Technical Analysis

A company's total stock value as measured by its market capitalization, also known as market
cap, is its number of outstanding shares. It is computed by dividing the stock's price by the total
number of shares that are currently outstanding. A corporation with 20 million shares trading at
$50 each, for instance, would have a $1 billion market valuation.

When assessing a company, investors should take market capitalization into account. It can be
used to gauge a company's financial health as well as to compare the sizes of other businesses.
For instance, a corporation with a high market capitalization is typically regarded as having
greater financial stability than a company with a low market capitalization.

Although market capitalization is a helpful tool for investors, it's vital to keep in mind that there
are other metrics that should also be considered when assessing a firm. It is important to consider
additional elements, such as a company's financial condition, growth potential, and competitive
environment.

Market Capitalization BDT (mn)

200,000.00
180,000.00
160,000.00
140,000.00
120,000.00
100,000.00
80,000.00
60,000.00
40,000.00
20,000.00
0.00
Beximco Square Pharma ACI Limited Acme Laboratories

The graph reveals that Square Pharma, with a market value of BDT 186,597.94 million, is the
most valuable pharmaceutical firm in Bangladesh. With a market capitalization of BDT
103,570.84 million, Beximco is in second place. The two smallest firms are ACI Limited and
Acme Laboratories, with market values of BDT 19,828.7 million and BDT 17,986.14 million,
respectively.

Square Pharma may have a larger market capitalization than the other businesses for a number of
reasons. In Bangladesh, Square Pharma is the biggest pharmaceutical firm and offers a wide
range of goods and services. Second, Square Pharma has a protracted track record of financial
success and security. Third, Square Pharma is well-known to consumers in Bangladesh and has a
solid brand reputation.

The second-most valuable company on the DSE in the pharmaceutical industry is Beximco.
Beximco is likewise a sizable, well-known business with a solid reputation for its brand.
However, because Beximco's product portfolio is more concentrated on generic medications and
Square Pharma also produces branded drugs, Beximco has a lower market value than Square
Pharma.

The two small companies in the DSE's pharmaceutical industry are ACI Limited and Acme
Laboratories. Both businesses are less well-established than Square Pharma or Beximco and
have a relatively limited range of products. They have smaller market capitalizations as a result.
Price Trend Analysis

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Beximco Square Pharma

ACI Limited Acme Laboratories

Price Trend data analysis of the stocks of these four companies: Beximco, Square Pharma, ACI
Limited, and Acme Laboratories for the given period of 10th July 2023 to 10th August 2023.

1) Beximco:

Price Range: Constant at 115.6

Movement: No change over the period.

2) Square Pharma:

Opening Price: 209.8

Highest Price: 213.3 (18th July)

Lowest Price: 209.8 (Multiple dates)

Closing Price: 211.6 (10th August)

Movement: Slight upward movement during the middle of the month but not significant.

3) ACI Limited:

Price Range: Constant at 260.2

Movement: No change over the period.

4) Acme Laboratories:

Opening Price: 85

Highest Price: 86 (17th July)

Lowest Price: 85 (Multiple dates)

Closing Price: 85 (10th August)

Movement: Very little upward movement during the middle of the month, then went back down.

Detailed Analysis & Recommendations:

Beximco - The share price of Beximco held steady at 115.6 over the course of the observation.
The absence of volatility is indicated by a stock price that doesn't vary. There are various ways to
read this. On the one hand, it stands for stability and implies that the stock hasn't been negatively
impacted by market occurrences over this time period (10th July – 10th Aug 2023). However, the
absence of growth or returns is a drawback.

Given the steadiness but lack of movement, we would advise **holding** for Beximco. If you're
a current investor, it can be a good idea to wait and see if there are any changes in the market.
This is especially true if you think the firm has long-term promise or if your portfolio depends on
this stock for stability. However, unless you have firm convictions about the possibilities for the
future, it might not be the best moment to buy right now if you're a potential investor.
Square: The share price of Square Pharma increased somewhat in the middle of July, peaking at
213.3, but by early August, it had returned to its initial level. The stock's capacity to demonstrate
growth in what appears to be a declining market (based on the statistics of competing businesses)
is noteworthy in this case. This would imply that Square Pharma has attracted the market's
attention for some reason, either related to its commercial activities or outside news.

I would advise a cautious **buy** for Square Pharma in light of the modest growth and the
potential for future movements based on this trend. However, it would depend on the general
state of the market and the company's fundamentals. If outside research indicates Square Pharma
has good development prospects, the current pattern can be an early indicator of steady
expansion.

ACI Limited: Like Beximco, ACI Limited exhibited no movement during the month. Once
more, this may appear to represent steadiness in the face of market factors, but it also shows a
lack of development. Holders of this stock won't experience any gains in the form of rising stock
prices.

Therefore, ACI Limited would receive the same advice we gave Beximco: **hold**. Given the
steadiness, investors might want to hold onto their positions, but they should keep a careful eye
on any business announcements or outside events that could affect future price moves.

ACME Laboratories: Acme Laboratories showed minimal price movement, with a very brief
increase in the middle of July. However, by early August, it reverted to its starting price. This
indicates that while there might be factors that can cause minor fluctuations in the stock price,
they are not strong enough to maintain a consistent upward trend.

For Acme Laboratories, my recommendation would be to **hold**. Given that the stock hasn't
shown a consistent decline and has managed to return to its starting price, selling might be
premature. However, the lack of consistent growth also means that it might not be the best time
to buy.
In conclusion, stock price movement can give insights into market sentiment about a company,
but it's always crucial to factor in external information like company financials, market trends,
and other news. The recommendations provided are based on the given data, and any investment
decisions should ideally be made considering a wider array of information.
BETA Analysis

Beta
Beximco 1.70
Square Pharma 0.82
ACI Limited 0.87
Acme Laboratories 0.88

A beta of 0.82 indicates that Squarepharma is 18% less volatile than the market. Due to this,
investors searching for a relatively secure investment might consider Squarepharma. With a beta
of 1.7, Beximco is 70% more volatile than the market. As a result, Beximco is a riskier
investment with a higher chance of profit. ACI Limited is 13% less volatile than the market,
according to its beta value of 0.87. Due to this, ACI Limited is a solid option for investors
seeking a little less volatile investment than Squarepharma. A beta of 0.88 indicates that Acme
Laboratories is 12% less volatile than the market. Because of this, Acme Laboratories is a wise
alternative for investors searching for a stock with a volatility profile similar to that of
Squarepharma.

We would advise purchasing Squarepharma shares considering my findings. The least erratic of
the four stocks is Squarepharma, which also has a solid track record of growth and profitability.
For investors looking for a somewhat stable investment with the potential for long-term growth,
we think Squarepharma is an excellent choice.

Additionally, we advise buying shares of Acme Laboratories and ACI Limited. They are less
volatile than the market. For investors searching for a secure investment with the potential for
moderate development, we think ACI Limited and Acme Laboratories are suitable choices.

I do not advise purchasing Beximco stock. The most unstable of the four stocks is Beximco
considering the stock Beta. Only investors who are at ease with taking on a lot of risk and who
are searching for the possibility of significant returns should consider Beximco, in my opinion.
Conclusion

Based on my analysis, I would suggest that:

Purchase Square Pharma: Square Pharma has a proven track record of growth and profitability,
making it the least volatile of the four stocks. For investors seeking a moderately secure
investment with the potential for long-term growth, it is also a wise alternative.

Hold ACI Limited and Acme Laboratories: These stocks are less erratic than the market and
have a proven track record of profitability and growth. They are appropriate options for investors
looking for a safe investment with the possibility of moderate growth.

Beximco should not be purchased since it is the riskiest of the four stocks and has the most
variable stock price. Beximco should only be considered by investors who are comfortable
taking on a lot of risk and who are looking for the potential for substantial rewards.

The following are the factors that affected my choice:

 Square Pharma: Square Pharma has a proven history of profitability and growth. Over the
past few years, the company has consistently increased both its revenue and earnings.
Additionally, it has a broad distribution network and a well-known brand name. Given
the anticipated increase in demand for pharmaceutical products in Bangladesh, Square
Pharma is well-positioned to expand going forward.

 Acme Laboratories and ACI Limited are two additional reputable pharmaceutical firms
with a proven track record of profitability. They have a big selection of goods and
services as well as an effective distribution system. Given that there would likely be an
increase in demand for pharmaceutical items in Bangladesh, Acme Laboratories and ACI
Limited are also well-positioned to expand.

 Beximco: Compared to the other three businesses, Beximco is a riskier investment. The
company's stock price is more erratic, and its business strategy is riskier. Beximco should
only be considered for investment by those who are willing to assume significant risk.