historical rice action to redict a reasonable outcome. Simly ut' technical analysis is the study of rices' with charts being the rimary tool.

Technical analysts are sometimes referred to as chartists because they rely almost e-clusively on

charts for their analysis. Technical analysis is alicable to stoc$s' indices' commodities' futures or any tradable

instrument where the rice is influenced by the forces of suly and demand. Price refers to any

combination of the oen' high' low or close for a given security over a secific timeframe. The

time frame can be based on intraday' daily' wee$ly or monthly rice data and last a few hours or

many years. Technicians' as technical analysts are called' are only concerned with two things:

7. (hat is the current rice


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TYPES OF CHARTS USED IN TECHNICAL ANALYSIS

LINE CHART

The line chart is one of the simlest charts. !t is formed by lotting one rice oint' usually

the close' of a security over a eriod of time. =onnecting the dots' or rice oints' over a eriod

of time' creates the line. Some investors and traders consider the closing level to be more imortant than the oen'

high or low. By aying attention to only the close' intraday swings can be ignored. 0ine charts

are also used when oen' high' and low data oints are not available.

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5riginating in aan over @88 years ago' candlestic$ charts have become *uite oular in

recent years. For a candlestic$ chart' the oen ' high' low and close are all re*uired. A daily

candlestic$ is based on the oen rice' the intraday high and low' and the close. A wee$ly

candlestic$ is based on Monday4s oen' the wee$ly high/low range and Friday4s close.

Many traders and investors believe that candlestic$ charts are easy to read' esecially

the relationshi between the oen and the close. (hite 2clear3 candlestic$s from when the close

is higher than the oen blac$ 2soild3 candlestic$s from when the close is lower than the oen.

The white and blac$ ortion formed from the oen and close is called the body 2white body or

blac$ body3. The lines above and below are called shadows and reresent the high and low.

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INTRODUCTION TO TRENDLINES

Trendlines are an imortant tool in technical analysis for both trend identification and

confirmation. A trendline is a straight line that connects two or more rice oints and then

e-tends into the future to act as a line of suort or resistance. Trends in charts are found to ta$e decisions regarding buying' selling' or holding the stoc$.

(hen a stoc$ is in utrend it is good stoc$ to buy and when a stoc$ is in down trend it is

advisable to sell that articular stoc$ or wait for trend in the stoc$ to change before ta$ing buying

decision.

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INTRODUCTION TO SUPPORT AND RESISTANCE

5nce you understand the concet of a trend' the ne-t ma#or concet is that of suort and

resistance. Cou4ll often hear technical analysts tal$ about the oening battle between the bulls

and the bears' or the struggle between buyers and sellers. This is revealed by the rices a security

seldom moves above 2resistance3 or below 2suort3.

W1(. -$ S)4+.? Suort is the rice level at which demand is thought to be strong enough to revent the

rice from declining further. The logic dictates that as the rice declines towards suort and gets

cheaer' buyers become more inclined to buy and sellers' become less inclined to sell. By the

time the rice reaches the suort level' it is believed that demand will overcome suly and

revent the rice from falling below suort.

W1(. -$ R&$-$.(&? "esistance is the rice level at which selling is thought to be strong enough to revent the

rice from rising further. The logic dictates that as the rice advances towards resistance' sellers

become more inclined to sell and buyers become less inclined to buy. By the time the rice

reaches the resistance level' it is believed that suly will overcome demand and resent the

rice form rising above resistance.

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As you can see in above figure' suort is the rice level through which a stoc$ or

mar$et seldom falls 2illustrated by the blue arrows3. "esistance' on the other hand' is the rice

level that a stoc$ or mar$et seldom surasses 2illustrated by the red arrows3.

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OVERVIEW OF PHARMA SECTOR

As er Pharma Eision


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!ndia is home to 78';88 manufacturing units and over @'888 harma comanies.

!ndia accounts for @;.J er cent 2@8883 of G'@J Drug Master Files 2DMF4s3 filed with

the USA' which is the highest outside of USA. 9igher sending on "KD' owing to Products Patents have made !ndia a ma#or destination

for generic drug manufacturing. !ndia has been accredited with aro-imately I8J =)Ps' G; T+A and ;7@ sites

registered with the USFDA. Following the introduction of roduct atents' several multinational comanies are

e-ected to launch atented drugs in !ndia.

HEALTH INSURANCE

Penetration of health insurance is e-ected to more than double with over ?;8 million

eole to be covered by


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Due to increasing oulation and income levels' demand for high/end drugs is

e-ected to reach USH G billion by


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!ncreasing liberali1ation of government olicies.

O4+.)-.-&$:

Aging of the world oulation.

+rowing incomes. +rowing attention for health.

ew diagnoses and new social diseases.

Sreading rohylactic aroaches.

Saturation oint of mar$et is far away.

ew theray aroaches.

ew delivery systems.

Sreading attitude for soft medication 25T= drugs3.

Sreading use of +eneric Drugs.

+lobali1ation.

)asier international trading. ew mar$ets are oening.

W&(&$$:

Fragmentation of installed caacities.

0ow technology level of =aital +oods of this section. on/availability of ma#or intermediaries for bul$ drugs.

0ac$ of e-erience to e-loit efficiency the new atent regime.

Eery low $ey "KD.

0ow share of !ndia in (orld Pharmaceutical Production 27.


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=ometition articularly from generic roducts.

More otential new drugs and more efficient theraies.

Switching over form rocess atent to roduct atent.

LEADING PLAYERS IN PHARMACEUTICAL INDUSTRY

To comanies in !ndia by et Sales

COMPANIES NAME NET SALES 5R$% C+6

D" ")DDC 0ABS G'@

=!P0A G'


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COMPANIES NAME PRICE P%E EPS LONG TERM

PRICE TARGET

5S&.4+ P%E B EPS6

DIFFRENCE


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Founded in 7IG? by Mr. P.E. "amarasad "eddy' Mr. N. ityananda "eddy and a small

grou of highly committed rofessionals' AurobindoPharma was born off a vision. The comany

commenced oerations in 7IGG/GI with a single unit manufacturing Semi/Synthetic Penicillin2SSP3 at Pondicherry.

AurobindoPharma became a ublic comany in 7II< and listed its shares in the !ndian stoc$

e-changes in 7II;. !n addition to being the mar$et leader in Semi/Synthetic Penicillins' it has a

resence in $ey theraeutic segments such as &)+4$-&&$, (+>-49($)3(+, (.-"+&.+49-+(3$,

(.-">-(&.-$, ($.+4&.&+434/ (> &1(34$4+-$' among others.

Through cost effective manufacturing caabilities and a few loyal customers' the comany

entered the high margin secialty generic formulations segment. !n less than a decadeAurobindoPharma today has evolved into a $nowledge driven comany manufacturing active

harmaceutical ingredients and formulation roducts. !t is "KD focused and has a multi/roduct

ortfolio with manufacturing facilities in several countries.

The formulation business is systematically organi1ed with a divisional structure' and has a

focused team for $ey international mar$ets. 0everaging on its large manufacturing infrastructure

for AP!s and formulations' wide and diversified bas$et of roducts and confidence of its

customers' it aims to achieve USD < billion revenues by s nine units for

AP!s , intermediates and seven units for formulations are designed to meet the re*uirements of

both advanced as well as emerging mar$et oortunities.

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A well integratedharma comany' AurobindoPharma features among the to 78 comanies

in !ndia in terms of consolidated revenues. Aurobindo e-orts to over 7


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0 3

Secure( )oans 1$87&.7

2 2$'%6.'' 1$0'8.01 702.2& 81'.02

*nsecure( )oans 899.2% 9&.62 1$279.71 1$2%2.&' 1$'01.6

6

+otal ,ebt2%&.

)

2%&&1.( 2%31.2 1%&&.* 2%11&.)*

+otal iabilities(%1&.0

)&%3(.12 &%**.33 3%*(.1&

3%&3(.(1

Mar '13 Mar '12 Mar '11 Mar '10 Mar '0

12 mths 12 mths 12 mths 12 mths 12 mths

Alication !f "unds

+ross ,loc- 2$90'.&

' 2$'&9.%0 1$9&&.17 1$&26.88

1$2&8.70

)ess Accum. /epreciation 891.62 7'2.66 60&.28 %81.&% '8&.8'

#et Bloc/ 2%011.1 1%)2).& 1%3&.* 1%0&(.3& *2.*Capital or- in roress 166.'% &6'.&6 &82.92 %99.%7 28&.96

nestments 0.* )2.00 &3.0 3.2& 2.&

n#entories 1$%'1.7

' 1$219.26 1$261.02 9%%.82 7'&.&2

Sun(ry /e3tors 1$7'0.&

9 1$%26.28 1$%80.71 1$1&1.'&

1$10&.67

Cash an( ,an- ,alance 11%.&7 1%.01 %.21 %.02 79.0'

Total Current Assets '$276.8

9 2$6&9.&& 2$7%&.9% 2$100.19

1$920.22

)oans an( A(#ances 661.%& 677.%1 &68.61 &9'.67 696.60

4i5e( /eposits 0.00 0.12 118.12 0.&% 7.91

Total CA$ )oans A(#ances '$9'8.'%

'$''7.08 '$%'2.67 2$69%.%0 2$62%.7'

/e!!ere( Cre(it 0.00 0.00 0.00 0.00 0.00

Current )ia3ilities 1$0'7.2

6 1$1&9.&9 91'.82 719.9% &9&.02

ro#isions 7'.2& 61.67 &7.%2 '9.'7 '0.77

Total C) ro#isions 1$110.&1 1$221.26 971.2% 7&9.'1 62&.79

#et Current Assets2%*2.*

32%11(.*2 2%&)1.&3 1%3(.0

1%*.&

Miscellaneous E5penses 0.00 0.00 0.00 0.00 0.00

+otal Assets(%1&.0

)&%3(.12 &%**.33 3%*(.1&

3%&3(.(1

Continent )ia3ilities %7%.&1 7%.&9 219.10 1'9.0% 90.0'

,oo- alue "s 100.9' 8&.6% 88.27 '%'.&1 2%&.67

TORRENT PHARMA

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Torrent Pharma' the flagshi comany of Torrent +rou' is ran$ed amongst the to harma

comanies of !ndia. !t is a dominant layer in the theraeutic areas of cardiovascular 2=E3 and

central nervous system 2=S3 and has achieved significant resence in gastro/intestinal'diabetology' anti/infective and ain management segments.

"ecently it has also forayed into the oncology theraeutic segment while also strengthening its

focus on gynecology and ediatric segments. "ight from ioneering niche mar$eting in !ndia to

earning the sobri*uet of the =omany with the most first launches4' Torrent Pharma has always

remained ahead of its cometition.

Torrent Pharma4s cometitive advantage stems from its world/class manufacturing facilities'advanced "KD caabilities' e-tensive domestic networ$ and a widesread global resence.

!t has three world/class manufacturing facilities at !ndrad 2+u#arat3' Baddi 29imachal Pradesh3

and Si$$im. The facilities are aroved by USFDA' (95' M9"A' T+A and other global

regulatory bodies. A new facility is ta$ing shae at Dahe# S) in (estern !ndia' which will cater

to the international mar$ets. Torrent Pharma is the sole manufacturer of !nsulin Formulations for

ovo ordis$ in !ndia since the early I8s and has also set u a dedicated formulation and

ac$aging facility for !nsulin.

!t is also amongst the few !ndian harma ma#ors to recogni1e the imortance of research and

develoment in the ost


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Drug Discovery and Develoment ro#ects. The "KD =entre has been aroved by USFDA and

various other regulatory authorities.

The !ndian oerations of the comany are controlled through well/segregated mar$eting

divisions' strategically structured on secific theraeutic areas. Together' these divisions

searhead the comany4s dominant osition in the various theraeutic segments that it oerates

in.

"ecently Torrent Pharma entered into a definitive binding agreement with )lder Pharma to

ac*uire its branded domestic formulations business in !ndia and eal. This will be the largest

ac*uisition by an !ndian harma comany in the domestic mar$et and will significantly

strengthen its osition in the neutraceuticals and women healthcare segments.

Torrent Pharma has a strong international resence sanning over J8 countries across five

continents with over 7


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Sources !f "unds

Total Share Capital %2.'1 %2.'1 %2.'1 %2.'1 %2.'1

Equity Share Capital %2.'1 %2.'1 %2.'1 %2.'1 %2.'1

Share Application Money 0.00 0.00 0.00 0.00 0.00

re!erence Share Capital 0.00 0.00 0.00 0.00 0.00

"eser#es 1$608.7

8 1$262.18 1$0&0.7% 8'8.&% 690.'7

"e#aluation "eser#es 0.00 0.00 0.00 0.00 0.00

#et$orth1%)(1.0

1%30&.& 1%03.0( **0.*( 32.)*

Secure( )oans %71.87 298.01 %28.%7 '6%.6% '18.27

*nsecure( )oans 107.29 162.17 1%'.&9 1&7.7& 16'.79

+otal ,ebt (.1) &)0.1* (2.0) (22.3 &*2.0)

+otal iabilities2%230.2

(1%)&.) 1%))(.11 1%&03.2& 1%21&.&

Mar '13 Mar '12 Mar '11 Mar '10 Mar '0

12 mths 12 mths 12 mths 12 mths 12 mths

Alication !f "unds

+ross ,loc- 1$18&.7

0 987.11 88%.9' 771.79 680.78

)ess Accum. /epreciation '9%.'2 '&0.80 297.'2 2%6.16 19'.&&

#et Bloc/ 1.3* )3).31 (*.)1 (2(.)3 &*.23

Capital or- in roress 276.'1 ''.6& 67.8' 10&.'8 %&.7'

nestments 10.2) &.*2 &30.(2 231.&* 2&&.)

n#entories 697.09 '9'.12 '%2.8' 227.88 191.8%Sun(ry /e3tors 8'1.27 %09.61 '%0.01 2&9.78 2%0.81

Cash an( ,an- ,alance 277.76 %'.&6 22.79 11.62 12.26

Total Current Assets 1$806.1

2 8%6.29 70&.6' %99.28 %%%.91

)oans an( A(#ances 291.2% 27&.06 200.&' 16%.0& 2'1.&8

4i5e( /eposits 0.00 '2'.12 2%2.&' ''&.17 171.0&

Total CA$ )oans A(#ances 2$097.'

6 1$%%%.%7 1$1%8.69 998.&0 8%7.&%

/e!!ere( Cre(it 0.00 0.00 0.00 0.00 0.00

Current )ia3ilities 8%6.21 708.28 %6%.%% '7&.18 '&'.17

ro#isions 278.8& 119.'2 10&.12 82.&& &7.&%

Total C) ro#isions 1$12&.0

6 827.60 &69.&6 %&7.7' %10.71

#et Current Assets 2.30 )1).* (.13 (&0. &3).*3

Miscellaneous E5penses 0.00 0.00 0.00 0.00 0.00

+otal Assets2%230.2

(1%)&.)( 1%))(.0 1%&03.2) 1%21&.(

Continent )ia3ilities '%6.68 &1.11 %9.76 72.91 '&.80

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,oo- alue "s 19&.1% 1&%.17 129.18 10%.11 86.&9

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CHAPTER"= FINDINGS AND CONCLUSION

(ith the above conclusion done we can conclude by saying that after analy1ing to ten

harmaceutical comanies Torrent Pharma emerged the to erforming comany in the list.

The mar$et rice of various harmaceutical comanies was ta$en along with the P,) ratio. After

that )PS was calculated with the hel of mar$et rice and P,) ratio. The sector P,) was

comared with P,) ratio of all the comanies. Finally' the target rice was calculated by

multilying the values of sector P,) ratio and )PS.

0astly' the difference between target rice and mar$et rice was calculated were the amount

arrived was ma-imum for Torrent Pharma. Thus' we can conclude by saying that Torrent Pharma

is best erforming comany as comared to other comanies in the list as there would beguaranteed ma-imum return in future in this comany and if the current mar$et rice in this

manner there would definitely be more investors for the comany.

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SUGGESTION AND RECOMMENDATION

STOC TARGET PRICE5R$6 RECOMMENDATION

TORRENT PHARMA 02%88


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Documents

Equity Research- Pharmaceutical Sector