IMPACT ON STOCKS OF TOP 5 PHARMA COMPANIES DURING

AND PRE PANDEMIC

 PRESENTED BY
• Bhavna Patnaik – 20IIMPPGDM03
• Shilpy Singh – 20IIMPPGDM05
• Muskan Vazirani – 20IIMPPGDM07
• Shailey Karade – 20IIMPPGDM08
• Pallavi Khatod – 20IIMPPGDM11
• Samiksha Desai – 20IIMPPGDM13
 CONTENT

 Introduction
 Objectives
 Research Methodology
 Data Interpretation
 Findings
 Conclusion
INTRODUCTION

Stock Market can be defined as a platform that facilitates Trading.

Two major Stock Exchanges in India:-
The Bombay Stock Exchange (BSE)
The National Stock Exchange (NSE)
And the regulator of these stock exchanges is SEBI.
There are several functions of stock exchange like economic barometer, pricing of securities etc.
COVID-19, THE PANDEMIC sudden outbreak and its impact on the top 5 pharmaceutical companies
namely- Sun Pharma , Cipla , Torrent , Dr Reddy’s , Cadila.
OBJECTIVES

• To understand the impact of pandemic during and pre pandemic on the stock focusing the top 5
Pharma companies.​
• To understand how the stock market functions and the performance of stock prices of the Pharma
sector.​
• To perform the fundamental analysis of the top 5 companies of the Pharma sector. 
 RESEARCH METHODOLOGY

• Data research
• Research design
• Sampling plan
• Sample and sample technique
 sample size
 sample frame
 sample design
• Period of study
DATA INTERPRETATION

Fundamental Analysis

Current Ratio –
The current ratio that measures the company ability to pay off its current liabilities with its current assets such
as cash accounts receivable and inventories. The higher the ratio the better the liquidity position.

Debt to Equity Ratio –

The debt / equity ratio is a measure of the relationship between the equal contributed by creditors and the
capital. the ratio is used to evaluate a company financial leverage.

Asset Turnover Ratio –

The Asset turnover ratio (TATR) measures the value of a company sales or revenues relative to the value of its
assets the asset turnover ratio can be used as an indicator of the efficiency with which a company is using its
assets to generate revenue.
 RATIO ANALYSIS

Sun Pharma Cipla

Asset Debt to Equity Asset Turnover

Debt to Equity Year Current Ratio
Year Current Ratio Turnover Ratio Ratio
Ratio
Ratio

2018-2019 0.84 0.26 27.31 2018-2019 4 0 67.18

2019-2020 1.07 0.24 32.62 2019-2020 3.45 0 62.03

2020-2021 1.45 0.26 32.82 2020-2021 3.79 0 60.53

 RATIO ANALYSIS

Dr Reddy’s Torrent Pharmaceuticals

Debt to Equity Asset Turnover Debt to Equity Asset Turnover

Year Current Ratio Year Current Ratio
Ratio Ratio Ratio Ratio

2018-2019 2.9 0.07 65.39 2018-2019 1.21 0.89 47.91

2019-2020 2.42 0.07 60.84 2019-2020 1.13 0.77 51.78

2020-2021 2.45 0.07 61.71 2020-2021 1.6 0.56 54.85

 RATIO ANALYSIS

Zydus Cadila Healthcare

Debt to Equity Asset Turnover

Year Current Ratio
Ratio Ratio

2018-2019 1.52 0.26 44.16

2019-2020 1.39 0.26 38.34

2020-2021 1.25 0.39 42.19

 SHAREHOLDING PATTERN

Sun Pharma Torrent Pharmaceuticals

 SHAREHOLDING PATTERN

Dr Reddy’s Cipla Cadila Healthcare

 PERFORMANCE OF STOCK PRICE OF 5 PHARMACEUTICAL COMPANIES

8000
  SUN TORRENT CIPLA DR.REDD CADILA
PHARM Y 7000
A 6000
  HI LO HIG LOW HI LOW HIG LO HIG LO 5000
G W H GH H W H W
4000
H
3000
PRE- 42 416. 171 1673. 509 495.7 275 268 256. 250.
COV 9. 13 9.7 8 .0 3 3.91 7.8 54 14 2000
ID 68 1000
POS 51 494. 251 2428. 713 691.0 734 434 401. 387. 0
T- 0. 06 5 07 .1 5 2.2 8.0 40 64
COV 94
ID
PRE-COVID POST-COVID
 IMPACT OF COVID-19 ON DIFFERENT PHARMACEUTICAL COMPANIES

180,000
Sun Cipla Torrent Dr Zydus 160,000
Pharma Pharma Reddy Cadila
140,000
(cr) (cr) (cr) (cr) (cr)
120,000
100,000
Market 161,991 76,343 47,381 87,283 65,192
Cap 80,000
60,000
Net 2,130.70 3,350.6 1,116.77 2,186.4 1,476.20 40,000
Profit 6 0 20,000
0
Net 12,803.2 13,900. 8005.00 13,329 7,790.40 Sun Pharma Cipla (cr) Torrent Pharma Dr Reddy Zydus Cadila
(cr) (cr) (cr) (cr)
Sales 1 58
Market Cap Net Profit Net Sales
 FINDINGS WERE RECORDED IN ACCORDANCE WITH
THE OBJECTIVE OF THE RESEARCH:

• All the Pharma companies individually have performed well in this Covid situation. In this research the
best performing company is Dr Reddy followed by Sun Pharma.
• Cipla and Dr Reddy have high current ratio, almost low debt to equity ratio and high asset turnover ratio.
This indicates that these both companies are performing well comparatively others.
• Sun Pharma and Torrent have performed average in terms of ratio analysis as compared with the other
companies.
• Sun Pharma is leading the Market Capitalization followed by Dr Reddy.
• The stock prices of Dr Reddy has performed well in pre and during pandemic whereas Cadila healthcare
has performed low.
 CONCLUSION

The current health crisis has been a blessing in disguise for pharma companies. People have become
more aware and concerned on personal healthcare and safety. Also the rising need in the medicines
and health equipments have been an opportunity for the pharma companies. The research on the
impact of stocks of top 5 pharma companies during and pre pandemic reveals that when there was no
Covid the companies like Sun Pharma, Torrent , Cadila, Dr reddy’s , and Cipla were performing
appropriately but soon as the news of Covid 19 strikes the world, stock market started showing
declined stock prices and soon the need for the health equipments rose the stocks of those companies
producing equipments. Making the pharma companies utilising the current crisis in an effective
manner. Also the entire research and analysis showed that Dr Reddy’s stands first in the table followed
by Sun Pharma.
THANK
YOU