INTRODUCTION

• To identify long-term investment opportunities in pharmaceuticals

company
• Figuring out a stock's true or fair market value
• Basic factors including GDP, inflation, FOREX reserves, interest rates,
• Metrics, such as the debt-to-equity ratio, dividend payout ratio,
earnings per share, price-to-earnings ratio, and net profit margin.
• Study annual reports of each corporation
• Studied stocks have falling ROE, ROA, and EPS ratios.
 OBJECTIVE OF THE STUDY

• To study the present scenario of drugs and pharmaceuticals industry in

India.
• To research how different economic factors affect the performance of the
sector.
• To research the financial standing of the medicinal businesses that were
selected.
• To provide information on the companies chosen as well as the industry
trends for drugs and pharmaceuticals.
• To predict the possible future growth of the pharmaceutical and drug
business, as well as the selected companies.
 PHARMACEUTICAL MARKET IN INDIA
• Pharmaceutical market in india is USD 42 billion in 2021
• To grow to USD 65 billion in 2024
• Estimate to reach USD 130 billion by 2030," the research states IBEF (india brand equity
foundation)

Source: - IBEF (India Brand Equity Foundation)

 Sun Pharmaceuticals Industries

• Headquarters India
• Sector Pharmaceuticals and Healthcare
• Parent/Subsidiary/Independent Parent
• Market Cap ($M, Mar 31, 2023) 28,738

• Is the fourth-largest specialty generic pharmaceutical firm in the world

• Psychiatry, anti-infectives, neurology, cardiology, diabetology,

gastroenterology, ophthalmology, nephrology, urology, dermatology,
gynecology, respiratory, cancer etc.
 Dr Reddy's Laboratories

• Headquarters India
• Sector Pharmaceuticals and Healthcare
• Parent/Subsidiary/Independent Parent
• Market Cap ($M, Mar 31, 2023) 9,355

• About 190 products are produced by the company,

• Along with 60 active pharmaceutical ingredients (APIS)
• Pharmaceuticals, diagnostic equipment, critical care medications, and biotechnology.
DATA ANALYSIS
Profitability ratios PBDIT Margin
Mar-19 Mar-20 Mar-21 Mar-22 Mar-23

Sun Pharma 27.98% 29.28% 27.84% 23.22% 25.22%

Dr Reddy's 30.01% 19.73% 21.84% 17.64% 22.75%

PBDIT Margin
35
30
25
20
15
10
5
0
Mar-19 Mar-20 Mar-21 Mar-22 Mar-23
Sun Pharma Dr Reddy's
 Net Profit Margin (%)

Mar-19 Mar-20 Mar-21 Mar-22 Mar-23

Sun Pharma 11.04% 12.75% 6.82% 8.81% 19.5%

Dr Reddy's 12.33% 11.24% 9.99% 9.8% 18.12%

Net Profit Margin

25

20

15

10

0
Mar-19 Mar-20 Mar-21 Mar-22 Mar-23
Sun Pharma Dr Reddy's
 Assets/Investment: Return on Equity
Mar-19 Mar-20 Mar-21 Mar-22 Mar-23
Sun Pharma 6.43% 15.13% 6.81% 6.24% 8.31%
Dr Reddy's 13.9% 19.35% 11.35% 11.06% 12.98%

Return on Equity
25

20

15

10

0
Mar-19 Mar-20 Mar-21 Mar-22 Mar-23
Sun Pharma Dr Reddy's
 Ratios of liquidity: Current Ratio
Mar-19 Mar-20 Mar-21 Mar-22 Mar-23
Sun Pharma 1.79 2.02 1.89 2.04 2
Dr Reddy's 1.88 1.75 1.8 1.82 2.38

Current Ratio
2.5

1.5

0.5

0
Mar-19 Mar-20 Mar-21 Mar-22 Mar-23
Sun Pharma Dr Reddy's
 Coverage ratios Interest Coverage Ratios
Mar-19 Mar-20 Mar-21 Mar-22 Mar-23
Sun Pharma 10.05 18.41 51.24 88.88 71.4
Dr Reddy's 26.78 19.61 42.9 44.39 51.85

Interest Coverage Ratios

100
90
80
70
60
50
40
30
20
10
0
Mar-19 Mar-20 Mar-21 Mar-22 Mar-23

Sun Pharma Dr Reddy's

 Solvency ratios total Debt/Equity
Mar-19 Mar-20 Mar-21 Mar-22 Mar-23
Sun Pharma 0.24 0.17 0.07 0.02 0.11
Dr Reddy's 0.24 0.11 0.15 0.16 0.05

Total Debt/Equity
0.3

0.25

0.2

0.15

0.1

0.05

0
Mar-19 Mar-20 Mar-21 Mar-22 Mar-23

Sun Pharma Dr Reddy's

 FINDINGS OF THE STUDY
• Growing and earning better returns in terms of gross profit, EBITDA
margin, net profit, return on assets, and return on equity.
• While the company's quick ratio fluctuated sometimes, it generally
maintained a consistent level of liquidity.
• Both company return on equity has fluctuated throughout the past five
years..
• The government is in favor of the mra, and the regulatory climate is
favourable.
• The pharmaceutical sector depends heavily on technology. High-quality,
reasonably priced medicines.
 CONCLUSION
• About the overall operating effectiveness and performance of
the company,
• Its strength comes from the fact that real information is
studied
• Based on the examination of the economy, industry, and
company. According to the aforementioned analysis.
• The current state of our economy indicates
• Investors can reduce risk and increase return with the help of
fundamental analysis.
Reference

www.slideshare.com
www.ibef.org
www.googlescholor.com
www.moneycontrol.com
www.investing.com
www.nseindia.com
www.wikipedia.com
www.sunpharma.com
www.drreddys.com
THANK
YOU