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  • Equity Research in Pharma Sector

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    Sarita Sharma
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    This document provides an equity research report on the pharmaceutical sector in India. It discusses key details about the sector such as its global ranking and characteristics. It also provides a SWOT analysis and examines import and export growth trends in the sector. Financial ratios and stock performances are presented for the top players Ranbaxy Laboratories, Cipla Ltd, and Dr. Reddy's Laboratories. Based on ratios like EPS, P/E, and P/B, the report recommends Cipla Ltd as a buy and Ranbaxy Laboratories as a hold, while recommending Dr. Reddy's Laboratories as a buy.

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    This document provides an equity research report on the pharmaceutical sector in India. It discusses key details about the sector such as its global ranking and characteristics. It also provides a SWOT analysis and examines import and export growth trends in the sector. Financial ratios and stock performances are presented for the top players Ranbaxy Laboratories, Cipla Ltd, and Dr. Reddy's Laboratories. Based on ratios like EPS, P/E, and P/B, the report recommends Cipla Ltd as a buy and Ranbaxy Laboratories as a hold, while recommending Dr. Reddy's Laboratories as a buy.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
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    Download as pptx, pdf, or txt
    97 views16 pages

    Equity Research in Pharma Sector

    Uploaded by

    Sarita Sharma
    This document provides an equity research report on the pharmaceutical sector in India. It discusses key details about the sector such as its global ranking and characteristics. It also provides a SWOT analysis and examines import and export growth trends in the sector. Financial ratios and stock performances are presented for the top players Ranbaxy Laboratories, Cipla Ltd, and Dr. Reddy's Laboratories. Based on ratios like EPS, P/E, and P/B, the report recommends Cipla Ltd as a buy and Ranbaxy Laboratories as a hold, while recommending Dr. Reddy's Laboratories as a buy.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pptx, pdf, or txt
    of 16

    Equity Research

    on
    Pharmaceutical Sector

    Submitted by
    Sarita Sharma
    MMS Finance- 57

    About The Sector


    Ranked 3rd in the world
    20,000 registered unit
    Supply
    Demand
    Barriers to Entry
    Bargaining power of suppliers
    Bargaining power of the customer
    Competition

    SWOT Analysis
    Strengths
    Strong Low cost
    manufacturing sector.
    Significant breadth and depth
    product expertise.
    Low cost of growing human
    resources in pharma sector.

    Weakness
    Inadequate R&D
    infrastructure
    Poor Industry Academia
    Linkage.
    Lack of time driven regulatory
    infrastructure

    Opportunity
    Global opportunity for
    increasing Generics and
    biogenerics market
    Low cost good skill
    destination
    High growth of domestic
    market

    Threat
    Increased competition for
    generics and biogenerics
    Highentry barriers

    Import
    50

    43.84

    45
    40
    35

    29.92

    30

    28.43

    25
    20
    14.79

    15

    9.82

    10
    5

    15.15

    6.19
    3.18

    0
    2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11
    Import Growth(%)

    Export
    40
    35.66
    35
    30
    25

    23.23
    20.89

    20
    15

    18.61

    13.25

    14.37
    12

    10

    6.62

    5
    0

    Export Growth (%)

    Top Players
    Ranbaxy Laboratories Ltd

    Cipla Ltd
    Dr Reddys Laboratories Ltd

    Ranbaxy Laboratories Ltd


    Ratios

    2011

    2010

    2009

    ROA

    13.61

    7.68

    19.19

    14.79

    ROCE
    ROE

    -158.61

    22.41

    14.44

    Debt Equity Ratio

    2.25

    0.83

    0.84

    Current ratio

    1.08

    1.84

    1.85

    Quick Ratio

    0.90

    1.50

    1.39

    EPS

    -72.32

    27.28

    13.61

    MPS

    405.25

    598.65

    517.45

    DPS

    Book Value

    45.60

    121.74

    94.16

    P/E Ratio

    21.94

    38.02

    P/B Ratio

    8.89

    27.28

    5.49

    OPM (%)

    16.66

    22.35

    13.62

    NPM(%)

    -39.11

    19.74

    11.72

    Cipla Ltd
    Ratios
    ROA
    ROCE
    ROE
    Debt Equity
    Ratio
    Current ratio
    Quick Ratio
    EPS
    MPS
    DPS
    Book Value
    P/E Ratio
    P/B Ratio
    OPM (%)
    NPM(%)

    2011

    2010

    2009

    14.81
    19.10
    14.9
    0

    14.76
    17.92
    14.54
    0.06

    19.29
    24.18
    18.31
    0

    3.17
    2.08
    14.00
    304.55
    2.00
    93.92
    21.75
    3.24
    22.89
    15.92

    2.26
    1.55
    11.96
    321.05
    2.80
    82.25
    26.84
    3.90
    20.27
    14.98

    2.17
    1.67
    13.47
    219.75
    2.00
    73.55
    16.31
    2.99
    24.63
    18.97

    Dr Reddys Laboratories Ltd


    Ratios
    ROA
    ROCE
    ROE
    Debt Equity
    Ratio
    Current ratio
    Quick Ratio
    EPS
    MPS
    DPS
    Book Value
    P/E Ratio
    P/B Ratio
    OPM (%)
    NPM(%)

    2011

    2010

    2009

    13.21

    13.71

    13.67

    19.22

    14.20

    15.87

    19.23

    16.29

    17.79

    0.22

    0.23

    0.09

    2.49
    1.07

    2.5
    1.00

    1.94
    1.43

    53.81
    1758.65
    13.75
    396.19
    32.68
    4.44
    27.84
    13.51

    52.78
    1638.55
    11.25
    355.69
    31.04
    4.61
    23.5
    16.84

    50.11
    1276.80
    11.25
    350.30
    25.48
    3.64
    24.76
    18.48

    Comparative Analysis
    Ratios

    ROA
    ROCE
    ROE
    Debt Equity Ratio
    Current ratio
    Quick Ratio
    EPS
    MPS
    DPS
    Book Value
    P/E Ratio
    Industry P/E
    P/B Ratio
    OPM (%)
    NPM(%)

    Ranbaxy
    Laboratories Ltd

    Cipla Ltd

    Dr Reddys
    Laboratories Ltd

    -158.61
    2.25

    14.81
    19.10
    14.9
    0

    13.21
    19.23
    19.23

    1.08
    0.90
    -72.32
    405.25
    45.60
    25.99
    8.89
    16.66
    -39.11

    3.17
    2.08
    14.00
    304.55
    2.00
    93.92
    21.75
    25.99
    3.24
    22.89
    15.92

    2.49
    1.07
    53.81
    1758.65
    13.75
    396.19
    32.68
    25.99
    4.44
    27.84
    13.51

    0.22

    Technical Analysis

    Ranbaxy Laboratories Ltd

    Cipla Ltd

    Dr. Reddys Laboratories Ltd

    Recommendations
    Ratios

    Ranbaxy
    Cipla Ltd
    Laboratories
    Ltd
    EPS
    -72.32
    14.00
    MPS
    405.25
    304.55
    P/E Ratio
    21.75
    Industry P/E
    25.99
    25.99
    P/B Ratio
    8.89
    3.24
    Recommenda
    Hold
    Buy
    tion

    Dr Reddys
    Laboratories
    Ltd
    53.81
    1758.65
    32.68
    25.99
    4.44

    Buy

    Thank you

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