Fundamental Analysis of Iol (Industrial Organic Limited) Chemicals and Pharmaceuticals LTD and Impact of Covid-19 On It

A PROJECT REPORT ON
FUNDAMENTAL ANALYSIS OF
IOL(INDUSTRIAL ORGANIC LIMITED) CHEMICALS
AND PHARMACEUTICALS LTD
AND IMPACT OF
COVID-19 ON IT
B.K. SCHOOL OF PROFESSIONAL AND
MANAGEMENT STUDIES
GUJARAT UNIVERSITY, AHMEDABAD
NAME: MADHU BHANUSHALI
ROLL NO. : 119114
(FULL-TIME MBA BATCH : 2019-21)
SEMESTER 2
UNDER THE GUIDANCE OF
DR. ANKITA KATHIRIYA
FUNDAMENTAL ANALYSIS OF IOL(INDUSTRIAL ORGANIC LIMITED) CHEMICALS AND
PHARMACEUTICALS LTD AND IMPACT OF COVID-19 ON IT
COMPANY CERTIFICATE
Date: 15-June-20
TO WHOMSOEVER IT MAY CONCERN
This is to certify that Ms. Madhu Mahesh has successfully completed her Project on Financial Management
under the guidance of Mr. Ketan Bhatia. The period of her Project was from 15-Apr-20 to 15-June-20.
There are no outstanding dues to be received from her by the company. We wish her all the best for
her future endeavors.
For India Infoline Ltd.
Namisha Gupta Human Resource

CERTIFICATE
This is to certify that Ms. Madhu Bhanushali, a student of MBA (Full-time), for the academic year 2019-21,
of B. K. School of Professional and Management Studies, Gujarat University, Ahmedabad has prepared
the Summer Internship Project Report titled “FUNDAMENTAL ANALYSIS OF IOL(INDUSTRIAL ORGANIC
LIMITED) CHEMICALS AND PHARMACEUTICALS LTD AND IMPACT OF COVID-19 ON IT” at India
Infoline Limited(IIFL) in the partial fulfilment of two year MBA program of Gujarat University. This project report
has been prepared under the guidance of Dr. Ankita Kathiriya, Professor at B. K. School of Professional
and Management Studies, Gujarat University, Ahmedabad and found satisfactory.
Date:28th October,2020 Dr Ankita Kathiriya

Place: Ahmedabad Professor,
BKSPMS, Gujarat University
B.K. School of Professional and Management Studies Page 1

DECLARATION:
I hereby declare that the Project titled “FUNDAMENTAL ANALYSIS OF IOL(INDUSTRIAL ORGANIC
LIMITED) CHEMICALS AND PHARMACEUTICALS LTD AND IMPACT OF COVID-19 ON IT” is an authentic
work of mine done under the valuable guidance of Dr. Ankita Kathiriya submitted as a part of
MBA.
It is the original work and not submitted to any other degree/diploma/fellowship or other
similar titles or prizes to any other institution/organization or university by any other person.
Madhu Bhanushali (119114)
B.K. School of Professional And Management Studies
MBA (Full-time Batch 2019-2021)

ACKNOWLEDGEMENT:
Apart from the efforts of mine, the success of the project is dependent largely on the encouragement
and guidelines of many others.
I take this opportunity to express my gratitude to the people who have been instrumental in the
successful completion of this project.
Firstly, I would like to thank my college B. K. SCHOOL OF PROFESSIONAL AND MANAGEMENT STUDIES
for giving me the opportunity of doing the research. I express my heartfelt gratitude to Dr. Ankita
Kathiriya for providing me with such a glorious opportunity under her constant guidance. Without her
encouragement and guidance this project would not have been materialized.
During the entire research I learnt lot of new things about research and acquired much knowledge about
the research topic. I am grateful to all who have provided their constant support and help.

ABSTRACT:
Outbreak of Covid-19 has severely affected the business of companies in India, but for many
sectors such as FMCG, IT and Pharmaceuticals company, it has brought some positive impact.
So in this research paper, one of the pharmaceutical company, IOL(Industrial Organic Limited)
Chemicals and Pharmaceuticals Ltd is being studied. It is being studied and analyzed in the
paper, how strong are the fundamentals of the company what are the impacts of Covid-19 on
the company and why one should invest in this stock.

Contents
1. INTRODUCTION ......................................................................................................................................... 8
1.1 ABOUT THE PROJECT............................................................................................................................. 8
1.2 ABOUT THE INDUSTRY .......................................................................................................................... 8
1.3 ABOUT THE COMPANY........................................................................................................................ 10
1.3.1 PRODUCTS OF THE COMPANY ......................................................................................................... 11
2. THEORETICAL FRAMEWORK: .................................................................................................................. 12
3. LITERATURE REVIEW: .............................................................................................................................. 14
4. RESEARCH METHODOLOGY .................................................................................................................... 16
4.1 OBJECTIVES: ........................................................................................................................................ 16
4.2 STATEMENT OF THE PROBLEM ........................................................................................................... 16
4.3 RESEARCH TYPE................................................................................................................................... 16
4.4 RESEARCH DESIGN .............................................................................................................................. 16
4.5 DATA ANALYSIS: .................................................................................................................................. 16
4.6 IMITATION OF THE RESEARCH ............................................................................................................ 16
4.7 FUTURE SCOPE OF THE RESEARCH...................................................................................................... 16
5. ANALYSIS AND INTERPRETATION ............................................................................................................ 17
5.1 INDUSTRY ANALYSIS: .......................................................................................................................... 17
5.1.1 STRUCTURE OF PHARMA SECTOR IN INDIA ..................................................................................... 17
5.1.2 IMPORTANT SEGMENTS IN INDIAN PHARMACEUTICAL SECTOR: ................................................... 18
5.1.3 ANNUAL TURNOVER OF INDIAN PHARMACEUTICAL MARKET (US$ BILLION): ................................ 19
5.1.4 QUARTERLY GROWTH RATE IN INDIAN PHARMA MARKET (%): ...................................................... 20
5.1.5 PHARMACEUTICAL EXPORTS FROM INDIA (US$ BILLION): .............................................................. 21
5.1.6 MAJOR EXPORT DESTINATIONS IN INDIA’S PHARMA EXPORT IN FY19 (%): .................................... 22
5.1.7 R & D INVESTMENT BY INDIAN PHARMA COMPANIES (% OF SALES): ............................................. 23
5.1.8 R & D SPENDING BY TOP INDIAN PHARMA COMPANIES IN FY20 (US$ MILLION): .......................... 23
5.2 COMPANY ANALYSIS: .......................................................................................................................... 24
KEY FINANCIAL RATIOS: ............................................................................................................................ 24
5.2.1 PER SHARE RATIOS: .......................................................................................................................... 24
INTERPRETATION ........................................................................................................................................ 26
5.2.2 PROFITABILITY RATIOS: .................................................................................................................... 27

INTERPRETATION ........................................................................................................................................ 29
5.2.3 LIQUIDITY RATIOS: ........................................................................................................................... 30
INTERPRETATION ........................................................................................................................................ 30
5.2.4 VALUATION RATIOS: ........................................................................................................................ 31
INTERPRETATION ........................................................................................................................................ 33
6. FINDINGS ................................................................................................................................................. 34
6.1 WHY TO GO FOR THIS STOCK: ............................................................................................................... 34
INTERPRETATION ........................................................................................................................................ 37
6.2 IMPACT OF COVID ................................................................................................................................. 38
7 CONCLUSION............................................................................................................................................. 41
8 BIBLIOGRAPHY .......................................................................................................................................... 42
9 ANNEXURES: ............................................................................................................................................. 44
9.1 QUARTERLY INCOME STATEMENT ....................................................................................................... 44
9.2 ANNUAL INCOME STATEMENT ............................................................................................................. 46
9.3 BALANCE SHEET .................................................................................................................................... 47
9.4 CASH FLOW STATEMENT....................................................................................................................... 48
9.5 SHARE PRICES OF IOL (DAILY) ................................................................................................................ 49
9.6 SHARE PRICES OF IOL (QUARTERLY) ...................................................................................................... 55

LIST OF FIGURES:
FIGURE 1 : ANNUAL TURNOVER OF INDIAN PHARMACEUTICAL MARKET (US$ BILLION)........................... 19

FIGURE 2 : QUARTERLY GROWTH RATE IN INDIAN PHARMA MARKET (%) ................................................ 20
FIGURE 3 : PHARMACEUTICAL EXPORTS FROM INDIA (US$ BILLION)......................................................... 21
FIGURE 4 : MAJOR EXPORT DESTINATIONS IN INDIA’S PHARMA EXPORT IN FY19 (%)............................... 22
FIGURE 5 : R & D INVESTMENT BY INDIAN PHARMA COMPANIES (% OF SALES)........................................ 22
FIGURE 6 : R & D SPENDING BY TOP INDIAN PHARMA COMPANIES IN FY20 (US$ MILLION) ..................... 23
FIGURE 7: BASIC EPS (RS.) ........................................................................................................................... 24
FIGURE 8 : BOOK VALUE.............................................................................................................................. 24
FIGURE 9 DIVIDEND / SHARE(RS.) ............................................................................................................... 24
FIGURE 10 : PBT/SHARE (RS.) ...................................................................................................................... 25
FIGURE 11 : PBT MARGIN (%) ...................................................................................................................... 27
FIGURE 12 : NET PROFIT MARGIN (%) ......................................................................................................... 27
FIGURE 13 : RETURN ON NETWORTH / EQUITY (%) .................................................................................... 27
FIGURE 14 : RETURN ON CAPITAL EMPLOYED (%) ...................................................................................... 28
FIGURE 15 : RETURN ON ASSETS (%) ........................................................................................................... 28
FIGURE 16 : TOTAL DEBT/EQUITY (X) .......................................................................................................... 28
FIGURE 17 : CURRENT RATIO (X) ................................................................................................................. 30
FIGURE 18 : QUICK RATIO (X) ...................................................................................................................... 30
FIGURE 19 : ENTERPRISE VALUE (CR.) ......................................................................................................... 31
FIGURE 20 : EV/NET OPERATING REVENUE (X) ........................................................................................... 31
FIGURE 21 : EV/EBITDA (X) .......................................................................................................................... 31
FIGURE 22 : MARKETCAP/NET OPERATING REVENUE (X) ........................................................................... 31
FIGURE 23 : PRICE/BV (X) ............................................................................................................................ 32
FIGURE 24 : PRICE/NET OPERATING REVENUE ........................................................................................... 32
FIGURE 25 : QUARTERLY SALES ................................................................................................................... 34
FIGURE 26 : ANNUAL SALES ........................................................................................................................ 34
FIGURE 27 : QUARTERLY NET PROFIT.......................................................................................................... 34
FIGURE 28 : ANNUAL NET PROFIT ............................................................................................................... 34
FIGURE 29 : NET CASHFLOW FROM OPERATING ACTIVITIES ...................................................................... 35
FIGURE 30 : SHARE CAPITAL ........................................................................................................................ 35
FIGURE 31 : RESERVES & SURPLUS.............................................................................................................. 35
FIGURE 32 : DEBT ........................................................................................................................................ 35
FIGURE 33 : RETURN ON NETWORTH / EQUITY (%) .................................................................................... 36
FIGURE 34 : TOTAL DEBT/EQUITY (X) .......................................................................................................... 36
FIGURE 35 : NET PROFIT/SHARE (RS.) ......................................................................................................... 36
FIGURE 36 : DAILY CLOSING PRICE OF SHARE ............................................................................................. 40
FIGURE 37 : QUARTERLY CLOSING PRICE OF SHARE ................................................................................... 40

1. INTRODUCTION:
1.1 ABOUT THE PROJECT:

Because of the outbreak of Covid-19, many companies in the world have been hit hard.But there are few
sectors which have been benefitted like FMCG sector, IT sector , pharma sector ,etc.
So the project is about one of the pharmaceutical company, IOL(Industrial Organic Limited) Chemicals
and Pharmaceuticals Ltd.In the project, the fundamentals of the company are studied.It is being studied
how the performance of the company has been in last five years, whether to invest in this stock and
what is the impact of Covid-19 on the company.
1.2 ABOUT THE INDUSTRY:

India is the largest provider of generic drugs globally. Indian pharmaceutical sector industry supplies
over 50 per cent of global demand for various vaccines, 40 per cent of generic demand in the US and 25
per cent of all medicine in UK.
India enjoys an important position in the global pharmaceuticals sector. The country also has a large
pool of scientists and engineers who have the potential to steer the industry ahead to an even higher
level. Presently over 80 per cent of the antiretroviral drugs used globally to combat AIDS (Acquired
Immune Deficiency Syndrome) are supplied by Indian pharmaceutical firms.
Market Size
Indian pharmaceutical sector is expected to grow to US$ 100 billion and medical device market expected
to grow US$ 25 billion by 2025. Pharmaceuticals exports from India stood at US$ 19.14 billion in FY19
and US$ 13.69 billion in FY20 (up to January 2020). Pharmaceutical exports include bulk drugs,
intermediates, drug formulations, biologicals, Ayush & herbal products and surgicals.
Indian companies received 304 Abbreviated New Drug Application (ANDA) approvals from the US Food
and Drug Administration (USFDA) in 2017 and received a total of 415 product approvals in 2018 and 73
tentative approvals. The country accounts for around 30 per cent (by volume) and about 10 per cent
(value) in the US$ 70-80 billion US generics market.
India's biotechnology industry comprising biopharmaceuticals, bio-services, bio-agriculture, bio-industry

and bioinformatics is expected grow at an average growth rate of around 30 per cent a year and reach
US$ 100 billion by 2025.
India’s domestic pharmaceutical market turnover reached Rs 1.4 lakh crore (US$ 20.03 billion) in 2019,
growing 9.8 per cent year-on-year (in Rs) from Rs 129,015 crore (US$ 18.12 billion) in 2018.
Investments and Recent Developments

The Union Cabinet has given its nod for the amendment of the existing Foreign Direct Investment (FDI)
policy in the pharmaceutical sector in order to allow FDI up to 100 per cent under the automatic route
for manufacturing of medical devices subject to certain conditions.
The drugs and pharmaceuticals sector attracted cumulative FDI inflows worth US$ 16.25 billion between
April 2000 and June 2019, according to data released by the Department for Promotion of Industry and
Internal Trade (DPIIT).
Some of the recent developments/investments in the Indian pharmaceutical sector are as follows:
Affordable medicines under the Pradhan Mantri Bhartiya Janaushadhi Pariyojana (PMBJP) have led to
savings of Rs 1,000 crore (US$ 143.08 million) for Indian citizens in FY19.
During December 2019, on moving annual total (MAT) basis, industry growth was at 9.8 per cent, with
price growth at 5.3 per cent, new product growth at 2.7 per cent while volume growth at two per cent y-
o-y.
In October 2019, Telangana government proposed Hyderabad Pharma City with financial assistance
from Central government of Rs 3,418 crore (US$ 489 million).
As on August 2019, the moving annual turnover (MAT) for biosimilar molecules sold in the domestic
market stood at Rs 1,498 crore (US$ 214.31 million).
Healthcare sector witnessed private equity of total US$ 1.1 billion with 27 deals in first half of 2019.
The exports of Indian pharmaceutical industry to the US will get a boost, as branded drugs worth US$ 55
billion will become off-patent during 2017-2019.
Government Initiatives
Some of the initiatives taken by the government to promote the pharmaceutical sector in India are as
follows:
In November 2019, Cabinet approved the extension/renewal of the extant Pharmaceuticals Purchase
Policy (PPP) with the same terms and conditions while adding one additional product namely, Alcoholic
Hand Disinfectant (AHD) to the existing list of 103 medicines till the final closure/strategic disinvestment
of the Pharma CPSUs.
Under Budget 2020-21, allocation to the Ministry of Health and Family Welfare is Rs 65,012 crore (US$
9.30 billion).
The government has allocated Rs 34,115 crore (US$ 4.88 billion) towards the National Health Mission
under which rural and urban people will get benefited.
Rs 6,400 crore (US$ 915.72 million) has been allocated to health insurance scheme Ayushman Bharat –
Pradhan Mantri Jan Arogya Yojana (AB-PMJAY).

As per Economic Survey 2018-19, government expenditure (as a percentage of GDP) increased to 1.5 per
cent in 2018-19 from 1.2 per cent in 2014-15 for health.
In October 2018, the Uttar Pradesh Government announced that it will set up six pharma parks in the
state and has received investment commitments of more than Rs 5,000-6,000 crore (US$ 712-855
million) for the same.
The National Health Protection Scheme is largest government funded healthcare programme in the
world, which is expected to benefit 100 million poor families in the country by providing a cover of up to
Rs 5 lakh (US$ 7,723.2) per family per year for secondary and tertiary care hospitalisation. The
programme was announced in Union Budget 2018-19.
In March 2018, the Drug Controller General of India (DCGI) announced its plans to start a single-window
facility to provide consents, approvals and other information. The move is aimed at giving a push to the
Make in India initiative.
The Government of India is planning to set up an electronic platform to regulate online pharmacies
under a new policy, in order to stop any misuse due to easy availability.
The Government of India unveiled 'Pharma Vision 2020' aimed at making India a global leader in end-to-
end drug manufacture. Approval time for new facilities has been reduced to boost investments.
The government introduced mechanisms such as the Drug Price Control Order and the National
Pharmaceutical Pricing Authority to deal with the issue of affordability and availability of medicines.
1.3 ABOUT THE COMPANY:

IOL(Industrial Organic Limited) Chemicals and Pharmaceuticals Ltd., incorporated in the year 1986, is a
Small Cap company (having a market cap of Rs 2167.13 Crore) operating in Pharmaceuticals sector.
IOLCP is a major manufacturer in the speciality organic chemical space. It is one of the largest producers
of Ethyl Acetate (87,000 TPA) and ISO Butyl Benzene (IBB) (12000 MT) in India with over 30% of the
global market share and a major player in Ibuprofen. It has forward-integrated this vertical to the
pharmaceutical segment with end products such as Ethyl Acetate, IBB, MCA and Acetyl Chloride used as
key raw materials for Ibuprofen. It plans to explore its presence in other industries such as paints,
flexible packaging and glass. In line with this approach, it has added many MNC giants to its customer
base.
With a presence in 56 countries, IOLCP has established itself as a major player in Ibuprofen with above
30% of the global capacity. It is the only backward-integrated company in the world and largest
Ibuprofen producer (12,000 TPA) that manufactures all intermediates and key starting materials at one
location. It has augmented its pharma business by moving up the value-chain with entry into lifestyle
drugs for pain management, anti-depressant, anti-diabetic, anti-platelet and anti-convulsion. IOLCP’s

Ibuprofen plant is USFDA and EUGMP certified by the National Institute of Pharmacy and Nutrition,
Hungary. It contributes 85% to the total revenue of its Pharma division.
The company’s top management includes Dr.(Mrs.)Sandhya Mehta, Mr.Harpal Singh, Mr.Rajender
Mohan Malla, Mr.Varinder Gupta, Mr.Vijay Garg, Mr.Vikas Gupta. Company has SCV & Co. LLP as its
auditors As on 31-03-2020, the company has a total of 56,887,502 shares outstanding.
IOLCP, operates its manufacturing facilities from Barnala (Punjab). The state of the art facilities as per
current GMP guidelines spread over 56 Acres of land at single location.
1.3.1 PRODUCTS OF THE COMPANY:

ACTIVE PHARMA INGREDIENTS:
Presently, 6 API's are already commercialized and 10 API's are in the advance stage of development.
Product Usage
Ibuprofen NSAID
Metformin Hydrochloride Anti Diabetic
Lamotrigine Anti convulsant
Fenofibrate Anti cholesterol
Clopidogrel Bi sulphate Anti Platelet
TABLE 1 : ACTIVE PHARMA INGREDIENTS:
SPECIALITY CHEMICALS:
The Speciality Chemicals division produces Ethyl Acetate from organic alcohol for use in a variety of end
products in markets, including flexible packaging, pharmaceuticals, textiles, food processing, pesticides
and paint industries.
Product
Ethyl Acetate
Iso Butyl Benzene
Acetyl Chloride
Mono Chloro acetic Acid
TABLE 2 : SPECIALITY CHEMICALS:
It has a 17 MW power generation plant for captive consumption with adequate backups for trouble-free
operations. Its R&D lab is DSIR approved and is fully equipped to validate the existing processes.

2. THEORETICAL FRAMEWORK:
With the aim of determining which stock an investor should buy/sell and at which price, two basic
approaches can be conducted:
i) Fundamental analysis, which postulates that stock markets may misprice an asset in the shortrun but
not in the long-run, where the "correct" price will be attained. Therefore, there is a longterm
equilibrium to which every stock price will tend. Profits can be made by trading the mispriced asset and
then waiting for the market to recognize its "mistake" and re-price it.
ii) Technical analysis, which considers that all information is already reflected in the stock price. In this
situation, the investor believes that (i) “the trend is his friend” and that (ii) sentiment changes predict
trend changes. More specifically,investors’ emotional responses to price movements lead to
recognizable price chart patterns. The price predictions based on the technical analysis are just
extrapolations from historical price patterns.
Investors may use one of the above-mentioned approaches or combine both of them. For example, as
many fundamental investors use technical analysis to decide entry and exit points, some technical
investors use fundamentals to restrict their portfolios, only to “good and financially healthy companies”
The choice of which approach (fundamental or technical) should be applied is determined by the
investor's belief in different paradigms for "how the stock market actually works". As noted above, the
fundamental analysis bases itself on financial reports, which provide fundamental data for calculating
financial ratios. In this context, each ratio allows for evaluating different aspects of the enterprises
financial performance .The fundamental analysis is mainly used by shareholders, who have largely
surpassed the average annual return of the stock market. For example, the billionaire Warren Buffett,
perhaps the most famous investor in the World, has repeatedly carried out this strategy, in opposition
to the most commonly used investment strategies in Wall Street. He exploited bear markets and down
stocks, a strategy that has made him the second richest person in the World. The reasons for the success
of this strategy are five-fold:
i) It allows the investor to identify companies with durable or long-term competitive advantages;
ii) It is easy to implement;
iii) It is a structured and consistent process performed on the basis of the available financial reports
iv) It is useful to select potential stocks to acquire,thus, facilitating the make-up of an investment
portfolio;
v) It allows the estimation of the intrinsic value or "real" value of the stocks. In fact, as stock markets are
not perfectly efficient, there is always an opportunity to find undervalued stocks.
Investors may use the fundamental analysis within different portfolio management styles:

i) Buy and hold investors believe that latching onto good businesses allows the investor's asset to grow
with the company. The fundamental analysis allows them to find “good” companies, so that they can
lower their risk and the probability of wipe-out.
ii) Managers may use the fundamental analysis to correctly evaluate “good” and “bad” companies.
Eventually “bad” companies' stock prices may move up and down more often than the “good”ones, thus
increasing the volatility of stock prices and, therefore, creating opportunities to profit.
iii) The economic cycle may also be useful to managers in order to determine the “right” time to buy or
to sell.
iv) Contrarian investors acknowledge that "in the short-run the market is a voting machine, not a
weighing machine”. The fundamental analysis allows the investors to make their own decisions on the
company’s value, and to ignore the market.
v) Value investors restrict their attention to undervalued companies, believing that “it is hard to fall out
of a ditch”.
vi) Managers may use the fundamental analysis to identify companies with future high growth rates.
vii) The fundamental and technical analysis may also be combined together in order to get a broader
picture of the company’s performance.
Despite the above-mentioned advantages of the fundamental analysis, it is worthy to note that even in
ideal conditions the fundamental analysis does notsuggest a specific price but a range of prices.

3. LITERATURE REVIEW:
MR. SURESH A.S (2013) had explained what is fundamental analysis and technical analysis of stocks,
how to do it, what is its importance and how to use these analysis to study the particular stock.
SILPA K S, ARYA MOL J, Dr. A S AMBILY (2017) had done the Fundamental analysis of selected IT
companies listed at NSE. They have done the analysis in three phases- Economic analysis, Industry
analysis and Company analysis.
MR. YEDHU HARIKUMAR , MS. RENI SUSAN PHILIP (2020) had done the technical analysis of selected
petroleum industries stocks listed in NSE. The paper was intended to find out the price
fluctuations, demand and supply, market trend and price difference comparison of NSE stocks.
Niladri DAS, PattanayakJK (2009) had examined the various research studies undertaken in the Indian
and international context highlighting the effect of various fundamental factors on the behaviour of
the stock market. They had tried to identify the critical variables which have a significant effect on
stock price movements and influence the entire market's movement. The 30 shares constituting
the Bombay Stock Exchange Sensitivity Index (BSE-SENSEX or SENSEX) were used as proxies to
capture the entire stock market's movement.
Hemraj Verma and Prakash Tiwari (2017) in their study headed, “A Fundamental analysis of public sector
banks in India” detailed the growth of the Indian banking industry and current .
Sugandharajkulkarni (2011) in his research paper titled, “ A study on fundamental analysis of ONGC”
explains about the relevance of fundamental analysis along with the attempt to find the intrinsic value
of shares.
J Hema and V Ariram (2016) in their research paper titled,“ Fundamental analysis with special
reference to pharmaceutical companies listed in NSE” stated that an investor should analyze the
market fundamentally and technically before investing in shares. They also noticed growth in the
pharmaceutical industry in India
Shaik Mohammad Imran, Arativari Manjula (2020) had done the technical analysis of stocks of NSE.
Dr. Ashok Kumar Rath (2016) have studied the financial statement of Tata Steel Odisha.He has made an
effort to suggests the best financing option for the project expenditure of Rs.21200 Cr and to identify its
financial strength and weaknesses with the help of various financial statement analysis tools and
techniques.
Dr.P.Ganapathi, M.Kulandaivelu, P.Keerthana (2018) have studied the financial statement of Tamilnadu
Newsprint And Paper Limited (TNPL) using ratio analysis and comparative statement for balance sheet
and profit and loss statement.

J.Pavithra, Dilip Gurukrishnan (2018) have studied the financials of BSNL.They have tried to identify the
various assets of BSNL with respect to Annual Reports of the BSNL,to study the functioning of the
finance department through comparative study of Two year Annual reports.
R. Idhayajothi, Dr.O.T.V.Latasri, N. Manjula, A.Meharaj Banu,R. Malini (2014) have done the research to
know the financial position of the Ashok Leyland,to know the Liquidity and profitability position of the
company.
S. Saigeetha and Dr.S.T.Surulivel (2017) have tried to enlighten the financial performance of the public
sector undertaking that is, BHEL (Bharat Heavy Electricals Limited).They have identified the cash
fluctuations of profitability, liquidity position in the BHEL,the financial performance and distribution of
BHEL and have done the feasibility examination of present system for the purpose of managing working
capital turnover ratios in BHEL company.
Prof. Dr. Preeti Bhamre, Devwrat Nevewani, Prajwal Jadhav, Neha Pipada, Divyal Shewale (2020)
discussed strategies for obtaining useful data from NSE (National Stock Exchange),Investopedia and
Money Control websites using web scraping libraries in python and storing same data in several files like
.csv and excel.

4. RESEARCH METHODOLOGY:
4.1 OBJECTIVES:
 To study the fundamentals of the company.
 To analyse the performance of the company over the period of five years from 2016-2020.
 To study the impact of Covid-19 on the performance of the company
4.2 STATEMENT OF THE PROBLEM:

How are the fundamentals of the company, whether the performance of the company has increased
over the period of five years and whether company has faced challenges because of Covid-19.
4.3 RESEARCH TYPE:

The study is mainly based on secondary data. The data is collected from Internet, website of the
company also some articles are read to know the market view. The financial statements of the company
are used: Balance sheet, income statement and cashflow statement. Analysis is done with the
fundamental tools.
4.4 RESEARCH DESIGN:

The fundamental analysis of the company is done for the years of five years and based on it is analysed
whether to invest in the stock of the company analyzing the various factors showing company’s
performance. Also impact of Covid-19 on the company is studied.
4.5 DATA ANALYSIS:

The data has been analyzed using ratios, charts, tables, etc.
4.6 LIMITATION OF THE RESEARCH:

In the research, only one company, IOLCP in the pharmaceutical sector is being studied. Many more
companies companies can be studied. Also other sectors can also be analysed. The analysis of the
performance of the company is done for five years only. For more accurate analysis, more than five
years can also be studied.
4.7 FUTURE SCOPE OF THE RESEARCH:

More companies under pharma sector can be analysed to get the entire view of impact of Covid-19 on
the sector. Other sectors can also be analysed for studying the impact of Covid-19 on the Indian
economy.

5. ANALYSIS AND INTERPRETATION:
5.1 INDUSTRY ANALYSIS:
5.1.1 STRUCTURE OF PHARMA SECTOR IN INDIA:
PHARMACEUTICALS
ACTIVE PHARMACEUTICAL FORMULATIONS

INGREDIENTS/BULK DRUGS
BRANDED GENERICS BRANDED GENERICS
CARDIOVASCULAR ANTI-INFECTIVES
ANTI-DIABETES RESPIRATORY
GASTRO-INTESTINAL PAIN
NEUROLOGICAL GYNECOLOGY

5.1.2 IMPORTANT SEGMENTS IN INDIAN PHARMACEUTICAL SECTOR:

ACTIVE PHARMACEUTICAL INGREDIENTS (APIs):
In April 2019, a high level task force was constituted to create a roadmap for increasing domestic
production of APIs. Currently India imports over 60 % of its APIs from other countries.
Domestic APIs consumption is expected to reach US$ 18.8 billion by FY22.
FORMULATIONS:
India is the largest exporter of formulations in terms of volume with 14 % market share and 12th in terms
of export value.
Double-digit growth is expected over the next five years.
CONTRACT RESEARCH AND MANUFACTURING SERVICES (CRAMS):
It is the fragmented market with more than 1000 players.
CRAMS industry has posted 48 % CAGR between FY15-18 and expected to witness a strong growth over
25 5 over 2018-2021.
BIOSIMILAR:
As an August 2019, the moving annual turnover for biosimilar molecules sold in the domestic market
stood at Rs 1498 crores (US$ 214.31 million).
The domestic market is expected to reach US$ 40 billion by 2030.

5.1.3 ANNUAL TURNOVER OF INDIAN PHARMACEUTICAL MARKET (US$

BILLION):
ANNUAL TURNOVER OF INDIAN PHARMACEUTICAL

MARKET (US$ BILLION)
20.03
17.87 18.12
16.41
2016 2017 2018 2019
FIGURE 1 : ANNUAL TURNOVER OF INDIAN PHARMACEUTICAL MARKET (US$ BILLION)
India’s domestic pharmaceutical market turnover reached Rs 1.4 lakh crore in 2019, growing 9.8 % year
on year from Rs 129015 crore in 2018.
Medicine spending in India is projected to grow 9-12 % over the next five years, leading India to become
one of the top 10 countries in terms of medicine spending.
India’s cost of production is significantly lower than that of the US and almost half of that of Europe. It
gives a competitive edge to India over others.

5.1.4 QUARTERLY GROWTH RATE IN INDIAN PHARMA MARKET (%):
QUARTERLY GROWTH RATE IN INDIAN PHARMA

MARKET (%)
11.5
9.2 9.3 9.7 9.5 9.5
8.9
7.4 7.8 7.9
6.6
1.4
MAR' 17 JUN' 17 SEP' 17 DEC' 17 MAR' 18 JUN' 18 SEP' 18 DEC'18 MAR' 19 JUN' 19 SEP' 19 DEC' 19
FIGURE 2 : QUARTERLY GROWTH RATE IN INDIAN PHARMA MARKET (%)
The Indian Pharma Market declined around 11% in April 2020 and 8.6% in May 2020, led by a sharp
16.7% yoy and 14.4%, respectively, decline in volume growth; while prices and new drugs launches
witnessed an increase of around 4% and 1%.
In line with the overall industry level decline, during April-May 2020, most of the companies reported a
double-digit decline in sales growth due to the weak acute sales and high base last year. Except cardiac
and anti-diabetic, all other therapies reported a decline in sales growth.
Large pharma companies generally have large cash balances, which typically account for 12%-13% of
their revenues; overall cash balances have been around 35% of their total debt.
Parameters(%) FY17 FY18 FY19 FY20 APRIL MAY
Volume Growth 5 4 4 2 -17 -14
Price Growth 2 -1 4 5 4 5
New Product Growth 3 3 2 3 1 1

5.1.5 PHARMACEUTICAL EXPORTS FROM INDIA (US$ BILLION):
PHARMACEUTICAL EXPORTS FROM INDIA (US$

BILLION)
19.1 20.7
16.9 16.8 17.3
FY16 FY17 FY18 FY19 FY20
FIGURE 3 : PHARMACEUTICAL EXPORTS FROM INDIA (US$ BILLION)
India is the world’s largest provider of generic medicines. Its generic drugs account for 205 of global
generic drug exports in terms of volume. It is exported to more than 200 countries in the world, with the
US as the key market.
Indian pharma companies are capitalizing on export opportunities in regulated and semi-regulated
markets.
Pharmaceutical export from India, which include bulk drugs, intermediate, drug formulations, biological,
Ayush and herbal products and surgical, reached US$ 20.70 billion in FY20.
The biggest export destination for Indian pharma product is the US. In FY19, 32.1 % of India’s pharma
exports were to the North America, followed by 17.96 5 to Africa and 15.70 % to the European Union.

5.1.6 MAJOR EXPORT DESTINATIONS IN INDIA’S PHARMA EXPORT IN

FY19 (%):
MAJOR EXPORT DESTINATIONS IN INDIA’S

PHARMA EXPORT IN FY19 (%)
NORTH AMERICA AFRICA EU ASEAN LAC MIDDLE EAST OTHERS
15%
32%
5%
7%
7%
16% 18%
FIGURE 4 : MAJOR EXPORT DESTINATIONS IN INDIA’S PHARMA EXPORT IN FY19 (%)
5.1.7 R & D INVESTMENT BY INDIAN PHARMA COMPANIES (% OF SALES):
R & D INVESTMENT BY INDIAN PHARMA

COMPANIES (% OF SALES)
8.7 8.6
8.5 8.4
7.9
FY16 FY17 FY18 FY19 FY20
FIGURE 5 : R & D INVESTMENT BY INDIAN PHARMA COMPANIES (% OF SALES)

As per Union Budget 2019-20, Rs 1900 crore have been set aside for research of the total amount, Rs
62659 crore have been allocated for Ministry of Health and Family Welfare.
India plans to set up a nearly Rs 1 lakh crore fund to provide boost to companies to manufacture
pharmaceutical ingredients domestically.
5.1. 8 R & D SPENDING BY TOP INDIAN PHARMA COMPANIES IN FY20

(US$ MILLION):
R & D SPENDING BY TOP INDIAN PHARMA

COMPANIES IN FY20 (US$ MILLION)
225
146 173
57 72
TORRENT CADILA CIPLA LUPIN SUN

PHARMA HEALTHCARE PHARMA
FIGURE 6 : R & D SPENDING BY TOP INDIAN PHARMA COMPANIES IN FY20 (US$ MILLION)
In FY20, highest expenditure on research and development was done by lupin, followed by Cipla.
Sun Pharma’s R & D plan includes developing more products through expanded R & D team for global
markets, focusing on more complex products across multiple dosage forms and investments in specially
pipeline.

5.2 COMPANY ANALYSIS:
KEY FINANCIAL RATIOS:
5.2.1 PER SHARE RATIOS:
Basic EPS (Rs.) Book Value

63.51 143
42.11
83.38
32.94
33.57 38.38
-7.6 4.93
0.83
16-Mar 17-Mar 18-Mar 19-Mar 20-Mar
FIGURE 7: BASIC EPS (RS.)
FIGURE 8 : BOOK VALUE
3
Dividend / Share(Rs.)
0 0 0 0
FIGURE 9 DIVIDEND / SHARE(RS.)

PBT/Share (Rs.) Net Profit/Share (Rs.)

93.73
63.51
59.09 41.61
-7.12 0.83 4.93

1.05 5.57
-6.86
FIGURE 10 : PBT/SHARE (RS.)
FIGURE 11 : NET PROFIT/SHARE (RS.)
Revenue from Operations/Share (Rs.)

333.01
296.24
174.93
103.27 126.43
FIGURE 12 : REVENUE FROM OPERATIONS/SHARE (RS.)

INTERPRETATION:
The above charts give idea about the per share ratios of the company over the period of five years. As
the charts are based on the data from the annual report of the company, much effect of Covid-19
cannot be seen on the performance of the company.
EPS, Book value, Dividend per share, Revenue per share, PBT (Profit Before Tax) per share and NP (Net
Profit) per share, all are showing the company in a better position doing a great progress over the period
of five years. All its ratios are showing positive return for its investors.
But while analyzing the quarterly results of the company, the effect of Covid-19 on the revenue and
profit of the company can be seen.
Till quarter December 2019, the company’s sales has been going up, but due to outbreak of Covid-19, its
sales in March, 2020 has declined from 511.25 crores to 441.46 crores that is by 13.65 %, but the its
sales in quarter June, 2020 shows the improvement.
As compared to March 2020 quarterly sales, its revenue in June, 2020 increased by 4 % though it is less
as compared to its previous performance before Covid-19, but it is improving which is a positive sign.
Profit of the company has been continuously improving before Covid-19 but after its outbreak, its profit
declined due to decrease of sales in March. Its profit declined by 13.71 % in quarter March, 2020 as
compared to profit of previous quarter.
However its profit showed improvement of 12.8 % in Quarter June, 2020 as compared to March, 2020.
The reasons for decline in company’s revenue and profit are:
 Due to lockdown imposed by government as a measure to combat spread of Covid-19 led to

shut down of company for many days also after lockdown was removed, some workers of the
company tested positive for Covid-19 which also led to stoppage in production in few
production units.
 Plants which were operational produced less due to social distancing and less number of
workers coming to work.
 Logistics also remained a big problem. Transportation of workers and APIs and formulations
needed as raw material for production of many medicines also faced many challenges which led
to short term delay production.

5.2.2 PROFITABILITY RATIOS:
PBT Margin (%) Net Profit Margin (%)

28.14
19.07
19.94
14.04
3.18 0.65 2.81

-6.64 0.83
-6.89

FIGURE 11 : PBT MARGIN (%)
FIGURE 12 : NET PROFIT MARGIN (%)
Return on Networth / Equity (%)

49.9
44.4
12.83
2.47
-21.62
FIGURE 13 : RETURN ON NETWORTH / EQUITY (%)

Return on Capital Return on Assets (%)

Employed (%)
30.73
62.03
56.58
25.13
14.99 18.84
-5.15 0.57 3.37

-8.13
16-Mar 17-Mar 18-Mar 19-Mar 20-Mar 16-Mar 17-Mar 18-Mar 19-Mar 20-Mar
FIGURE 14 : RETURN ON CAPITAL EMPLOYED (%)
FIGURE 15 : RETURN ON ASSETS (%)
Total Debt/Equity (X)

2.37 2.26
1.82
0.54
0.07
FIGURE 16 : TOTAL DEBT/EQUITY (X)

INTERPRETATION:
It can be seen from the chart that the margin ratios that are PBT margin and NP margin are continuously
increasing over the period of five years which shows that the company is able to convert its increased
sales into profit.
The PBT margin has shown the increase of 34 % and NP margin has shown the increase of 25 % over the
last five years.
The return ratios of the firm that Return on Equity, Return on Capital Employed, Return on Assets and
Debt to Equity ratios are also improving which shows the firm is able to generate good returns to its
shareholders. All the ratios except the Return on Equity has shown a little decline in 2020 as compared
to 2019 as the debt of the company has decreased over the period which can be seen in figure 16
because of which net profit after interest gets decreased which decreases the profit of the firm.
The Debt Equity ratio is showing that the firm is on the way to become debt free as the debt of the firm
is constantly decreasing and its Equity capital is also stable.
This is all about the annual results which doesn’t show the effect of Covid-19 as data is only till March
2020. While analyzing the quarterly results we can see that the firms has been effected due to Covid-19.
The revenue of the firm has decreased in quarter June 2020 as compared to previous quarter June 2019
which has effected the profit of the firm.
Though the revenue of the company has decreased by 6 % as compared to previous quarter, PBT has not
decreased in June 2020 as compared to June 2019 as the debt of the company has decreased by
significant amount. Because of this, the PBT margin of the company based on quarterly data is showing
positive picture.
The net profit of the firm has also increased in June 2020 as compared to June 2019 as in the quarter the
June 2020, the employee cost of the company was low as the firms were shut down or few workers
were working owing lockdown and also the interest of the company to be paid has also decreased due
to decrease in debt. So NPT margin is also showing a better position of the company.
Also the though the previous quarter of March 2020 was worst hit due to Covid-19, there is
improvement in June 2020 which indicates that the situation may improve in next quarters.
Also IOL Chemicals and Pharmaceuticals (IOLCP) has successfully set up a new Unit-VII to manufacture
Metformin with an installed capacity of 7,200 MT per annum which will help company generate more
profit.

5.2.3 LIQUIDITY RATIOS:
Current Ratio (X) Quick Ratio (X)

2.38
1.9
1.27 1.27 1.26
1.71
1.16
0.6
0.47 0.46
FIGURE 17 : CURRENT RATIO (X)
FIGURE 18 : QUICK RATIO (X)
INTERPRETATION:
The liquidity ratios shows the company’s ability to meet its short term obligations and it is a major
measure of financial health of the company.
From the Figure 19 and Figure 20, it can be seen that both the main liquidity ratios of the firm that are
current ratio and quick ratio are continuously increasing.
The current assets of the firm are continuously increasing from 2016 to 2020. From 360.24 crores in
2016, the current assets of the firm has increased to 670.94 crores in 2020. While the current liabilities
of the firm increased in between 2016-2018 but remained somewhere around 283.56 crores in 2020 not
much increased as compared to 2016. This led to constant increase in current and quick ratios of the
firm.
These ratios shows the positive picture of the firm showing fundamentals of the firm to be strong.

5.2.4 VALUATION RATIOS:
Enterprise Value (Cr.) EV/Net Operating

Revenue (X)
1310.62
1.48
857.28 821.04 903.39 1.07
763.91
0.83 0.78
0.48
FIGURE 19 : ENTERPRISE VALUE (CR.)
FIGURE 20 : EV/NET OPERATING REVENUE (X)
EV/EBITDA (X) MarketCap/Net

Operating Revenue
(X)
16.3
0.74
0.64
0.5 0.53
7.38 6.52 0.45
3.12
1.53
FIGURE 21 : EV/EBITDA (X)
FIGURE 22 : MARKETCAP/NET OPERATING REVENUE (X)

Price/BV (X) Price/Net Operating

Revenue
2.32 2.28
2.07 0.74
1.88 0.64
0.5 0.53
1.23 0.45
FIGURE 23 : PRICE/BV (X)
FIGURE 24 : PRICE/NET OPERATING REVENUE
Earnings Yield
0.36
0.22
0.06
-0.09 0.01
FIGURE 25 : EARNINGS YIELD

INTERPRETATION:
The valuation ratios of the firm is also showing positive picture of the firm except in March 2020
because of the outbreak of Covid-19.
It can be seen from the charts that the enterprise value of the firm has been continuously increasing till
2019, however it declined in March 2020 owing to Covid-19.
The pandemic created panic among the shareholders which led to decreasing value of share price of the
firm leading to decrease in enterprice value of the firm. However the situation has somewhat improved
after March and so the share price of the stock has shown a tremendous increase because of which in
the next year, its enterprise value will show a huge increase.
It can be seen from the Figure 22 and Figure 23 that EV/Net operating revenue and EV/EBITDA are
showing a decline in charts because the Net operating revenue and EBITDA are rising at higher rate as
compared to rate of increase in enterprise value of the firm.
Figure 25 and Figure 26 shows that the Price/BV and Price/Net Operating Revenue of the firm are
declining because of the same reason of higher rate of increase in net operating revenue and Book
Value as compared to rate of increase in Price of the share of the company.
Figure 27 shows the earning yield of the company. The earnings yield is the EPS (Earning per Share) of
the firm for the most recent 12-month period divided by the current market price per share. It is one
indication of value of the stock; a low ratio indicates an overvalued stock and a high value indicates an
undervalued stock. So from the figure, it can be seen that the firm’s earning yield is increasing which
shows the firm is undervalued.

6.FINDINGS:
6.1 WHY TO GO FOR THIS STOCK:
Quarterly Sales Annual Sales

511.25 1894.47
492.8
1685.33
460.11
448.96 441.46
983.3
710.65
580.42
August-19
September-19
October-19
November-19
December-19
January-20
February-20
March-20
April-20
May-20
July-19
June-19
June-20
FIGURE 25 : QUARTERLY SALES
FIGURE 26 : ANNUAL SALES
Quarterly Net Profit Annual Net Profit

361.29
127.54
85.32 87.7 98.01 90.26 236.7
27.7
4.67
-40.03
FIGURE 27 : QUARTERLY NET PROFIT
FIGURE 28 : ANNUAL NET PROFIT

Net CashFlow From Share Capital

Operating Activities
56.89 56.89
273.17
56.21 56.21 56.21

119.72
83.34
17.7 0
Figure 29 : NET CASHFLOW FROM OPERATING ACTIVITIES
FIGURE 30 : SHARE CAPITAL
Reserves & Surplus DEBT

756.65 306.88 302.19 291.79
219.97
408.13
79.73
132.49 159.53
128.92
FIGURE 31 : RESERVES & SURPLUS
FIGURE 32 : DEBT

Return on Networth / Total Debt/Equity (X)

Equity (%) 2.37
2.26
49.9
1.82
44.4
12.83 0.54
-21.62 2.47 0.07
FIGURE 33 : RETURN ON NETWORTH / EQUITY (%)
FIGURE 34 : TOTAL DEBT/EQUITY (X)
Net Profit/Share (Rs.)

63.51
41.61
4.93
-7.12 0.83
FIGURE 35 : NET PROFIT/SHARE (RS.)

INTERPRETATION:
The fundamentals of the company are strong which can be concluded from the following analysis:
1) Sales:
 The sales of the company has increased by 226.40 % over the period of five years from 2016 to
2020.
 Till quarter December 2019, the company’s sales has been going up, but due to outbreak of
Covid-19, its sales in March, 2020 has declined from 511.25 crores to 441.46 crores that is by
13.65 %, but the its sales in quarter June, 2020 shows the improvement.
 As compared to the quarter June 2019, the sales of the quarter June 2020 has decreased by 6 %.
 As compared to March 2020 quarterly sales, its revenue in June, 2020 increased by 4 % though it
is less as compared to its previous performance before Covid-19, but it is improving which is a
positive sign.
2) Net Profit:
 Profit of the company has been continuously improving before Covid-19 but after its outbreak,
its profit declined due to decrease of sales in March. Its profit declined by 13.71 % in quarter
March, 2020 as compared to profit of previous quarter.
 However its profit showed improvement of 12.8 % in Quarter June, 2020 as compared to March,
2020.
 Though the revenue of the company has decreased by 6 % as compared to previous quarter,
PBT has not decreased in June 2020 as compared to June 2019 as the debt of the company has
decreased by significant amount.
 The annual reports of the firm show increase in profit over the period of five years.
 The net profit of the firm has also increased in June 2020 as compared to June 2019 as in the
quarter the June 2020, the employee cost of the company was low as the firms were shut down
or few workers were working owing lockdown and also the interest of the company to be paid
has also decreased due to decrease in debt. So NPT margin is also showing a better position of
the company.
 Also the though the previous quarter of March 2020 was worst hit due to Covid-19, there is
improvement in June 2020 which indicates that the situation may improve in next quarters.
 The net profit of the firm is increasing so the net profit per share is also improving.
 Also IOL Chemicals and Pharmaceuticals (IOLCP) has successfully set up a new Unit-VII to
manufacture Metformin with an installed capacity of 7,200 MT per annum which will help
company generate more profit.
3) Net cash flows from operating activities:
 The cash flows of the firm from operating activities has also shown a drastic improvement over
the period of Five years.
 It has increased by 144 % over the period from 2016 to 2019, though in 2020 the company has
not disclosed its figures because of negative effect of Covid-19.
 The increase in cash flows from operating profit shows that the company is able to generate
cash from its core activities which is a positive sign.

4) Equity Share Capital:

 The equity share capital of the firm has been constant over the period from 2016 to 2020
and it has slightly increased in 2019-2020.
 It shows that the owners of the firm has faith in the future earnings of the firm.
5) Reserves and Surplus:
 The reserves and surplus of the firm are also increasing continuously over the period of five
years from 2016-2020 which shows it is safe to invest in the company.
6) Debt to Equity ratio:
 The debt of the company has been continuously decreasing over the period of five years which
also is a sign of safety to invest in this company.
7) Return on Equity:
 Return on Equity of the firm has also been increasing over the period from 2016-20 which shows
the firm is able to use investors fund effectively.
6.2 IMPACT OF COVID:

 Currently, generic drugs are playing a crucial role in the fight against COVID–19. India has been
meeting more than 20 per cent of the world and almost 50 per cent of the US’s generic drug
requirements. Unfortunately, Indian manufacturers rely heavily on China for key starting
materials (KSMs), intermediate and APIs with China catering to nearly 70 per cent of Indian
pharma companies’ requirements.
 India, which was among the leading manufacturers in the API once upon a time, now imports
more than 70% of the API and intermediates from China and this is truly a matter of great
concern for all us. India’s chief national security advisor Ajit Dobhal has already cautioned us in
his 2014 report that importing API in such huge quantity and that too from only country -China,
is certainly a “National Threat”.
 In some specific APIs, like cephalosporins, azithromycin and penicillin, the dependence is as high
as 80 to 90 per cent. Additionally, for some input materials, even if alternate sources are
available, China remains the preferred source given the economical rates.
 But the supply chain has been disrupted as China witnessed a lockdown of over two months
from January 2020 to March 2020, while it battled COVID-19.
 Indian drug manufacturers face other challenges as well. An Indian pharmaceutical facility can
sell drugs in the US only after it has been inspected and approved by the US FDA. With the ban
on international travel, inspection is naturally out of question, rendering it impossible for Indian
drug companies to sell in the US and other overseas markets. The pandemic has also forced
generic drug manufacturers, both contract and captive, to delay their plans for new product
launches.
 Some Indian pharma facilities had to be shut as workers tested positive for COVID–19. Plants
that are operational are producing less due to manpower crunch amid lockdown and social
distancing measures. In short, production timelines have changed drastically.

 Logistics remains a big challenge for pharma companies during the COVID-19 pandemic. Indian
pharma companies initially faced challenges in the transportation of active pharmaceutical
ingredients (APIs) and formulations which created short-term unavailability of some medicines.
 The COVID 19 outbreak has also presented many Indian pharmaceutical companies an
opportunity to become a preferred alternate hub for manufacturing APIs and intermediates.
 India has three key players - Solara Active Pharma Sciences, Granules India, and IOL Chemicals
and Pharmaceuticals which manufactures APIs.
 As IOL is one of the manufacturers of APIs, the demand of its product has increased and having
recognized this opportunity and declaring Indian pharma’s dependence on Chinese APIs a threat
to national security, the central government has approved a slew of measures to promote
manufacturing of APIs and KSMs within the country which is a positive point for IOL and other
pharma companies.
 The Indian government recently undertook applaudable steps by proposing an incentive
package of 13.76 billion Indian Rupees (approximately $181 million) for the promotion of
domestic manufacturing of critical key starting materials, drug intermediates, APIs and medical
devices.
 With China losing credibility on account of not disclosing information on the virus or the severity
of the outbreak on time and thereby contributing to its development into a pandemic,
government leaders and businesses are looking at other alternative low-cost nations to source
supplies. India could directly benefit from this. The country has a robust pharma sector, with
proven expertise in drug manufacturing and treatment. This got further highlighted when the
country quickly ramped up production of Hydroxychloroquine, a key drug used in the fight
against the virus.
 Although India depends on China to meet its bulk drug requirement, steps taken by the Indian
government to incentivise the production of APIs and KSMs under the ‘Make in India’
programme will help in reducing this dependence. The promotion of bulk drug parks under this
initiative would help India become self-sufficient in drug manufacturing, from KSMs to generic
formulations.
 Manufacturing volumes after declining to 50%-60% in April 2020, given the strict lock-down, has
improved significantly to 60%-80% of the original capacities during May-June 2020. The overall
manufacturing activities had reduced, given the lack of manpower availability and lower
availability of transportation for the staff in the initial days as reported by Pharma companies
 Talking about the performance of pharma stocks, they are performing very well. The prices of
shares of IOL has also been increasing after Covid-19 as people anticipate the demand of drugs
to cure Covid-19 is going to increase they buy pharma stocks and also the financial performance
and fundamentals of IOL company is strong which encourage the people to invest in IOL for long
term.
 From the below given figures showing daily and quarterly prices of the share, it can be seen that
the stock is not much affected by Covid-19. It is showing a good performance. The figure shows
price till 21st August, 2020 which is 817 which has raised from 171 since 1st January, 2020 which
is increase of 371 %, a huge profit.

DAILY CLOSING PRICE OF SHARE

900
800
700
600
500
PRICE
400
300
200
100
0
1-Jan-20 1-Feb-20 1-Mar-20 1-Apr-20 1-May-20 1-Jun-20 1-Jul-20 1-Aug-20
FIGURE 36 : DAILY CLOSING PRICE OF SHARE
QUARTERLY CLOSING PRICE OF SHARE

900
800
700
600
500
PRICES
400
300
200
100
0
FIGURE 37 : QUARTERLY CLOSING PRICE OF SHARE

7.CONCLUSION:
IOLCP is expanding its API product portfolio and improving cost competitiveness through efficient
manufacturing processes and systems and growing relationships with major Indian and foreign generic
companies for the sale of APIs. Its APIs are exported worldwide and key markets include Europe, Latin
America, Africa and the Middle East. Ethyl Acetate has varied uses in different industries like
pharmaceuticals, flexible packaging and printing ink manufacturing, paints and adhesives, etc. Its key
markets in chemicals are African countries, Middle East, SAARC countries and Russia. All its products are
in demand.
Also IOL Chemicals and Pharmaceuticals (IOLCP) has successfully set up a new Unit-VII to manufacture
Metformin with an installed capacity of 7,200 MT per annum.
Metformin is primarily used for the treatment of diabetes. The company already has manufacturing
facilities of Metformin (Unit-IV) with an existing installed capacity of 4,000 MT per annum. With the
installation of Unit VII, the total manufacturing capacity of Metformin has now increased by about 3
folds at 11,200 MT per annum as compared to existing capacity.
The new manufacturing Unit-VII has been set up with a capex of about Rs. 28 crore, which has been
funded fully through internal accruals only. The new manufacturing Unit-VII has been established at the
existing plant site of the company at Barnala.
The financials of the company are strong. It is continuously improving its performance and Covid-19 has
provided an opportunity to the company as company is the manufacturer of APIs which are in demand
now because of supply disruptions in import from China which.
IOLCP is an opportunity in a decade and certainly is a potential multibagger.

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9.ANNEXURES:
9.1 QUARTERLY INCOME STATEMENT:

QUARTERLY RESULTS OF IOL CHEMICALS AND JUN MAR DEC SEP JUN
PHARMACEUTICALS (in Rs. Cr.) '20 '20 '19 '19 '19
Net Sales/Income from operations 460.11 441.46 511.25 448.96 492.8
Other Operating Income -- -- -- -- --
Total Income From Operations 460.11 441.46 511.25 448.96 492.8
EXPENDITURE
Consumption of Raw Materials 251.79 247.12 279.51 253.13 264.29
Purchase of Traded Goods -- -- -- -- --
Increase/Decrease in Stocks -3.55 -4.66 9.78 -0.73 16.57
Power & Fuel -- -- -- -- --
Employees Cost 24.28 25.07 24.06 24.08 23.99
depreciat 9.36 9.36 8.94 8.84 8.59
Excise Duty -- -- -- -- --
Admin. And Selling Expenses -- -- -- -- --
R & D Expenses -- -- -- -- --
Provisions And Contingencies -- -- -- -- --
Exp. Capitalised -- -- -- -- --
Other Expenses 35.47 37.08 38.4 39.56 43.34
P/L Before Other Inc. , Int., Excpt. Items & Tax 142.76 127.49 150.56 124.08 136.02
Other Income 5.8 5.35 3.96 3.39 3.32
P/L Before Int., Excpt. Items & Tax 148.56 132.84 154.52 127.47 139.34
Interest 1.82 2.76 3.76 6.09 8.32
P/L Before Exceptional Items & Tax 146.74 130.08 150.76 121.38 131.02
Exceptional Items -- -- -- -- --
P/L Before Tax 146.74 130.08 150.76 121.38 131.02
Tax 19.2 39.82 52.75 33.68 45.7
P/L After Tax from Ordinary Activities 127.54 90.26 98.01 87.7 85.32
Prior Year Adjustments -- -- -- -- --
Extra Ordinary Items -- -- -- -- --
Net Profit/(Loss) For the Period 127.54 90.26 98.01 87.7 85.32
Equity Share Capital 58.71 56.89 56.89 56.89 56.89
Reserves Excluding Revaluation Reserves -- -- -- -- --
Equity Dividend Rate (%) -- -- -- -- --
EPS BEFORE EXTRA ORDINARY
Basic EPS 22.3 15.87 17.22 15.42 15
Diluted EPS 22.3 15.74 17.22 15.42 15
EPS AFTER EXTRA ORDINARY

Basic EPS. 22.3 15.87 17.22 15.42 15

Diluted EPS. 22.3 15.74 17.22 15.42 15
PUBLIC SHARE HOLDING
No Of Shares (Crores) -- -- -- -- --
Share Holding (%) -- -- -- -- --
PROMOTERS AND PROMOTER GROUP SHAREHOLDING
A) PLEDGED/ENCUMBERED
#NAME? -- -- -- -- --
- Per. of shares (as a % of the total sh. of prom. and
promoter group) -- -- -- -- --
- Per. of shares (as a % of the total Share Cap. of the
company) -- -- -- -- --
B) NON-ENCUMBERED
- Number of shares (Crores). -- -- -- -- --
- Per. of shares (as a % of the total sh. of prom. and
promoter group). -- -- -- -- --
- Per. of shares (as a % of the total Share Cap. of the
company). -- -- -- -- --

9.2 ANNUAL INCOME STATEMENT:

Annual Mar-20 Mar-19 Mar-18 Mar-17 Mar-16
Sales 1,894.47 1,685.33 983.3 710.65 580.42
Other Income 16.02 10.37 1.9 1.25 1.23
Total Income 1,910.49 1,695.70 985.2 711.9 581.64
Total Expenditure 1,356.32 1,308.13 889.55 638.29 558.72
EBIT 554.17 387.57 95.65 73.61 22.92
Interest 20.93 51.42 64.35 67.68 61.47
Tax 171.95 99.45 3.6 1.26 1.48
Net Profit 361.29 236.7 27.7 4.67 -40.03

9.3 BALANCE SHEET

Equities & Liabilities Mar-20 Mar-19 Mar-18 Mar-17 Mar-16
Share Capital 56.89 56.89 56.21 56.21 56.21
Reserves & Surplus 756.65 408.13 159.53 132.49 128.92
Current Liabilities 282.29 256.89 314.15 326.6 283.86
Other Liabilities 79.73 219.97 291.79 302.19 306.88
Total Liabilities 1,175.56 941.88 821.68 817.49 775.87
Assets
Fixed Assets 484.95 438.74 412.59 395.14 403.81
Current Assets 670.94 488.06 396.14 413.59 360.24
Other Assets 19.67 15.08 12.95 8.76 11.82
Total Assets 1,175.56 941.88 821.68 817.49 775.87
Other Info
Contingent Liabilities 0 96.68 18.53 8.65 14.92

9.4 CASH FLOW STATEMENT:
CASH FLOW OF IOL CHEMICALS AND

PHARMACEUTICALS (in Rs. Cr.) 20-Mar 19-Mar 18-Mar 17-Mar 16-Mar
12 12 12 12 12
mths mths mths mths mths
NET PROFIT/LOSS BEFORE EXTRAORDINARY ITEMS

AND TAX 0 336.15 31.3 5.93 -38.55
Net CashFlow From Operating Activities 0 273.17 119.72 83.34 17.7
Net Cash Used In Investing Activities 0 -63.04 -50.38 -22.78 -25.27
-
Net Cash Used From Financing Activities 0 197.46 -70.36 -59.78 9.27
Foreign Exchange Gains / Losses 0 0 0 0 0
Adjustments On Amalgamation Merger Demerger

Others 0 0 0 0 0
NET INC/DEC IN CASH AND CASH EQUIVALENTS 0 12.67 -1.02 0.78 1.7
Cash And Cash Equivalents Begin of Year 0 0.74 1.76 0.98 12.99
Cash And Cash Equivalents End Of Year 0 13.41 0.74 1.76 14.69
9.5 SHARE PRICES OF IOL (DAILY)

Date Open High Low Close Adj Close Volume

8/21/2019 187 191.449997 184.600006 186.100006 183.317551 432275

8/22/2019 187.649994 189.75 182.5 183.850006 181.101196 272099
8/23/2019 183.25 184 171.649994 176.600006 173.959595 429863
8/26/2019 182 182.800003 171.100006 178.550003 175.880432 346818
8/27/2019 180 183.899994 178.899994 181.199997 178.490799 250026
8/28/2019 182 184.800003 180.800003 181.600006 178.884827 243364
8/29/2019 180.899994 182.699997 171.600006 179.899994 177.210236 158544
8/30/2019 177.550003 180.149994 175.149994 177.850006 175.190903 153250
9/3/2019 176.75 177.75 172.899994 173.300003 170.708923 128061
9/4/2019 173.800003 173.899994 165.199997 166.300003 163.813583 207302
9/5/2019 168.75 169.800003 165.199997 166.199997 163.715073 135601
9/6/2019 167.850006 173.899994 167.25 170.699997 168.147797 294499
9/9/2019 172 177.800003 171.350006 176 173.368546 238690
9/11/2019 177.5 190.949997 177.5 187.75 184.942871 489966
9/12/2019 189.800003 193.050003 184 185.350006 182.578766 291334
9/13/2019 184 187.199997 182 184 181.248947 129873
9/16/2019 182 185.550003 179.5 183.649994 180.904175 227775
9/17/2019 183.800003 189.699997 180.100006 181.899994 179.180328 316582
9/18/2019 184.25 185 179 180.699997 177.998276 145840
9/19/2019 182.149994 182.350006 175 176.600006 173.959595 141394
9/20/2019 179.050003 186.699997 172.550003 183.5 180.756424 339731
9/23/2019 186.399994 198.699997 186.399994 191.100006 188.242798 442495
9/24/2019 192.699997 192.800003 184 185.350006 182.578766 245922
9/25/2019 185.050003 187.75 178.75 182.699997 179.968369 176597
9/26/2019 184.300003 185.100006 182.050003 183.449997 180.707169 135374
9/27/2019 183.050003 184.449997 177.649994 179.25 176.569962 142739
9/30/2019 178.949997 184.449997 175.550003 183.199997 180.460892 257971
10/1/2019 185.050003 186.899994 176 177.5 174.84613 251166
10/3/2019 175.5 176 171.5 172.199997 169.625366 186563
10/4/2019 173.149994 175.699997 170.5 171.449997 168.886581 125067
10/7/2019 172.300003 175 167.100006 168.199997 165.685165 123614
10/9/2019 168.949997 173.949997 165.449997 169.75 167.212006 206769
10/10/2019 169.5 171.300003 166.100006 167.399994 164.897125 105964
10/11/2019 168 173.75 168 172.050003 169.477615 257359
10/14/2019 173.800003 173.949997 167.050003 167.649994 165.143387 231987
10/15/2019 169 175.800003 167.649994 174.350006 171.743225 256743
10/16/2019 175.699997 180.699997 175.100006 177.199997 174.550613 221693
10/17/2019 177.199997 179.699997 174.600006 175.899994 173.270035 117345
10/18/2019 175.899994 176.899994 171.199997 172.100006 169.526871 201128
10/22/2019 173.25 177.5 172.199997 173.850006 171.250702 212280

10/23/2019 174.600006 176.800003 173.5 174.199997 171.595459 136246

10/24/2019 175.199997 176.649994 171.649994 172.399994 169.822372 155417
10/25/2019 172.949997 174.550003 171.050003 172.75 170.167145 102480
10/27/2019 null null null null null null
10/29/2019 190 193.5 183.050003 183.850006 181.101196 485892
10/30/2019 184.399994 190.800003 183 184.949997 182.184738 254359
10/31/2019 185.800003 192.699997 184.550003 188.449997 185.632401 307603
11/1/2019 188.899994 203.399994 188.899994 197.649994 194.694855 771489
11/4/2019 199.800003 207.699997 199.800003 205.25 202.181229 481633
11/5/2019 207 211 200.75 203.399994 200.358871 517828
11/6/2019 203.5 206.699997 200.25 201.449997 198.438034 243977
11/7/2019 202.600006 202.800003 195.050003 198.300003 195.335144 236774
11/8/2019 197.949997 204.800003 197.100006 200.399994 197.403732 259818
11/11/2019 202 211.899994 201.199997 210.399994 207.254211 640804
11/13/2019 212 212.5 202.149994 202.800003 199.767853 410145
11/14/2019 202.050003 204.399994 195.399994 196.5 193.562042 379978
11/15/2019 197 201.399994 182.149994 186.050003 183.268295 951038
11/18/2019 186 188.699997 179.550003 180.899994 178.195282 331273
11/19/2019 180 187.449997 179.199997 182.850006 180.116135 276479
11/20/2019 183.899994 184.399994 180.300003 180.800003 178.096786 156526
11/21/2019 180.800003 182 176.600006 177.300003 174.649124 191546
11/22/2019 178.449997 180.949997 176.25 178.649994 175.978928 187097
11/25/2019 179 180 176 176.449997 173.811829 149708
11/26/2019 177.550003 178.800003 175 175.449997 172.826767 126756
11/27/2019 176 181 175.75 178.399994 175.732666 185667
11/28/2019 179.25 179.850006 175.699997 176.300003 173.664063 142853
11/29/2019 176.449997 177 173 173.699997 171.102936 167914
12/2/2019 174.5 175 170.050003 170.800003 168.246307 160854
12/3/2019 171.399994 177.800003 170 174.949997 172.334244 214218
12/4/2019 174 174 170.550003 171.75 169.182098 118586
12/5/2019 172.699997 173 170.350006 170.850006 168.295563 85217
12/6/2019 171.5 172 168.5 168.949997 166.42395 111376
12/9/2019 169 169.699997 165 165.350006 162.877792 183095
12/10/2019 165.350006 168.399994 162.100006 162.399994 159.971878 183585
12/11/2019 163.25 168.800003 162.100006 165.300003 162.828537 156148
12/12/2019 164.600006 167.899994 164.050003 165.050003 162.582275 80358
12/13/2019 166.050003 172.699997 166.050003 169.649994 167.113495 192710
12/16/2019 170.600006 174.5 170.5 171.949997 169.379105 120781
12/17/2019 172.949997 173.350006 168.5 171.550003 168.985092 91715
12/18/2019 173 173.550003 168.050003 168.850006 166.325455 112708

12/19/2019 169.5 170.850006 168 169.149994 166.620956 85549

12/20/2019 169.149994 170.350006 167.75 168.300003 165.783676 65846
12/23/2019 168.199997 171 168 169.449997 166.916473 80238
12/24/2019 170.600006 170.600006 167.100006 167.949997 165.438904 65445
12/26/2019 167.899994 169.699997 165.350006 166.75 164.256851 71465
12/27/2019 167 168.199997 165.350006 165.75 163.271805 100573
12/30/2019 166.949997 176.899994 165.449997 174.850006 172.235748 433525
12/31/2019 174.850006 179.800003 173 174.100006 171.496964 369944
1/1/2020 174.100006 175.300003 170.5 171.300003 168.738831 87392
1/2/2020 172 176.850006 170.350006 174.300003 171.69397 187466
1/3/2020 173.5 180 172.050003 174.949997 172.334244 262445
1/6/2020 173 173.699997 167.800003 168.25 165.734421 154963
1/7/2020 169.300003 171.75 169.050003 170.149994 167.606018 102374
1/8/2020 167.75 171 166 167.75 165.241898 225676
1/9/2020 170.199997 174.899994 169.449997 172.300003 169.723877 193934
1/10/2020 172.949997 177.649994 171 171.550003 168.985092 223260
1/13/2020 170.25 175.699997 170.25 171.949997 169.379105 106172
1/14/2020 173.050003 176 173 173.600006 171.00444 150255
1/15/2020 174.399994 177 173.300003 176 173.368546 230168
1/16/2020 177.399994 184.5 176.25 183.600006 180.854935 542236
1/17/2020 184 188.5 181.399994 183.199997 180.460892 386387
1/20/2020 184.649994 186.699997 178.600006 179.649994 176.963974 198575
1/21/2020 178 181.199997 177 178.600006 175.929688 148910
1/22/2020 179.850006 180.25 177 177.649994 174.993881 88583
1/23/2020 178.149994 179 175.100006 175.5 172.876022 115254
1/24/2020 175.800003 179.75 175.199997 177.800003 175.141647 159875
1/27/2020 175.850006 201.300003 175.800003 193.600006 190.705414 2534785
1/28/2020 195.5 199.350006 185 188.550003 185.730911 720240
1/29/2020 190 192.699997 185.300003 186.75 183.957825 227731
1/30/2020 187.399994 187.399994 180 180.300003 177.604263 246972
1/31/2020 181.399994 185.899994 176 177.800003 175.141647 401499
2/3/2020 167.550003 174.399994 165.850006 170.550003 168.000046 191237
2/4/2020 171.100006 177.649994 171.100006 175.800003 173.171539 204213
2/5/2020 176.25 183.949997 174.949997 181.25 178.540054 341399
2/6/2020 181.550003 184.949997 180.350006 181.600006 178.884827 160044
2/7/2020 181.149994 186.949997 181.149994 185.5 182.726517 276184
2/10/2020 187.300003 192.5 185.949997 188.199997 185.386139 623135
2/11/2020 199.399994 204.899994 193.100006 193.850006 190.951675 2117716
2/12/2020 196.600006 196.75 186 186.600006 183.810074 519052
2/13/2020 187 187.800003 183.300003 184 181.248947 244779

2/14/2020 184.100006 199.199997 184.100006 195.850006 192.921768 1055749

2/17/2020 197.399994 218.800003 194.100006 207.100006 204.003571 2912857
2/18/2020 210.25 246.199997 210.149994 234.75 231.240158 6495921
2/19/2020 239.300003 257.399994 230.149994 234.5 230.993896 5061665
2/20/2020 234 245.949997 232.100006 235.699997 232.175949 1575518
2/24/2020 238 263.700012 238 254.75 250.941132 4133436
2/25/2020 260.649994 273.5 255 268.399994 264.387024 3144513
2/26/2020 276 310.450012 275.549988 298.649994 294.184753 7807300
2/27/2020 304 316.5 269.149994 273.75 269.657043 7509598
2/28/2020 265 266.75 246.399994 246.399994 242.715973 2564599
3/2/2020 252 263 221.800003 226.050003 222.670242 2376714
3/3/2020 230.649994 235.699997 215 221.699997 218.385269 2593409
3/4/2020 224.899994 232.75 220.949997 232.75 229.270065 2241720
3/5/2020 241 244.350006 240.649994 244.350006 240.696625 787018
3/6/2020 236.75 256.549988 232.149994 256.549988 252.714203 1679463
3/9/2020 256 266.799988 244.100006 250.300003 246.557663 2284313
3/11/2020 254.399994 260 242.050003 246.25 242.568222 955167
3/12/2020 235.100006 237.75 233.949997 233.949997 230.452118 63149
3/13/2020 222.300003 234.449997 222.300003 222.300003 218.976303 972659
3/16/2020 211.199997 214.149994 211.199997 211.199997 208.042267 227000
3/17/2020 203.75 205.899994 200.649994 200.649994 197.649994 387140
3/18/2020 190.75 192.199997 187.800003 187.800003 187.800003 257292
3/19/2020 178.449997 178.449997 178.449997 178.449997 178.449997 23915
3/20/2020 175.149994 187.350006 169.550003 170.550003 170.550003 1351895
3/23/2020 162.050003 162.050003 162.050003 162.050003 162.050003 39745
3/24/2020 158 166 153.949997 153.949997 153.949997 332628
3/25/2020 150 161.600006 146.300003 161.600006 161.600006 478312
3/26/2020 169.5 169.649994 161.699997 169.649994 169.649994 281476
3/27/2020 176 178.100006 165 169.850006 169.850006 406812
3/30/2020 162 176.949997 161.399994 174.100006 174.100006 372965
3/31/2020 179 181.550003 173.149994 175.899994 175.899994 209958
4/1/2020 177.5 184.649994 174.399994 184.649994 184.649994 434605
4/3/2020 191 193.850006 183.649994 193.850006 193.850006 289880
4/7/2020 203.5 203.5 203.5 203.5 203.5 16799
4/8/2020 213.649994 213.649994 213.649994 213.649994 213.649994 23157
4/9/2020 230 256.350006 227.5 256.350006 256.350006 1494981
4/13/2020 286.799988 295 270.549988 280.200012 280.200012 2240906
4/15/2020 281.399994 287 230.199997 257.899994 257.899994 1350284
4/16/2020 260 270 259.950012 263.25 263.25 391138
4/17/2020 269.5 274.799988 260.049988 261.450012 261.450012 313685

4/20/2020 273 273 260.350006 261.799988 261.799988 238773

4/21/2020 240.199997 275 240.199997 262.200012 262.200012 821197
4/22/2020 264.799988 269 260.049988 261.600006 261.600006 242630
4/23/2020 266.25 287 265.049988 274.100006 274.100006 1155240
4/24/2020 272.049988 284.899994 269.549988 273.549988 273.549988 596214
4/27/2020 278 283 273.600006 275.049988 275.049988 322179
4/28/2020 280 304.5 278 299.299988 299.299988 2930187
4/29/2020 312 322 301.25 303.899994 303.899994 2404414
4/30/2020 307.950012 311 286 289.25 289.25 1052846
5/4/2020 280 310.950012 271.299988 304.299988 304.299988 2896764
5/5/2020 310.25 318.799988 302.399994 306.399994 306.399994 2593509
5/6/2020 307.899994 311.850006 300.799988 304.350006 304.350006 836753
5/7/2020 309.100006 348.700012 307.600006 330.25 330.25 6337742
5/8/2020 333 340 322.100006 327 327 1928422
5/11/2020 330.899994 338 326 330.350006 330.350006 932780
5/12/2020 331.549988 368.799988 330.450012 363.450012 363.450012 4584327
5/13/2020 383 389.899994 365.200012 385.850006 385.850006 3437889
5/14/2020 382.450012 404.799988 368 388.100006 388.100006 4814000
5/15/2020 388.899994 396.5 380.149994 382.399994 382.399994 1573995
5/18/2020 382.5 385.700012 365 368.299988 368.299988 1345829
5/19/2020 371.899994 384 368.299988 372.299988 372.299988 1044861
5/20/2020 375.350006 393 373 387.75 387.75 1161480
5/21/2020 391.549988 409.549988 391.5 401.700012 401.700012 2142367
5/22/2020 400.399994 409 397.200012 401.899994 401.899994 1126856
5/26/2020 405 408.799988 396.049988 397.649994 397.649994 748633
5/27/2020 399.799988 401 378.100006 382.549988 382.549988 1092987
5/28/2020 383.850006 384.5 368.049988 368.75 368.75 935266
5/29/2020 381.200012 389 378 380.950012 380.950012 1302364
6/1/2020 383.799988 386.25 374 377.600006 377.600006 656307
6/2/2020 376.899994 397.75 369 390.450012 390.450012 2396624
6/3/2020 393 397.5 382.200012 385.649994 385.649994 950865
6/4/2020 385 394.75 379 388.350006 388.350006 1069069
6/5/2020 390 392.450012 381 383.549988 383.549988 613063
6/8/2020 385 389.600006 381 381.799988 381.799988 553063
6/9/2020 383.75 395 379.25 383.899994 383.899994 839460
6/10/2020 387 394.899994 384 391.649994 391.649994 1080999
6/11/2020 393.799988 424.350006 392.200012 409.950012 409.950012 3490757
6/12/2020 408 417.899994 402.299988 409.75 409.75 2124493
6/15/2020 389 389 370 371.899994 371.899994 1919063
6/16/2020 377 381 304 352.299988 352.299988 2361630

6/17/2020 348 384 344 381.100006 381.100006 2568188

6/18/2020 385 394.25 381.5 388.350006 388.350006 1146831
6/19/2020 392 392.299988 382.049988 383.850006 383.850006 583519
6/22/2020 386 390.25 377 385.850006 385.850006 744875
6/23/2020 388 421 386.100006 417.25 417.25 2562998
6/24/2020 423.799988 445 422 432.5 432.5 1955301
6/25/2020 433.799988 473.799988 426.899994 466.5 466.5 3111080
6/26/2020 476 485.600006 445.549988 454.549988 454.549988 1779733
6/29/2020 455 468 442 451.350006 451.350006 1158864
6/30/2020 455.049988 458.700012 441.049988 449.600006 449.600006 675824
7/1/2020 446 499 444.149994 495.299988 495.299988 3488573
7/2/2020 499.549988 504.649994 486 491.25 491.25 1474176
7/3/2020 491.549988 529.700012 482.75 523 523 3557195
7/6/2020 527 547.700012 519.950012 538.700012 538.700012 2029364
7/7/2020 540.299988 561.299988 531.549988 552.450012 552.450012 1961501
7/8/2020 559.700012 592.5 555 581.799988 581.799988 2340975
7/9/2020 595 634 582.599976 623.349976 623.349976 4555559
7/10/2020 637 722.650024 633.200012 695.25 695.25 6603183
7/13/2020 713 764.75 713 762.650024 762.650024 6252675
7/14/2020 780 833.799988 686.400024 694.5 694.5 12520489
7/15/2020 677 718 625.049988 628.049988 628.049988 5426222
7/16/2020 605.25 631.700012 577.650024 594.900024 594.900024 4919096
7/17/2020 601 654.349976 601 654.349976 654.349976 3325385
7/20/2020 674 719.75 670 716.950012 716.950012 3721948
7/21/2020 744 787 725 754.799988 754.799988 5359903
7/22/2020 758.599976 778.700012 710.099976 730.799988 730.799988 3222862
7/23/2020 744.900024 758.25 721.25 737.849976 737.849976 1763998
7/24/2020 735 754.900024 721 739.599976 739.599976 1655794
7/27/2020 749 752.900024 717.150024 723 723 899133
7/28/2020 729 780 716.299988 765.599976 765.599976 3123419
7/29/2020 773 807.799988 770 782.5 782.5 2531161
7/30/2020 790 801.450012 728 752.299988 752.299988 1910123
7/31/2020 759 788 750 780.5 780.5 1631204
8/3/2020 786 786 740 753.349976 753.349976 1810669
8/4/2020 749 769.900024 726.049988 744.650024 744.650024 1637863
8/5/2020 750 765 743.299988 750.450012 750.450012 947218
8/6/2020 756.400024 759.5 738.900024 741.049988 741.049988 655006
8/7/2020 746.75 757.900024 728.099976 741.75 741.75 1088959
8/10/2020 746.5 846 742 832.099976 832.099976 5027605
8/11/2020 846 852.5 784 795.799988 795.799988 1977038

8/12/2020 785 789 750 766.549988 766.549988 1516934

8/13/2020 770 808.5 766.599976 781.349976 781.349976 1590322
8/14/2020 785.549988 815 770 789.25 789.25 1808305
8/17/2020 797 814.950012 786.599976 799.200012 799.200012 1144938
8/18/2020 803.200012 857.5 799.200012 835.200012 835.200012 3257390
8/19/2020 839.5 844.799988 822.150024 826.400024 826.400024 813540
8/20/2020 815 838.700012 806.450012 811.099976 811.099976 877041
8/21/2020 818.400024 836 814.099976 817.25 817.25 1014312
9.6 SHARE PRICES OF IOL (QUARTERLY)

Date Open High Low Close Adj Close Volume
1-Sep-19 177.85 198.7 165.2 183.2 180.4609 4487746
1-Oct-19 185.05 193.5 165.45 188.45 185.6324 4346521
1-Nov-19 188.9 212.5 173 173.7 171.1029 6809303
1-Dec-19 174.5 179.8 162.1 174.1 171.497 3083936
1-Jan-20 174.1 201.3 166 177.8 175.1416 7695152
1-Feb-20 176 316.5 165.85 246.4 242.716 47188917
1-Mar-20 252 266.8 146.3 175.9 173.27 18322750
1-Apr-20 177.5 322 174.4 289.25 289.25 16319115
1-May-20 280 409.55 271.3 380.95 380.95 40836824
1-Jun-20 383.8 485.6 304 449.6 449.6 34342606
1-Jul-20 446 833.8 444.15 780.5 780.5 84273938
1-Aug-20 786 857.5 726.05 811.1 811.1 24152828
21-Aug-20 818.4 836 814.1 817.25 817.25 1014312

Fundamental Analysis of Iol (Industrial Organic Limited) Chemicals and Pharmaceuticals LTD and Impact of Covid-19 On It

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Fundamental Analysis of Iol (Industrial Organic Limited) Chemicals and Pharmaceuticals LTD and Impact of Covid-19 On It

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A PROJECT REPORT ON

TO WHOMSOEVER IT MAY CONCERN

her future endeavors.

For India Infoline Ltd.

Namisha Gupta Human Resource

Date:28th October,2020 Dr Ankita Kathiriya

B.K. School of Professional and Management Studies Page 1

Madhu Bhanushali (119114)

B.K. School of Professional And Management Studies

MBA (Full-time Batch 2019-2021)

B.K. School of Professional and Management Studies Page 2

B.K. School of Professional and Management Studies Page 3

B.K. School of Professional and Management Studies Page 4

B.K. School of Professional and Management Studies Page 5

B.K. School of Professional and Management Studies Page 6

FIGURE 1 : ANNUAL TURNOVER OF INDIAN PHARMACEUTICAL MARKET (US$ BILLION)........................... 19

B.K. School of Professional and Management Studies Page 7

1.1 ABOUT THE PROJECT:

1.2 ABOUT THE INDUSTRY:

India's biotechnology industry comprising biopharmaceuticals, bio-services, bio-agriculture, bio-industry

Investments and Recent Developments

B.K. School of Professional and Management Studies Page 8

B.K. School of Professional and Management Studies Page 9

1.3 ABOUT THE COMPANY:

B.K. School of Professional and Management Studies Page 10

1.3.1 PRODUCTS OF THE COMPANY:

TABLE 1 : ACTIVE PHARMA INGREDIENTS:

B.K. School of Professional and Management Studies Page 11

approaches can be conducted:

ii) It is easy to implement;

B.K. School of Professional and Management Studies Page 12

B.K. School of Professional and Management Studies Page 13

B.K. School of Professional and Management Studies Page 14

B.K. School of Professional and Management Studies Page 15

4.2 STATEMENT OF THE PROBLEM:

4.3 RESEARCH TYPE:

4.4 RESEARCH DESIGN:

4.5 DATA ANALYSIS:

4.6 LIMITATION OF THE RESEARCH:

4.7 FUTURE SCOPE OF THE RESEARCH:

B.K. School of Professional and Management Studies Page 16

5. ANALYSIS AND INTERPRETATION:

5.1 INDUSTRY ANALYSIS:

5.1.1 STRUCTURE OF PHARMA SECTOR IN INDIA:

ACTIVE PHARMACEUTICAL FORMULATIONS

BRANDED GENERICS BRANDED GENERICS

B.K. School of Professional and Management Studies Page 17

5.1.2 IMPORTANT SEGMENTS IN INDIAN PHARMACEUTICAL SECTOR:

Domestic APIs consumption is expected to reach US$ 18.8 billion by FY22.

Double-digit growth is expected over the next five years.

CONTRACT RESEARCH AND MANUFACTURING SERVICES (CRAMS):

It is the fragmented market with more than 1000 players.

The domestic market is expected to reach US$ 40 billion by 2030.

B.K. School of Professional and Management Studies Page 18

5.1.3 ANNUAL TURNOVER OF INDIAN PHARMACEUTICAL MARKET (US$

ANNUAL TURNOVER OF INDIAN PHARMACEUTICAL

2016 2017 2018 2019

FIGURE 1 : ANNUAL TURNOVER OF INDIAN PHARMACEUTICAL MARKET (US$ BILLION)

B.K. School of Professional and Management Studies Page 19

5.1.4 QUARTERLY GROWTH RATE IN INDIAN PHARMA MARKET (%):

QUARTERLY GROWTH RATE IN INDIAN PHARMA

FIGURE 2 : QUARTERLY GROWTH RATE IN INDIAN PHARMA MARKET (%)