2. INTRODUCTION :ABOUT THE
COMPANY
CIPLA
• Cipla Limited is an Indian multinational pharmaceutical company,
headquartered in Mumbai, India
• As of 17 September 2014, its market
capitalization was ₹49,611.58 crore (equivalent to ₹560 billion or
US$7.5 billion in 2020), making it India's 42nd largest publicly
traded company by market value.
3. SUN PHARMACUETICAL LTD
• Sun Pharmaceutical Industries Limited is
an Indian multinational pharmaceutical company headquartered
in Mumbai, Maharashtra, that manufactures and sells
pharmaceutical formulations and active pharmaceutical
ingredients (APIs) primarily in India and the United States.
• Sun Pharmaceutical Industries Ltd is the fourth largest specialty generic
pharmaceutical company in the world with global revenues of over US$
4.5 billion. Supported by more than 40 manufacturing facilities, we
provide high-quality, affordable medicines, trusted by healthcare
professionals and patients, to more than 100 countries across the
globe.
4. OBJECTIVES :
• To study the financial position of cipla and sun
pharmaceutical
• To study which company’s financial position is
better than the other.
5. COLLECTION OF DATA
The data has been collected from the primary and secondary sources:
Primary data
Department visit- discussion with the concerned person and interviewing officers in accounts and
finance sector.
Observation method.
Secondary data
Annual reports
Journals and magazines
Study of files and office documents
Websites of CIPLA and SUN PHARMA
6. RESEARCH METHODOLOGY
The study will be based on the QUANTATIVE and QUALITATIVE
approach of the working capital management model at CIPLA needs a
thorough study. With the help of RATIO ANALYSIS & TREND ANALYSIS
the result of the control mechanism can be summarised which will help in
identifying the effectiveness of the system under the preview. The data for
the companies under analysis has been taken from their respective
websites of the companies. `MICROSOFT EXCEL has been used as a tool
for different calculation purposes and developing the charts.
8. 0
50
100
150
200
250
8.92 8.92 11.36
104.36 104.36
7.5
53.36
12.86 10.42 8.97 8.92
30.61 30.5 37.5
247.1 247.1
5 12.3
49 42.11 41.55
30.61
PER SHARE RATIO
SUN PHAMA CIPLA
SUN
PHAMA CIPLA
basic EPS 8.92 30.61
Diluted EPS 8.92 30.5
Cash EPS 11.36 37.5
book value (Exclusive Reserves) 104.36 247.1
book value (Inclusive Reserves) 104.36 247.1
Dividents 7.5 5
Revenue from operatios 53.36 12.3
PBDIT 12.86 49
PBIT 10.42 42.11
PBT 8.97 41.55
Net Profit 8.92 30.61
PER SHARE RATIO
9. PROFITABILITY RATIO
SUN
PHAMA CIPLA
PBDIT MARGIN 24.1 28.42
PBIT MARGIN 19.52 24.42
PBT MARGIN 16.81 24.1
NET PROFIT MARGIN 16.71 17.5
Return of worth/Equity 8.54 12.38
Return on Capital Employed 8.15 16.75
Return on Assets 5.48 10.74
Total Debts 0.26 0
Assets Turover Ratio 32.82 60.53
0
20
40
60
80
24.1
19.52 16.81 16.71
8.54 8.15 5.48
0.26
32.82
28.42
24.42 24.1 17.5
12.38
16.75
10.74
0
60.53
PROFITABILITY RATIO
SUN PHAMA CIPLA
PROFITABILITY RATIO
10. LIQUIDITY RATIO SUN PHARMA CIPLA
current ratio 1.45 3.79
Quick ratio 1.07 2.64
Inventory turnover ratio (x) 4.04 4.5
Dividend payout ratio (NP) 72.86 0
Dividend payout ratio (CP) 57.18 0
Earnings retention ratio 27.14 0
Cash earnings rentention ratio 42.82 0
LIQUIDITY RATIO
11. VALUATION RATIO SUN PHARMA CIPLA
Enterprise value 149,635.45 64,871.04
EV/Net operating revenue 11.69 4.67
EV/EBITDA 48.49 16.42
MarketCap/Net operating value 11.2 4.73
Retention ratio 27.13 0
Price/BV 5.73 3.3
Price/Net operating revenue 11.2 4.73
Earnings Yield 0.01 0.04
VALUATION RATIO
12. INTERPRETATION
PER SHARE RATIO
In the per share ratio category we can say that Cipla is performing better
than Sun pharma because its EPS/net profit is more (cipla -30.61)(Sun
pharma -8.92).
PROFITABILITY RATIO
CIPLA again had performed better in the profitability ratio category as
shown in the graph PBDIT margin is 28.42 of cipla and 24.1 of Sun
pharma.
13. LIQUIDITY RATIO
Cipla performed better in the liquidity ratio category. As the current ratio or
cipla is 3.79 and sun pharma 1.46. The more the current ratio the more
easily compay pay off the liabilities.
VALIDATION RATIO
The enterprise value of sun pharam is more than cipla.
14. CONCLUSION:
• We conclude that CIPLA is performing better in every aspect than Sun
pharma. Cipla is better in per share ratio, profitably and liquidity.
