Z Score Model analysis on Pharma industryRanga Nathan
This document provides an overview of the Indian pharmaceutical industry. It discusses the size and growth of the Indian economy and pharmaceutical industry. The pharmaceutical industry in India is the third largest by volume and is dominated by generic drugs, which account for 20% of global exports. The market size of the pharmaceutical industry in India is $20 billion and is expected to grow at a 20% CAGR over the next 5 years. The government has introduced several initiatives like allowing 100% FDI in pharmaceutical manufacturing and introduced new standards to enhance quality and help the industry's continued growth.
This document discusses growth opportunities for the Indian pharmaceutical industry through 2025. It identifies 6 value creation factors that can accelerate growth: 1) new products and business models through innovation, 2) new therapies for existing treatments, 3) affordability, 4) access to healthcare, 5) pricing strategies, and 6) marketing efficiencies. The current Indian pharmaceutical market is estimated at $7.5 billion based on retail sales, hospital sales, and generic sales. The industry can target growth by expanding in rural and urban markets, increasing treatment rates for conditions like diabetes, and introducing new products and therapies.
Pharmaceutical industry pestel analysisRahul Pagaria
The pharmaceutical industry in India is a rapidly growing sector that produces low-cost, high-quality drugs. It has a total market size of over $20 billion and has grown at around 12.5% annually over the past five years. Key players in the industry include Ranbaxy, Dr. Reddy's, Cipla, and Lupin. A PESTEL analysis identified political issues like price controls, social factors like an aging population and increased patient expectations, economic challenges from the global crisis, opportunities from new technologies, and an increasing focus on the environmental impact of the industry.
Introduction Indian Pharmaceutical market, SWOT analysis, PEST Analysis, Timeline analysis of Sun Pharma, Glaxo Smith Kline, Mankind, CIPLA and Zydus Cadila.
The document provides an analysis of the Indian pharmaceutical industry. Some key points:
- The industry has grown 14% annually since 2007 to over Rs. 1 lac crores in 2011-12.
- Porter's 5 Forces model is applied to analyze the industry. Barriers to entry are high for patented drugs but low-moderate for generic drugs. Threat of substitutes is low-moderate. Bargaining power of suppliers is low. Bargaining power of consumers is moderate. Intensity of rivalry is high due to fragmentation.
- The industry faces impacts from regulations like the Drug Price Control Order and the impending Goods and Services Tax. Trends include effects of patent law amendments and plans to increase public-private
The document provides an overview of the Indian pharmaceutical industry, including its history, growth, market structure, competition, exports and imports, and the effects of foreign investment. Some key points:
- The industry has grown significantly since its early years and now accounts for 8% of global pharmaceutical production.
- Major players include Ranbaxy, Dr. Reddy's Laboratories, Sun Pharmaceuticals, and AurobindoPharma.
- Exports have shown strong growth and now contribute around half of revenue for top companies. The US and Europe are major export markets.
- Foreign investment has impacted areas like new drug development, manufacturing standards, and marketing skills. Mauritius is a significant source of foreign
Z Score Model analysis on Pharma industryRanga Nathan
This document provides an overview of the Indian pharmaceutical industry. It discusses the size and growth of the Indian economy and pharmaceutical industry. The pharmaceutical industry in India is the third largest by volume and is dominated by generic drugs, which account for 20% of global exports. The market size of the pharmaceutical industry in India is $20 billion and is expected to grow at a 20% CAGR over the next 5 years. The government has introduced several initiatives like allowing 100% FDI in pharmaceutical manufacturing and introduced new standards to enhance quality and help the industry's continued growth.
This document discusses growth opportunities for the Indian pharmaceutical industry through 2025. It identifies 6 value creation factors that can accelerate growth: 1) new products and business models through innovation, 2) new therapies for existing treatments, 3) affordability, 4) access to healthcare, 5) pricing strategies, and 6) marketing efficiencies. The current Indian pharmaceutical market is estimated at $7.5 billion based on retail sales, hospital sales, and generic sales. The industry can target growth by expanding in rural and urban markets, increasing treatment rates for conditions like diabetes, and introducing new products and therapies.
Pharmaceutical industry pestel analysisRahul Pagaria
The pharmaceutical industry in India is a rapidly growing sector that produces low-cost, high-quality drugs. It has a total market size of over $20 billion and has grown at around 12.5% annually over the past five years. Key players in the industry include Ranbaxy, Dr. Reddy's, Cipla, and Lupin. A PESTEL analysis identified political issues like price controls, social factors like an aging population and increased patient expectations, economic challenges from the global crisis, opportunities from new technologies, and an increasing focus on the environmental impact of the industry.
Introduction Indian Pharmaceutical market, SWOT analysis, PEST Analysis, Timeline analysis of Sun Pharma, Glaxo Smith Kline, Mankind, CIPLA and Zydus Cadila.
The document provides an analysis of the Indian pharmaceutical industry. Some key points:
- The industry has grown 14% annually since 2007 to over Rs. 1 lac crores in 2011-12.
- Porter's 5 Forces model is applied to analyze the industry. Barriers to entry are high for patented drugs but low-moderate for generic drugs. Threat of substitutes is low-moderate. Bargaining power of suppliers is low. Bargaining power of consumers is moderate. Intensity of rivalry is high due to fragmentation.
- The industry faces impacts from regulations like the Drug Price Control Order and the impending Goods and Services Tax. Trends include effects of patent law amendments and plans to increase public-private
The document provides an overview of the Indian pharmaceutical industry, including its history, growth, market structure, competition, exports and imports, and the effects of foreign investment. Some key points:
- The industry has grown significantly since its early years and now accounts for 8% of global pharmaceutical production.
- Major players include Ranbaxy, Dr. Reddy's Laboratories, Sun Pharmaceuticals, and AurobindoPharma.
- Exports have shown strong growth and now contribute around half of revenue for top companies. The US and Europe are major export markets.
- Foreign investment has impacted areas like new drug development, manufacturing standards, and marketing skills. Mauritius is a significant source of foreign
Indian pharmaceutical industry supplies over 50% of global demand for various vaccines and drugs. It is expected to grow at 22.4% annually to reach $55 billion by 2025. India accounts for 20% of global exports in generics. The domestic market is expected to reach $27.9 billion by 2020 with high potential for growth in generics. Increased investment in R&D and acquisitions are driving growth in the robust Indian pharmaceutical sector.
Competitive Analysis in Pharmaceutical IndustryYee Jie NG
Eli Lilly is a global pharmaceutical company founded in 1876. The document analyzes Eli Lilly's competitive position using Porter's Five Forces and SWOT analysis. It identifies key trends in the pharmaceutical industry including mergers and acquisitions, aging populations, expiring patents, and increased regulations. These trends present both opportunities and threats for Eli Lilly. The analysis suggests Eli Lilly should pursue strategies like partnerships, emerging markets, and ongoing R&D to adapt to changes in the competitive landscape over the next 10 years.
Strategic Analysis of the Indian Pharmaceutical Contract Manufacturing Market...Aiswariya Chidambaram
The Indian Pharmaceutical CMO market has been analyzed and assessed with respect to APIs and finished dose formulations (solids, liquids and injectables). Strategic recommendations for the success of market participants have been provided.
Pharmaceutical Industry Financial Analysisjpotts89
This is a presentation that was completed for my Corporate Finance class my senior year with a team of three other students. I did my valuation of Eli Lilly.
Project on Production and Packaging in Pharmaceutical Industry Emcure By Nikh...Nikhil Dhawan
The pharmaceutical industry in India is the third largest in volume worldwide. It has grown at a compound annual growth rate of 13-17% between 2012-2016 and is projected to reach $55 billion by 2020. The industry has grown due to low production costs and a 1970 patent law that enabled generic drug production. While Indian companies pioneered generics, they now face challenges developing new drugs due to a lack of R&D investment and qualified researchers. The biotechnology industry in India has also grown significantly but remains smaller than the pharmaceutical industry, focusing on vaccines and contract manufacturing. The government supports the industries through funding and incentives.
May 2015 Edition of BEACON, A Monthly Newsletter by SIMCON.
Inside this issue:
About Us
Our Team
INDUSTRY ANALYSIS : Pharmaceutical Industry
COMPANY ANALYSIS : Sun Pharma
BRAND ANALYSIS : Kellogg's
Concept of the month
The document discusses how various factors in the PESTEL analysis impact the pharmaceutical industry in India. It outlines how the political, economic, sociological, technological, ecological, and legal environments can positively or negatively influence the industry. A stable government, growing economy, educated society, advancing technology, balanced environment, and supportive laws create opportunities for pharmaceutical companies to develop and thrive.
This document is a project report submitted by Rajesh Narayanan to SRM University for the partial fulfillment of an MBA degree. The report analyzes the pharmaceutical sector in India through fundamental analysis. It includes an introduction to fundamental analysis and the pharmaceutical industry/company profiles. The objective is to analyze major pharmaceutical companies through economic, industry and company analysis as well as financial ratio analysis.
Implications for indian_pharmaceuticalsAkshay Bawa
Global pharmaceutical companies are facing a major "patent cliff" between 2010-2015 as drugs worth $100 billion lose patent protection. This provides opportunities for Indian generic drug firms to gain market share. Indian companies have evolved into globally competitive generic producers through regulatory changes and low-cost manufacturing advantages. However, to succeed long-term, firms will need to focus on niche areas, new drug delivery systems, and backward integration in production. Other Indian industries like contract research and manufacturing are also well positioned to benefit from the patent cliff through outsourcing from major pharmaceutical companies.
The document provides an analysis of the Indian pharmaceutical sector, including background information, current trends, and performance of major players. It discusses key growth drivers for the industry like rising incomes and improved healthcare infrastructure. Major players are achieving steady profits, though pricing pressures have kept margins mostly flat recently. Companies with higher earnings efficiencies like Sun Pharma and Divis Lab command higher valuation multiples, while Elder Pharma has the lowest multiples due to lower profitability. The analysis also examines relationships between valuation metrics like EV/Sales and EBITDA margins for different firms.
The document discusses the Indian pharmaceutical industry. It notes that India accounts for about 1.4% of the global pharma industry by value but 10% by volume. The industry is growing rapidly and is expected to reach $36 billion by 2016, expanding at a CAGR of 17.8%. India has a large and growing generics market, low-cost production, and government policy support promoting the pharmaceutical sector. The industry has significant export potential and is a major supplier of generic drugs globally.
Brief Report on the Indian Pharmaceutical Industry - 2011david_singer
The document summarizes the pharmaceutical industry in India. It provides an overview of the industry, noting that it is highly fragmented with over 20,000 registered units and is a $4.5 billion industry growing annually by 8-9%. It also profiles some of the largest pharmaceutical companies in India, including Ranbaxy, Dr. Reddy's Laboratories, and Cipla, and discusses their operations, market shares, and R&D investments. The industry is a major exporter of generic drugs and has a competitive advantage due to its skilled workforce and cost-effective production capabilities.
The document provides information on trends in the Indian pharmaceutical sector. It notes that Indian pharmaceutical companies are increasing spending on research and development to develop new drugs. Exports of pharmaceutical products from India have grown significantly in recent years and are expected to exceed USD15 billion in 2015, as Indian companies have a strong presence in the generics market. The top four pharmaceutical firms in India by revenue - Dr. Reddy's, Lupin, Cipla and Aurobindo - account for over 20% of the domestic market share. Anti-infective drugs represent the largest segment of the Indian pharmaceutical market. Exports and domestic sales have increased the size of the Indian pharmaceutical market to USD36.7 billion in 2016.
The document provides an overview of Bangladesh's growing pharmaceutical sector and its export potential. It discusses that Bangladesh's pharmaceutical exports have increased significantly in recent years from $8.2 million in 2004 to $43.63 million in 2013. Bangladeshi pharmaceutical companies now meet 97% of domestic demand and are expanding exports to over 72 countries in Asia, Africa, Europe and Latin America. While the sector has potential for further growth, it still faces barriers such as a lack of facilities for bioequivalency tests that adds costs.
The document provides an overview of the pharmaceutical industry in India and analyzes two pharmaceutical companies - Eris Lifesciences and Granules. It discusses that the Indian pharmaceutical industry has low production costs and supplies over 50% of global generic drug demand. A SWOT analysis identifies strengths like low costs and chemistry skills, and weaknesses like price regulation. Eris Lifesciences and Granules were selected for analysis as they focus on producing drugs domestically rather than importing raw materials. Eris Lifesciences in particular has leading market shares, high margins, and growing profits.
A Financial Review: Pharmaceuticals IndustryRoby Camagong
This Financial Review discusses the in-depth analysis of the operating and financial performance of the three companies in the Pharmaceutical Industry, namely- GlaxoSmithKline, Merck & Co, and Novartis. It compares the results of the companies from the past 5 FYE in relation to the financial ratios, industry economic indicators, company trends, business strengths and weaknesses, and management strategies.
The document provides an overview of the pharmaceutical industry in India and analyzes two pharmaceutical companies - Eris Lifesciences and Granules. It discusses that the Indian pharmaceutical industry has low production costs and supplies over 50% of global generic drug demand. A SWOT analysis identifies strengths like low costs and chemistry skills, and weaknesses like price regulation. Eris Lifesciences and Granules were selected for analysis as they focus on producing drugs domestically rather than importing raw materials. Eris Lifesciences in particular has leading market shares, high margins, and growing profits.
The global sales of medicines reached $942 billion in 2011, a 5.1% increase from the previous year. This total is expected to reach $1.5 trillion by 2020 due to population growth and an aging population. However, the pharmaceutical industry faces issues such as losing $148 billion annually from 2012-2018 due to drugs going off patent and rising research and development costs of $800 million to $4 billion to bring a new drug to market. The Indian pharmaceutical industry has grown substantially over the past few decades but faces threats from increasing regulation and low-cost competition from other countries.
Global Generic Pharmaceutical Market - Qualitative and Quantitative AnalysisAiswariya Chidambaram
This report was presented at the Pharma Tech 2013 Conference - India A Game Changer in the Pharma Industry at Ahmedabad, India in December 2013. The presentation highlights the overview of the global generic pharmaceuticals market, with particular focus on the key market trends and challenges by therapeutic areas and geographies including the U.S, EU and India. List of key blockbuster drugs scheduled to lose patent protection between 2010 and 2020 have been included. Additionally impact of regulation on generic drugs by region and strategic recommendations for the success of market participants are also covered in this report.
This document provides an analysis on UltraTech Cement. It rates the stock as a "Buy" with a target price range of Rs. 3400-3550 over the next 12 months, representing potential upside of 14%. UltraTech is India's largest cement company and is expected to benefit from recovering economic growth and increasing cement demand in India. The company plans to aggressively expand its capacity which will help drive strong volume growth.
- Canara Bank reported a 15.6% decline in net profit for the second quarter due to higher provisions and weak asset quality. Net profit fell to Rs. 5.28 billion from Rs. 6.26 billion a year ago.
- Net interest income rose but provisions jumped 49% while other income dropped 18.5%. Gross bad loans rose to 4.27% from 3.98% in the previous quarter.
- Petronet LNG shares rose after RBI allowed increased foreign ownership in the company to 30% under a portfolio investment scheme.
Indian pharmaceutical industry supplies over 50% of global demand for various vaccines and drugs. It is expected to grow at 22.4% annually to reach $55 billion by 2025. India accounts for 20% of global exports in generics. The domestic market is expected to reach $27.9 billion by 2020 with high potential for growth in generics. Increased investment in R&D and acquisitions are driving growth in the robust Indian pharmaceutical sector.
Competitive Analysis in Pharmaceutical IndustryYee Jie NG
Eli Lilly is a global pharmaceutical company founded in 1876. The document analyzes Eli Lilly's competitive position using Porter's Five Forces and SWOT analysis. It identifies key trends in the pharmaceutical industry including mergers and acquisitions, aging populations, expiring patents, and increased regulations. These trends present both opportunities and threats for Eli Lilly. The analysis suggests Eli Lilly should pursue strategies like partnerships, emerging markets, and ongoing R&D to adapt to changes in the competitive landscape over the next 10 years.
Strategic Analysis of the Indian Pharmaceutical Contract Manufacturing Market...Aiswariya Chidambaram
The Indian Pharmaceutical CMO market has been analyzed and assessed with respect to APIs and finished dose formulations (solids, liquids and injectables). Strategic recommendations for the success of market participants have been provided.
Pharmaceutical Industry Financial Analysisjpotts89
This is a presentation that was completed for my Corporate Finance class my senior year with a team of three other students. I did my valuation of Eli Lilly.
Project on Production and Packaging in Pharmaceutical Industry Emcure By Nikh...Nikhil Dhawan
The pharmaceutical industry in India is the third largest in volume worldwide. It has grown at a compound annual growth rate of 13-17% between 2012-2016 and is projected to reach $55 billion by 2020. The industry has grown due to low production costs and a 1970 patent law that enabled generic drug production. While Indian companies pioneered generics, they now face challenges developing new drugs due to a lack of R&D investment and qualified researchers. The biotechnology industry in India has also grown significantly but remains smaller than the pharmaceutical industry, focusing on vaccines and contract manufacturing. The government supports the industries through funding and incentives.
May 2015 Edition of BEACON, A Monthly Newsletter by SIMCON.
Inside this issue:
About Us
Our Team
INDUSTRY ANALYSIS : Pharmaceutical Industry
COMPANY ANALYSIS : Sun Pharma
BRAND ANALYSIS : Kellogg's
Concept of the month
The document discusses how various factors in the PESTEL analysis impact the pharmaceutical industry in India. It outlines how the political, economic, sociological, technological, ecological, and legal environments can positively or negatively influence the industry. A stable government, growing economy, educated society, advancing technology, balanced environment, and supportive laws create opportunities for pharmaceutical companies to develop and thrive.
This document is a project report submitted by Rajesh Narayanan to SRM University for the partial fulfillment of an MBA degree. The report analyzes the pharmaceutical sector in India through fundamental analysis. It includes an introduction to fundamental analysis and the pharmaceutical industry/company profiles. The objective is to analyze major pharmaceutical companies through economic, industry and company analysis as well as financial ratio analysis.
Implications for indian_pharmaceuticalsAkshay Bawa
Global pharmaceutical companies are facing a major "patent cliff" between 2010-2015 as drugs worth $100 billion lose patent protection. This provides opportunities for Indian generic drug firms to gain market share. Indian companies have evolved into globally competitive generic producers through regulatory changes and low-cost manufacturing advantages. However, to succeed long-term, firms will need to focus on niche areas, new drug delivery systems, and backward integration in production. Other Indian industries like contract research and manufacturing are also well positioned to benefit from the patent cliff through outsourcing from major pharmaceutical companies.
The document provides an analysis of the Indian pharmaceutical sector, including background information, current trends, and performance of major players. It discusses key growth drivers for the industry like rising incomes and improved healthcare infrastructure. Major players are achieving steady profits, though pricing pressures have kept margins mostly flat recently. Companies with higher earnings efficiencies like Sun Pharma and Divis Lab command higher valuation multiples, while Elder Pharma has the lowest multiples due to lower profitability. The analysis also examines relationships between valuation metrics like EV/Sales and EBITDA margins for different firms.
The document discusses the Indian pharmaceutical industry. It notes that India accounts for about 1.4% of the global pharma industry by value but 10% by volume. The industry is growing rapidly and is expected to reach $36 billion by 2016, expanding at a CAGR of 17.8%. India has a large and growing generics market, low-cost production, and government policy support promoting the pharmaceutical sector. The industry has significant export potential and is a major supplier of generic drugs globally.
Brief Report on the Indian Pharmaceutical Industry - 2011david_singer
The document summarizes the pharmaceutical industry in India. It provides an overview of the industry, noting that it is highly fragmented with over 20,000 registered units and is a $4.5 billion industry growing annually by 8-9%. It also profiles some of the largest pharmaceutical companies in India, including Ranbaxy, Dr. Reddy's Laboratories, and Cipla, and discusses their operations, market shares, and R&D investments. The industry is a major exporter of generic drugs and has a competitive advantage due to its skilled workforce and cost-effective production capabilities.
The document provides information on trends in the Indian pharmaceutical sector. It notes that Indian pharmaceutical companies are increasing spending on research and development to develop new drugs. Exports of pharmaceutical products from India have grown significantly in recent years and are expected to exceed USD15 billion in 2015, as Indian companies have a strong presence in the generics market. The top four pharmaceutical firms in India by revenue - Dr. Reddy's, Lupin, Cipla and Aurobindo - account for over 20% of the domestic market share. Anti-infective drugs represent the largest segment of the Indian pharmaceutical market. Exports and domestic sales have increased the size of the Indian pharmaceutical market to USD36.7 billion in 2016.
The document provides an overview of Bangladesh's growing pharmaceutical sector and its export potential. It discusses that Bangladesh's pharmaceutical exports have increased significantly in recent years from $8.2 million in 2004 to $43.63 million in 2013. Bangladeshi pharmaceutical companies now meet 97% of domestic demand and are expanding exports to over 72 countries in Asia, Africa, Europe and Latin America. While the sector has potential for further growth, it still faces barriers such as a lack of facilities for bioequivalency tests that adds costs.
The document provides an overview of the pharmaceutical industry in India and analyzes two pharmaceutical companies - Eris Lifesciences and Granules. It discusses that the Indian pharmaceutical industry has low production costs and supplies over 50% of global generic drug demand. A SWOT analysis identifies strengths like low costs and chemistry skills, and weaknesses like price regulation. Eris Lifesciences and Granules were selected for analysis as they focus on producing drugs domestically rather than importing raw materials. Eris Lifesciences in particular has leading market shares, high margins, and growing profits.
A Financial Review: Pharmaceuticals IndustryRoby Camagong
This Financial Review discusses the in-depth analysis of the operating and financial performance of the three companies in the Pharmaceutical Industry, namely- GlaxoSmithKline, Merck & Co, and Novartis. It compares the results of the companies from the past 5 FYE in relation to the financial ratios, industry economic indicators, company trends, business strengths and weaknesses, and management strategies.
The document provides an overview of the pharmaceutical industry in India and analyzes two pharmaceutical companies - Eris Lifesciences and Granules. It discusses that the Indian pharmaceutical industry has low production costs and supplies over 50% of global generic drug demand. A SWOT analysis identifies strengths like low costs and chemistry skills, and weaknesses like price regulation. Eris Lifesciences and Granules were selected for analysis as they focus on producing drugs domestically rather than importing raw materials. Eris Lifesciences in particular has leading market shares, high margins, and growing profits.
The global sales of medicines reached $942 billion in 2011, a 5.1% increase from the previous year. This total is expected to reach $1.5 trillion by 2020 due to population growth and an aging population. However, the pharmaceutical industry faces issues such as losing $148 billion annually from 2012-2018 due to drugs going off patent and rising research and development costs of $800 million to $4 billion to bring a new drug to market. The Indian pharmaceutical industry has grown substantially over the past few decades but faces threats from increasing regulation and low-cost competition from other countries.
Global Generic Pharmaceutical Market - Qualitative and Quantitative AnalysisAiswariya Chidambaram
This report was presented at the Pharma Tech 2013 Conference - India A Game Changer in the Pharma Industry at Ahmedabad, India in December 2013. The presentation highlights the overview of the global generic pharmaceuticals market, with particular focus on the key market trends and challenges by therapeutic areas and geographies including the U.S, EU and India. List of key blockbuster drugs scheduled to lose patent protection between 2010 and 2020 have been included. Additionally impact of regulation on generic drugs by region and strategic recommendations for the success of market participants are also covered in this report.
This document provides an analysis on UltraTech Cement. It rates the stock as a "Buy" with a target price range of Rs. 3400-3550 over the next 12 months, representing potential upside of 14%. UltraTech is India's largest cement company and is expected to benefit from recovering economic growth and increasing cement demand in India. The company plans to aggressively expand its capacity which will help drive strong volume growth.
- Canara Bank reported a 15.6% decline in net profit for the second quarter due to higher provisions and weak asset quality. Net profit fell to Rs. 5.28 billion from Rs. 6.26 billion a year ago.
- Net interest income rose but provisions jumped 49% while other income dropped 18.5%. Gross bad loans rose to 4.27% from 3.98% in the previous quarter.
- Petronet LNG shares rose after RBI allowed increased foreign ownership in the company to 30% under a portfolio investment scheme.
Idea Cellular Ltd. Q2 FY16 Result First Cut choice broking
Idea Cellular reported quarterly results that were largely in line with estimates. Consolidated net sales were 1.7% higher than expected at Rs. 86,765.8 million, driven by higher value-added services revenue. Consolidated EBITDA of Rs. 30,526.3 million and reported PAT of Rs. 7,873.3 million also met estimates. However, key operating metrics like voice revenue, minutes of usage, and data ARPU declined sequentially, leading to a 5.3% quarter-on-quarter drop in EBITDA and 13.1% fall in reported PAT. The brokerage maintains a "Buy" rating on Idea Cellular.
The document provides a technical analysis of various commodities including gold, silver, copper, crude oil, and natural gas. For gold, the analysis indicates prices are expected to move lower towards 28500 levels. For silver, prices are expected to move higher towards 39250 levels. For copper, prices are expected to move higher towards 322.50 levels. For crude oil, prices are expected to move higher towards 3430 levels.
The Reserve Bank of India kept key policy rates unchanged at 7.75% in line with market expectations. While inflation has eased, the RBI is awaiting more information on the fiscal outlook and evidence that disinflation is sustainable. The RBI reduced the statutory liquidity ratio for banks to improve liquidity and provide more credit availability. India's GDP grew by 6.9% in FY14 according to revised estimates, and is projected to grow 7.4% in FY15. Industrial production growth slowed to 1.7% in December 2014, indicating weaker demand despite recent GDP growth figures.
The Indian rupee dropped for the second day in a row against the US dollar, ending at 67.26. Sentiment in the domestic market was negative, keeping pressure on the currency. China's manufacturing PMI was unchanged at 50.1 in May. The US dollar index gained 0.4% due to increased risk aversion boosting demand for the low-yielding currency, though economic data from the US was mixed. Eurozone CPI fell 0.1% in May while unemployment remained at 10.2%.
This document provides an analysis on Mahindra & Mahindra (M&M) from a research analyst. It recommends buying M&M shares. Key points include:
- The Indian economy and automobile industry are improving after slowdowns, which will benefit M&M.
- M&M plans new vehicle launches and expects to regain some lost market share in utility vehicles.
- Tractor demand is expected to revive in the coming fiscal years due to various factors.
- A valuation analysis indicates M&M shares are undervalued and have 18% upside potential over the next 10-12 months.
The document provides stock recommendations and analysis for three Indian companies - Dr. Reddy's Laboratories Ltd., Ambuja Cements Ltd., and ICICI Bank Ltd. It summarizes recent price movements and trading patterns, and identifies support levels based on technical indicators. Positive factors like breakouts, moving average crossovers, and diverging momentum signals suggest further upside potential. The analyst recommends buying the stocks with provided target prices and stop losses.
- Aurobindo Pharma Ltd reported a 39.4% rise in Q4 net profit to Rs. 563 crore and an 18.5% increase in Q4 revenue to Rs. 3,747 crore. For the full year, net profit rose 28.5% and revenue grew 14.6%.
- Technical outlook indicates Aurobindo Pharma stock could rise further after bouncing back from support and sustaining above its 100 day moving average. The analyst recommends buying at Rs. 780-784 with a target price of Rs. 800.
- BASF India inaugurated a new construction chemicals plant in West Bengal and is expected to produce products under its Master Builders Solutions brand
Aurobindo Pharma received approval from the US FDA to manufacture and market Tramadol Hydrochloride Extended-release Tablets, which are used to treat moderate-to-severe pain. The approved product has an estimated $56 million market size. Aurobindo now has a total of 217 ANDA approvals from the US FDA. Technically, the stock has broken out of a pennant pattern and is trading above moving averages, suggesting an upward trend. Analyst recommends buying the stock in the range of 824-828 with a target price of 845. RBI has allowed FIIs/RFPIs to invest up to 74% of Shriram Transport Finance's capital. Analyst
Sun Pharmaceutical Industries is seeking shareholder approval to raise up to Rs 12,000 crore through convertible debentures or a QIP placement to fund expansion and acquisitions. Following its merger with Ranbaxy, the company has been restructuring its business. KEC International has secured new orders worth Rs 668 crore for transmission, distribution, cables and renewable projects in India and other countries. Asian stocks traded mostly higher following gains on Wall Street, with Chinese markets leading after reopening from a weeklong holiday.
Choicebroking Currency Report: Indian Rupee rose marginally by 2 paise in Tuesday’s trading session. US IBD/ TIPP Economic Optimism rose by 2.4 points to 48.7-mark in May.
This document summarizes the commodity call trades made in January 2016. It lists the date of each trade, commodity traded, transaction details like quantity, price targets, stop losses, and profit/loss. A total profit of Rs. 104050 was achieved over the month from trades in various commodities like lead, aluminum, zinc, nickel, crude oil, natural gas, copper, gold and silver. The highest profits came from trades in lead, silver, gold and natural gas. Some trades resulted in losses or were stopped out due to targets/stop losses being hit.
Aarti Drugs Limited (ADL), incorporated in 1984 is part of Rs 3,000 crore Aarti Group of
Industries and is engaged in manufacturing and sale of Active pharmaceutical ingredients
(APIs), advanced intermediates and specialty chemicals. ADL manufactures drugs in
therapeutic segments such as anti-arthritis, anti-fungal, antibiotics, anti-diabetic, sedatives,
anti-depressant, anti-diarrhea and anti-inflammatory.
In Aarti Drugs we get a bulk drugs manufacturer with steady growth across the years,
continuously improving performance on various financial parameters, good dividend
yield of more than 5% and low valuations of 5 times earnings and EV/EBIT of 5.28.
Besides, what instills further confidence in the stock is the fact that promoters of the
company have been continuously increasing their stake with regular purchases from open
market. Two years back promoters had 54.83% stake in the company and the same now
stands increased to 59.65%.
The Indian pharmaceutical industry has grown tremendously over the past few decades from being almost non-existent to meeting nearly 95% of the country's pharmaceutical needs. It is now self-reliant in terms of production capabilities across a wide range of medicines. The industry is highly fragmented with over 20,000 registered units and is characterized by intense price competition and government price controls. Exports have also increased significantly and are expected to surpass domestic sales in the coming years, driven primarily by growth in formulation exports. India also has the most FDA-approved manufacturing facilities outside of the US, positioning it as an important supplier for the global pharmaceutical market.
Aarti Drugs (ADL) is a part of well known Aarti group of industries. The Company is engaged in the manufacturing of Active Pharmaceutical Ingredients (APIs), Pharma Intermediates, Specialty Chemicals and also manufactures formulations through its wholly-owned subsidiary- Pinnacle Life Science Private Limited.
The company has a long standing track record in the bulk drugs industry and has been supplying products to demanding domestic and international customers.
The pharmaceutical industry is the world's largest industry worth $2.8 trillion globally. The Indian pharmaceutical industry is the third largest by volume and exports 20% of generic drugs worldwide. It has grown significantly over the past two decades and is expected to become the sixth largest pharmaceutical market globally, worth $55 billion by 2020. The industry faces challenges of being highly fragmented, low profit margins due to government price controls, and low research and development investments due to pricing norms. The government is taking initiatives to support the industry through funding and reforms.
Performance analysis of working capital management of “pharmaceuticals industry”Fayshal Hossan Miazy
The document appears to be a term paper submitted by a group of students to their course teacher Khairul Alom at Southeast University. It discusses performance analysis of working capital management of five pharmaceutical companies in Bangladesh - Square Pharmaceuticals Ltd., Ibn Sina Pharmaceuticals Ltd., Ambee Pharmaceuticals Ltd., Beximco Pharmaceuticals Ltd., and Renata Pharmaceuticals Ltd. The paper includes an introduction to the pharmaceutical sector in Bangladesh, historical background of the five companies, methodology used involving data collection and analysis, and a theoretical literature review. Ratio analysis and time series analysis is performed for the five companies and a comparative analysis is presented.
The pharmaceutical industry in India is the third largest in the world by volume. It has grown significantly since the 1960s and now holds a market share of $14 billion in the US. Exports of pharmaceutical products from India have grown at a compound annual rate of 21.25% between 2006-07 and 2008-09. Ranbaxy Laboratories is a major Indian pharmaceutical company with global sales of over $1 billion in 2006. It has manufacturing facilities in several countries and markets drugs in over 125 countries. The Indian pharmaceutical industry is poised for continued growth and increasing global market share in the coming years.
PROBLEMS AND PROSPECTS PHARMA PRODUCT SELLING..Subrata Ghosh
The document summarizes the pharmaceutical industry in India. It notes that India has over 24,000 licensed pharmaceutical companies and is among the top 35 drug producers worldwide. The industry has grown significantly in recent decades from repackaging drugs to manufacturing many bulk drugs and generics. It is estimated the market will reach $40.18 billion by 2014 and $70.60 billion by 2019. While the industry faces some challenges like drug price controls, it is poised for continued growth due to factors like rising incomes, expansion in rural areas, and improvements in healthcare infrastructure.
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1. FUNDAMENTAL RESEARCHSEBI CERTIFIED – RESEARCH ANALYST
Alkem Laboratories Ltd.
Alkem Laboratories Ltd., the fifth largest pharmaceutical company in
Indian market with global operations, is engaged in the development,
manufacture, and sale of pharmaceutical and neutraceutical products.
Alkem has a total of 16 manufacturing facilities out of which 14
manufacturing facilities at 5 locations locate in India and 2 in the United
States (US). Alkem’s domestic and international operations accounted for
74.7% and 25.3% of total revenue by fiscal year 2015.
Alkem Laboratories Ltd. is coming out with an initial public offering
(IPO) of 12.9 mn equity shares of face value Rs2 each from the
promoter and selling shareholders. The issue is priced at Rs1,020-1,050
per share.
Objects of the Issue
Company will not receive any funds from the offer for sale.
OFS will be used for: To achieve the benefits of listing the Equity
Shares on the Stock Exchanges and for the sale of Equity Shares by the
selling shareholders.
Valuation & Recommendation
Alkem Laboratories Ltd. has a market leadership in various therapeutic
areas and ability to build market leading brands in the domestic market.
It has extensive sales, marketing and distribution network in India and
strong research and development capabilities which enhance the
company product portfolio. During FY11-FY15, EBITDA margin of the
company remained in the range of 13-18%, PAT margins at 12-17% and
currently it is growing at CAGR of over 20%. After annualizing the net
profit, FY16 EPS stands at Rs72.1 (post issue). At higher price band of
Rs1,050, Alkem’s shares are available at P/E multiple of 14.6x its
FY16EPS, which is 30% discount to the average PE multiple of around
(P/E 21x) of industry peers. Thus, we recommend investors to
‘Subscribe’ the issue.
1
Dec 05, 2015
Allocation (% of Issue Size)
QIBs 50%
Non-Institutional 15%
Retail 35%
IPO Update
Shareholding pattern
Particulars
Pre-issue
(%)
Post -Issue
(%)
Promoters & Promoters
Group
70.9% 66.2%
Non-Promoters 29.1% 33.8%
Total 100% 100%
Recommendation SUBSCRIBE
Price Band (per share) Rs1,020-Rs1,050
Issue Size Rs13,110.5 -Rs13,496.1 mn
Offer for sale 12.9 mn shares
Bidding Date Dec 08' 2015 - Dec 10' 2015
Face Value Rs2
Market Lot Size 14 shares per lot
Book Running Lead
Manager
Edelweiss Financial Services
Ltd., Axis Capital Ltd., J.P.
Morgan India Pvt. Ltd,
Nomura Fin. Adv. Pvt. Ltd.
Registrar Link Intime India Pvt. Ltd.
Sector Pharmaceuticals
Key Financials (Consolidated)
Particulars (Rs mn) FY11 FY12 FY13 FY14 FY15 H1FY16
Operating Income 16,907 20,156.4 24,952.3 31,260.0 37,887.1 25,701.3
Other Income 1,134.2 1,452.8 1,671.7 1,652.7 1,810.3 888.1
Op. Expenes. 14,042 16,404.3 21,327.8 27,159.5 33,015.9 21,097.2
EBIDTA 2,865.8 3,752.1 3,624.5 4,100.5 4,871.2 4,604.1
EBIDTA Margin 7.6% 18.6% 14.5% 13.1% 12.9% 17.9%
Adjusted PAT 2,957.7 4,058.4 3,836.3 4,353.4 4,625.6 4,312.9
NPM 17.5% 20.2% 15.4% 13.9% 12.2% 16.8%
EPS (Rs) 24.7 34.0 32.1 36.4 38.7 36.1
ROE (%) 20.7% 22.4% 17.7% 16.9% 15.4% 14.4%
Satish Kumar
Research Analyst (022-67069913)
satish.kumar@choiceindia.com
2. FUNDAMENTAL RESEARCHSEBI CERTIFIED – RESEARCH ANALYST
IPO Update
Indian Pharmaceuticals Industry
Indian pharmaceuticals industry with an estimated size of $36.8 billion is one of the largest industries in India and comprises
companies that are involved in the development, production and marketing of pharmaceutical products. The sector accounts
for about 1.4% of the global pharmaceutical industry in value terms and 10% in volume terms. The country's pharmaceutical
industry is expected to expand at a compounded annual growth rate (CAGR) of 22.4% over 2015-20 to reach $55 billion. With
72% of market share (in terms of revenues), generic drugs forms the largest segment of the Indian pharmaceutical sector.
Growing number of stress related diseases owing to change in lifestyle, industry cost efficiencies and manufacturing hub for
generics drugs are some of the leading factor credited for high growth of the domestic pharma industry. Further, Indian
pharma market is also growing at a significant pace on the back of strong growth drivers such as favorable demographics,
rising health awareness, increasing penetration of health insurance and rising government spending on healthcare
infrastructure. From 2015 to 2017, drugs with estimated total sales of US$43.8 billion are expected go off-patent, leading to a
huge surge in generic products, which would also provide remarkable opportunities to the Indian companies. Structure of
Pharma sector in India is given below ….
Indian pharmaceutical industry is an important contributor to the foreign reserve of the country with around 50% of industry
revenue coming from overseas market. Country wise, the US is major importer of Indian pharma products followed by Russia,
Germany and Austria. Industry exports grew by 16.3% CAGR over the past five years to around $24.6 billion in FY15.
Industry's export is mainly driven by low cost manufacturing, high process chemistry skills, approved manufacturing facilities
and increasing numbers of drug master filings.
Over the past years, pharmaceutical industry have grown inorganically through acquisition, but due to significant demand
drivers, companies have been now focusing more on improving operational efficiencies and also seeking more licenses for
innovators products and newer technologies. However, rising competition and regulatory approvals and compulsory licensing
has become a key concern for the industry, which requires careful considerations by the domestic pharma firms. To sustain
the robust growth for the future and to play major role in global pharma market, Indian pharma companies will have to
adjust regulatory environment, strengthening the supply of low-cost, quality medicines across the world besides capitalizing
growth opportunities provided by the global pharma market.
2
Source: Choice Broking, Company data, RHP
Alkem Laboratories Ltd.
Active Pharmaceuticals
Ingredients/ Bulk drugs
Branded Generics
Formulations
AcuteChronic
Pharmaceuticals
6
37
55
0
10
20
30
40
50
60
2005 2015 E 2020 (P)
Industry Revenue ($ bn)
71%
19%
10%
Market share by Revenue
Generic drugs
OTC Medicines
Patented drugs
3. FUNDAMENTAL RESEARCHSEBI CERTIFIED – RESEARCH ANALYST
IPO Update
Company Introduction:
Alkem Laboratories Ltd., the fifth largest pharmaceutical company in Indian market with global operations, is engaged in the
development, manufacture, and sale of pharmaceutical and neutraceutical products. The company produces branded
generics, generic drugs, active pharmaceutical ingredients (“APIs”) and Nutraceuticals, which they market in India and 55
countries internationally, primarily the United States (US). Alkem has a total of 16 manufacturing facilities out of which 14
manufacturing facilities at 5 locations locate in India and 2 in the United States. The company 5 of their facilities are USFDA,
TGA and UK-MHRA approved. Of the Indian manufacturing facilities, 12 are for manufacturing formulations and 2 for
manufacturing APIs.
Business Overview:
Alkem’s domestic and international operations accounted for 74.7% and 25.3% of total revenue by fiscal year 2015. Alkem
was the fifth largest pharmaceutical company in India in terms of domestic sales in FY15. The company has the largest
number of brands with five brands ranking among the top 50 brands of the Indian pharmaceutical industry as of fiscal year
2015 in domestic sales. The company’s most significant therapeutic areas in the domestic market are anti-infectives, gastro-
intestinal, pain and analgesics, and vitamins, minerals, and nutrients. These therapeutic areas accounted for 80.7% of total
sales in the domestic market for fiscal year 2015. Company domestic business has grown has grown at a CAGR of 17.6% in the
period from fiscal year 2011 to fiscal year 2015. Alkem is the third 3rd fastest growing company in terms of sales in 2011-
2015 among the 10 largest pharmaceutical companies in the Indian domestic formulations market.
Investment Rationale
1) Market leadership in various therapeutic areas
The established record of strong performance and reputation for quality products in various therapeutic areas has helped
Alkem Laboratories to build reputable brands in the pharmaceutical market in India. The company is a leader in the largest
therapeutic area (anti-infective category) with 11.2% market share and during FY15 it ranks third in terms of market share in
the therapeutic areas of gastro-intestinal (5.6% market share) and pain/analgesics (5.0% market share) in India. Further,
Alkem has the highest number of brands (five) among the top 50 brands (along with another leading pharmaceutical
company) in the Indian pharmaceutical industry and also had 13 brands among the top 300 brands in the Indian
pharmaceutical industry for fiscal year 2015. Alkem’s product selection revolves around their desire to find products, which
will potentially enjoy a large prescriber base. Better response to products helps Alkem to build big brands. Rest of the
business model is aligned to this process, right from an industry-leading distribution network of more than 7,000 stockists
and close to 6,000 medical representatives.
As a result of our strong sales, marketing and distribution capabilities, company’s products are prescribed by an estimated
210,885 prescribers constituting 70.7% of total prescribers. In spite of enhancing reach in domestic region, the company is
also improving sales and distribution infrastructure through focusing more on infrastructure technology. We are of the view
that focused marketing strategies, trained medical representatives and distribution network enable the company to increase
our market share across key therapeutic areas and build and develop brands.
3
Alkem Laboratories Ltd.
Names of Brands Number of Brands Sales Range (Rs mn, FY15)
Clavam, Taxim-O, Taxim 3 Above 1,500
Pan, Pan D 2 1,000 – 1,499
Gemcal, A to Z NS, Sumo, Ondem, Xone 5 500 – 999
Swich, Zocef, Xone-XP, Pipzo, Hemfer, Uprise-D3, Traxol,
Cheri, Enzoflam, Taximax, Indclav, Traxol-S
12 250 – 499
4. FUNDAMENTAL RESEARCHSEBI CERTIFIED – RESEARCH ANALYST
IPO Update
2) Strong research and development capabilities
Pharmaceuticals business depends to a significant degree on the company ability to successfully conduct research and
development (R&D) with respect to products. Continued focus on R&D helped Alkem to strengthened product offering in
India, the United States and other international markets. Company’s research and development department carries out
process development, formulation development and analytical research for domestic and international markets. R&D
expenses for FY15 stood at 4.5% of revenue and 3.3% of revenue during H1FY16. The company has four research and
development facilities, two in India and two in the United States. As of October 31, 2015, Alkem has employed 480 scientists
working on various drug products and substances in India and the United States. In addition, Alkem has the regulatory affairs
and intellectual property experts, which are responsible for various filings and approvals related to the products and
understanding and filing with respect to intellectual property rights in India and internationally.
3) Taking initiatives to diversify business
Earlier, Alkem focused on building their presence in India market. However over the past few years, Alkem is expanding its
business internationally through organic and inorganic approach. International markets now account for 25% of Alkem
revenue and US business represented around 17% of the company revenue. This has been largely possible due to company’s
efforts to build its presence in the US. As of October 31, 2015, Alkem has filed 69 ANDAs in the United States of which 21
have been approved and 2 have received tentative approvals. Out the 69 ANDAs, 30 were Para IV filings including first-to-files
(“FTFs”). Alkem has also filed 1 New Drug Application (“NDA”) -that has received final approval. The remaining ANDAs are at
various stages of the approval process. As of October 31, 2015, Alkem has filed the following applications in international
markets:
4) International business growing at rapid pace
Having established in the Indian pharmaceuticals market, Alkem has expanded internationally through both organic growth
and certain strategic acquisitions. The United States is the key focus market for their international operations. Alkem market
and sell their products in the United States under the brand “Ascend”. to major pharmacy chains’ stores, wholesalers,
managed care companies, distributors, food and grocery stores and pharmaceutical retailers. In addition to the US, Alkem
sells products in 54 countries, including Australia, Chile, Philippines and Kazakhstan. Revenues from their international
operations have grown at a CAGR of 45.7% during 2011-2015. The contribution of the net revenues from the international
operations has grown from 12.6% of the net revenues from operations in fiscal year 2011 to 25.3% of the net revenues from
operations in fiscal year 2015.
4
Alkem Laboratories Ltd.
Country Filed Approved
US(ANDA) 69
21 (3 tentative
approval)
US (NDA) 1 1
Australia 22 18
Europe 16 7
Philippines (Dossiers for each
strength)
55 51
Chile (Dossiers for each
strength)
110 69
Kazakhstan (Dossiers for each
strength)
66 52
Other Countries 1,166 743
87%
75%
13%
25%
0%
20%
40%
60%
80%
100%
120%
FY11 FY15
Initiatives to diversify into new
markets have yielded positive results
India International
Source: Choice Broking, Company data, RHP
5. FUNDAMENTAL RESEARCHSEBI CERTIFIED – RESEARCH ANALYST
IPO Update
5) Strong Financial growth : Sales grew at 22.5% CAGR during FY11-FY15 to Rs37,887.1 mn led by strong domestic sales and
increasing international presence. PAT grew to Rs4625.6 mn in FY15 from Rs2,957.7 mn in FY11. Cash flow from operations
increased to Rs 3,282 mn in FY15 from Rs1,479.2 mn in FY11. EBITDA margins contracted from 18.6% in FY12 to 12.9% in
FY15, led by higher cost of raw material and employee cost. Alkem’s revenue grew 36% and NPM jumped to 18% during
1HFY16. The major reason for the jump in revenues is consolidation of financial of the two independent subsidiaries namely
Cachet and Indchemie. Both Cachet and Indchemie operated as Alkem’s sister companies with similar promoter shareholding
as Alkem. As a part of the listing effort, a majority stake (51%) in these entities has been acquired by Alkem. Due to this, their
numbers are now consolidated with Alkem for the first time during 1HFY16.
Risks & Concerns
Rising competition and investment in Research and Development (R&D)
Change in policies related to tax, duties or other such levies applicable
Currency Fluctuation: Volatility in exchange rate can impact the exports business of pharma companies
EBITDA margins contracted over the last three years
Valuation
Alkem Laboratories Ltd. has a market leadership in various therapeutic areas and ability to build market leading brands in the
domestic market. It has extensive sales, marketing and distribution network in India and strong research and development
capabilities which enhance the company product portfolio. During FY11-FY15, EBITDA margin of the company remained in
the range of 13-18%, PAT margins at 12-17% and currently it is growing at CAGR of 20%. After annualizing the net profit, FY16
EPS stands at Rs72.1 (post issue). At higher price band of Rs1,050, Alkem’s shares are available at P/E multiple of 14.6x its
FY16EPS, which is 30% discount to the average PE multiple of around (P/E 21x) of industry peers. Thus, we recommend
investors to ‘Subscribe’ the issue.
5
Alkem Laboratories Ltd.
0.0
10,000.0
20,000.0
30,000.0
40,000.0
FY11 FY12 FY13 FY14 FY15
Rsmn
Sales grew by 22% CAGR during FY11-FY15
Operating Income EBIDTA Adjusted PAT
Relative Valuation
Companies (Rs mn)
CMP
(Rs)
6M R(%)
12M
R(%)
P/E (x)P/Bv (x)
EBIDTA
Margin (%)
NPM (%)
CAGR Sales
(P4FY)
Net
Worth
Alkem Laboratories Ltd. 1,050 - - - 4.2 12.9% 12.2% 23.4% 29,952.4
Torrent Pharmaceuticals Ltd. 1,489 22.4% 26.1% 19.3 10.2 28.0% 16.1% 20.0% 24,905.6
Alembic Pharmaceuticals Ltd. 680 25.6% 50.4% 25.6 14.5 19.7% 13.7% 12.0% 8,846.4
Glenmark Pharmaceuticals Ltd. 953 12.3% 16.5% 17.4 8.6 29.3% 19.1% 47.6% 30,003.4
Average 1043 20.1% 31.0% 20.8 9.4 22.5% 15.3% 25.7% 23426.9
Particulars Pre Dilution Post Dilution
EPS - 30th Sept 15 36.1 36.1
EPS - Annualised 72.1 72.1
P/E Ratio
At Rs1,020 14.1 14.1
At Rs1,050 14.6 14.6
6. FUNDAMENTAL RESEARCHSEBI CERTIFIED – RESEARCH ANALYST
IPO Update
6
Profit and Loss Statement
Particulars (Rs mn) FY11 FY12 FY13 FY14 FY15
Operating Income 16,907.9 20,156.4 24,952.3 31,260.0 37,887.1
Other Income 1,134.2 1,452.8 1,671.7 1,652.7 1,810.3
Total Operational Expenditure 14,042.1 16,404.3 21,327.8 27,159.5 33,015.9
Cost of Material Consumed 5,219.5 6,257.2 7,118.5 7,728.3 8,620.3
Changes in Inventories of FG
& WIP
(84.9) (1,144.3) (1,413.8) (502.1) (336.8)
Employee Benefit Expenses 2,670.9 3,034.5 4,122.9 5,315.6 6,374.9
Other Expenses 3,850.2 5,025.1 6,644.9 7,987.0 9,735.2
Purchase of traded goods 2,386.4 3,231.8 4,855.3 6,630.7 8,622.3
EBIDTA 2,865.8 3,752.1 3,624.5 4,100.5 4,871.2
EBIDTA Margin 7.6% 18.6% 14.5% 13.1% 12.9%
Depreciation & Amortization 274.3 290.3 397.9 522.6 703.0
PBIT 2,591.5 3,461.8 3,226.6 3,577.9 4,168.2
Financial Charges 412.3 581.0 882.3 930.8 811.1
Profit before Tax 3,313.4 4,333.6 4,016.0 4,299.8 5,167.4
Tax 355.7 275.2 179.7 (53.6) 541.8
Profit After Tax (PAT) 2,957.7 4,058.4 3,836.3 4,353.4 4,625.6
Less: Exceptional items 0 0 0 0 0
PAT after excep. Items 2,957.7 4,058.4 3,836.3 4,353.4 4,625.6
Add/(Less): Minority interest 1.9 (7.0) (1.9) 0.0 0.0
Adjusted PAT 2,955.8 4,065.4 3,838.2 4,353.4 4,625.6
NPM 17.5% 20.2% 15.4% 13.9% 12.2%
EPS (Rs) 24.7 34.0 32.1 36.4 38.7
Financial Ratios
Particulars FY11 FY12 FY13 FY14 FY15
RoE (%) 20.7% 22.4% 17.7% 16.9% 15.4%
RoCE (%) 15.8% 17.4% 15.1% 15.0% 14.5%
Basic EPS (Rs) 24.7 34.0 32.1 36.4 38.7
BVPS (Rs) 119.5 151.8 181.7 215.8 250.5
Cash EPS (Rs) 14.3 20.6 26.6 30.7 44.1
Inventory days 54.2 69.7 81.0 72.4 75.6
Debtor days 36.9 44.7 46.5 42.8 50.8
Trade payable days 36.2 50.0 42.1 35.7 44.5
119.5 34.2 61.6 23.0 31.9
Total assets turnover 0.6 0.6 0.6 0.7 0.7
Fixed assets turnover 3.5 3.0 2.8 3.2 3.3
Total Debt (Rs mn) 9,093.6 9,819.5 14,690.5 10,774. 11,620.0
D/E 0.6 0.5 0.7 0.4 0.4
Debt/EBIDTA 3.2 2.6 4.1 2.6 2.4
Interest Coverage 6.3 6.0 3.7 3.8 5.1
Alkem Laboratories Ltd.
Cash Flow Statement
Particulars (Rs mn) FY11 FY12 FY13 FY14 FY15
Net cash flow from operating
activities
1,479.2 1,590.5 780.5 2,900.3 3,282.0
Net cash flow from investing
activities
(8,227.9) (2,475.0) (4,035.2) 3,504.4 (2,370.)
Purchase of fixed assets (1,203.2) (2,493.7) (2,348.2) (1,036.0) (1,381.)
Net cash flow from financing
activities
7,788.7 (110.7) 3,556.4 (5,999.5) (517.8)
Net Increase in Cash and Cash
Equivalents
1,040.0 (995.2) 301.7 405.2 394.2
Cash and cash equivalents At
the beginning
199.8 1,239.6 263.5 573.1 1,008.2
Net Increase in Cash and Cash
Equivalents
1,239.8 244.4 565.2 978.3 1,402.4
Effect of exchange rate
changes on cash and bank
balances
0.0 3.4 1.3 19.3 5.6
Cash and cash equivalents At
the end
1,239.6 263.5 573.1 1,008.2 1,396.0
Cash balance as per balance
sheet
1,239.6 263.5 573.1 1,008.2 1,396.0
diff 0.0 0.0 0.0 0.0 0.0
Balance Sheet
Particulars (Rs mn) FY11 FY12 FY13 FY14 FY15
Share Capital 119.6 119.6 119.6 119.6 239.1
Reserves & Surplus 14,160.9 18,024.5 21,597.1 25,673.9 29,713.3
Net Worth 14,280.5 18,144.1 21,716.7 25,793. 29,952.4
Deffered Govt. grant 35.8
Minority Interest 18.2 1.9 856.5
Non-Current Liabilities 4,370.4 5,279.7 3,655.0 3,316.6 2,048.6
Long term borrowings 2,462.6 3,089.7 2,555.9 2,322.5 334.3
Deffered tax liabilities
(net) 228.1 336.6 481.3 441.9 945.6
Other long-term
liabilities 6.7 1.9 123.3 77.8 51.4
Long-term provisions 1,673.0 1,851.5 494.5 474.4 717.3
Current liabilities 9,848.6 11,235.9 17,348.0 14,055. 20,120.0
Short term borrowings 6,631.0 6,729.8 12,134.6 8,452.2 11,285.7
Trade payables 1,676.9 2,760.3 2,875.9 3,057.3 4,619.2
Other current liabilities 903.9 1,118.0 1,874.5 2,042.8 3,370.9
Short term provisions 636.8 627.8 463.0 503.5 844.2
Total Liabilities 28,517.7 34,661.6 42,719.7 43,165. 53,013.3
Fixed Assets 4,885.0 6,741.1 8,963.6 9,796.7 11,429.3
Goodwill on
consolidation 2,042.3 2,450.6 1,757.6 1,903.4 3,421.0
Non current investments 61.0 2,989.1 4,103.3 3,382.4 4,197.6
Long term loans and
advances
1,539.8 2,588.2 3,393.9 4,184.0 5,421.7
Other non current
assests
4,604.1 6,765.3 2,927.2 7,826.8 5,063.0
Deferred tax assets (net) 4.4 11.9 51.1 44.8
Total non current assets 13,132.2 21,538.7 21,157.5 27,144. 29,577.4
Current Assets 15,385.5 13,122.9 21,562.2 16,021. 23,435.9
Current Investments 477.0 237.8 673.1 2,497.7 610.5
Inventories 2,508.7 3,849.2 5,539.6 6,203.3 7,842.3
Trade receivable 1,710.2 2,466.1 3,182.1 3,669.3 5,270.8
Cash and bank balance 9,898.2 5,138.1 9,954.5 2,062.9 7,907.6
Short term loans and
advances 430.1 973.5 1,330.7 1,259.8 1,296.3
Other current assets 361.3 458.2 882.2 328.5 508.4
Total Assets 28,517.7 34,661.6 42,719.7 43,165. 53,013.3
diff 0.0 0.0 0.0 0.0 0.0
7. FUNDAMENTAL RESEARCHSEBI CERTIFIED – RESEARCH ANALYST 7
INITIATING COVERAGE
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