Project on pharmaceutical industry

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A

Summer Internship Project Report

On

“FUNDAMENTAL ANALYSIS ON

PHARMACEUTICAL SECTOR USING RELATIVE

VALUATION MODEL”

Company: Birla Sun Life Insurance Company

Submitted in the partial fulfillment of the

requirements for

Post Graduate Diploma in Management - PGDM

SUBMITTED BY

Name: Vamsi Krishna Bodavula PGDM 2 /1546

Batch: 2015-17

UNDER GUIDANCE OF Prof. Siddhartha Bose

Universal Business School,

Mumbai (Karjat), 410201

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Acknowledgement

It gives me immense pleasure to present this Concurrent Project Report. However, it would not

have been possible without help and support of all the team members of Birla Sun life

Insurance Company

I would like to thank Prof. Siddhartha Bose for guiding me in my tenure of internship on May

1st 2016 to July 5th 2016. Without their support and guidance, I wouldn’t have come so far to

prepare this report.

I would like to express my thankfulness to Universal Business School, who has given me great

opportunity to work on this project.

I am also grateful to my loving parents and my kind friends whose prayers, affection and support

are always a source of encouragement. Their suggestions and supply of information were really

very valuable and helpful to me. Their continuous encouragement and support helped me for

completing this project successfully.

Vamsi Krishna Bodavula,

PGDM 2 /1546

Specialization: Finance,

Universal Business School, Mumbai (Karjat).

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CERTIFICATE

This is to certify that the project entitled “Fundamental Analysis On Pharmaceutical Sector Using

Relative Valuation Model”, submitted to Universal Business School, Mumbai (Karjat) in the

partial fulfilment of the requirements for the award of the Post Graduate Diploma in Management

(PGDM) embodies the results of bonafide project work carried out by Vamsi Krishna Bodavula

under my guidance and supervision.

To the best of my knowledge the results embodied in this project have not been submitted to any

other university or institute for the award of Degree or Diploma. The assistance and help received

during the course of this investigation has been duly acknowledged.

Project Guide: Siddhartha Bose Program Director (PGDM): Prof. Vijay Tandon

Date: 29/08/2016

Place: Mumbai (Karjat)

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DECLARATION

This is to declare that I Vamsi Krishna Bodavula of Universal Business School, Mumbai

(Karjat), PGDM batch 2015-2017, has given original data and information to the best of my

knowledge in the project report titled Fundamental Analysis On Pharmaceutical Sector Using

Relative Valuation Model is a record of independent work carried out by me under the guidance

and supervision of the Prof. Siddhartha Bose towards the partial fulfilment of requirement for the

PGDM course.

I also agree in principal not to share the vital information with any other person outside the

organization and that I have not submitted it for any award or any other title, degree or diploma.

Date: 29/08/2016

Place: Mumbai (Karjat)

Name: Vamsi Krishna Bodavula

PGDM 2 /1546

Specialization: Finance

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CHAPTER NO TOPIC PAGE NO.

PART A

Chapter 1 Introduction

1.1 Research back ground 10

1.2 Detail of company 11-16

1.3 Pharmaceutical Sector 17

1.4 Need for study 18

1.5 Objective of study 18

1.6 Scope of the study 18

Chapter 2 Review of literature 19-21

Chapter 3 Research Methodology

3.1 Type of research Design 22

3.2 Sources of Data (primary and secondary) 22

PART B

Chapter 4 Analysis and interpretation of data 24-53

List of Table 24-53

List of Figure 24-53

Findings & Suggestions 47-50

Chapter 5 Conclusion 54

Chapter 6 Recommendations 55

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Chapter 7 Limitations 56

Chapter 8 Bibliography 57

Financial Tear Sheet 58-59

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PART A

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EXECUTIVE SUMMARY

This project report is about the ‘Equity research in pharmaceutical sector using relative valuation

model’. It consist the study of pharmaceutical sector on macroeconomic and microeconomic basis.

E-I-C framework is used for equity research. It will be helpful for investors who are looking for

investment in pharmaceutical sector companies. It will give them approach for investment in

whichever sector they want to invest.

Also, sectorial mutual fund in pharmaceutical sector (individually) and mutual fund with diverse

sectors (team) are also created. Their performance is analyzed with respect to benchmark NIFTY

500 index. Depending upon the analysis we reached to conclusion whether our mutual fund is

really performing well or not compared to market.

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CHAPTER –1

INTRODUCTION

1.1 Research Background:

“This study suggests that people are reluctant while investing in stock market

due to lack of knowledge…”

This is the project on the analyzing of equities to invest the money to future for get higher return

on investment. This is the project report to all investor who want to invest their money in equities.

But they should analysis the securities before to invest because the money has very much value in

our life...

I choose this project to do because I want to analysis the equities for investor point of view so they

can get good return in future, by using fundamental and technical analysis of securities and try to

understand the movement and performance of stocks and also try to know the factors that affect

the movement of stock prices in the Indian stock market.

Through this project we were also able to understand, what are the companies’ positive points, on

the basis of which we come to know what, can be the basis of pitching to a potential client.

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1.2 Details of Company

Established in 2000, Birla Sun Life Insurance Company Limited (BSLI) is a joint venture

between the Aditya Birla Group, a well-known and trusted name globally amongst Indian

conglomerates and Sun Life Financial Inc., leading international financial services organiza t ion

from Canada. The local knowledge of the Aditya Birla Group combined with the domain expertise

of Sun Life Financial Inc., offers a formidable protection for its customers’ future.

With an experience of over 10 years, BSLI has contributed significantly to the growth and

development of the life insurance industry in India and currently ranks amongst the top 5 private

life insurance companies in the country.

It is known for its innovation and creating industry benchmarks, BSLI has several firsts to its

credit. It was the first Indian Insurance Company to introduce “Free Look Period” and the same

was made mandatory by IRDA for all other life insurance companies. Additionally, BSLI

pioneered the launch of Unit Linked Life Insurance plans amongst the private players in India.

To establish credibility and further transparency, BSLI also enjoys the prestige to be the originator

of practice to disclose portfolio on monthly basis. These category development initiatives have

helped BSLI be closer to its policy holders’ expectations, which gets further accentuated by the

complete bouquet of insurance products (viz. pure term plan, life stage products, health plan and

retirement plan) that the company offers.

Add to this, the extensive reach through its network of 600 branches and 175,000 empanelled

advisors. This impressive combination of domain expertise, product range, reach and ears on

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ground, helped BSLI cover more than 2 million lives since it commenced operations and establish

a customer base spread across more than 1500 towns and cities in India. To ensure that our

customers have an impeccable experience, BSLI has ensured that it has lowest outstanding claims

ratio of 0.00% for FY 2008-09. Additionally, BSLI has the best Turn Around Time according to

LOMA on all claims Parameters. Such services are well supported by sound financials that the

Company has. The AUM of BSLI stood at Rs. 8165 crores as on February 28, 2009, while as on

March 31, 2009, the company has a robust capital base of Rs. 2000 crore.

VISION

To be a leader and role model in a broad based and integrated financial services business.

MISSION

To help people mitigate risks of life, accident, health, and money at all stages and under all

circumstances.

Enhance the financial future of our customers including enterprises.

VALUES

Integrity

Commitment

Passion

Seamlessness

Speed

A US $28 billion corporation, the Aditya Birla Group is in the league of Fortune 500 worldwide.

It is anchored by an extraordinary force of 100,000 employees, belonging to 25 different

nationalities. The group operates in 25 countries across six continents – truly India's first

multinational corporation.

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Aditya Birla Group through Aditya Birla Financial Services Group (ABFSG), has a strong

presence across various financial services verticals that include life insurance, fund management,

distribution & wealth management, security based lending, insurance broking, private equity and

retail broking. The seven companies representing ABFSG are Birla Sun Life Insurance

Company, Birla Sun Life Asset Management Company, Aditya Birla Money, Aditya Birla

Finance, Birla Insurance Advisory & Broking Services, Aditya Birla Capital Advisors and

Apollo Sindhoori Capital Investment. In FY 2008-09, the consolidated revenues of ABFSG from

these businesses crossed Rs. 4763 crore, registering a growth rate of 36%.

Sun Life Financial is a leading international financial services organization providing a diverse

range of protection and wealth accumulation products and services to individuals and corporate

customers. Chartered in 1865, Sun Life Financial and its partners today have operations in key

markets worldwide, including Canada, the United States, the United Kingdom, Ireland, Hong

Kong, the Philippines, Japan, Indonesia, India, China and Bermuda. As of December 31, 2008,

the Sun Life Financial group of companies had total assets under management of $381 billion.

SWOT ANALYSIS

STRENGTH:

1. Has Network of 600 branches and advisors spread over 1500 towns in India having over

130,000 advisors

2. Backed by Aditya Birla Brand and Sun Life financial services.

3. Emphasis on customer satisfaction through transparent functioning.

4. Strong capital base.

WEAKNESS:

1. Low presence in rural market.

2. Lesser advertising as compared to competitors.

OPPORTUNITY:

1. Growing potential in the rural market.

2. Alignment with Government Schemes.

3. Better awareness amongst people for getting insurance.

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AWARDS

At Birla Sun Life Insurance, winning is a way of life. Our innovative solutions and customer-

friendly services have been admired, appreciated and rewarded by customers and the industry at

large.

Recruiting and Staffing Best in Class Awards.

Outlook Money Awards 2004 BSLI - Best Life Insurer (Runner Up) 2004 TROPHY

The 8th Asia Insurance Industry Awards 2004 - Birla Sun Life Insurance was among the top

five nominees in the category.

The Indo-Canadian Business Chamber- BSLI awarded for its 'Successful Performance' for 4

years April 2005.

Birla Sun Life Insurance was presented 'The Hewitt Best Employers in India Awards 2004'

Trophy.

Birla Sun Life Insurance was awarded 'The Great Place to Work Seminar Series 2007’

Presented by Anil Sachdev (Chairman & MD of Grow Talent Company Ltd) Robert Levering

(Co-founder Great Place to Work Institute) and Jehangir Pocha (Business World Magazine).

The Bhartiya Shiromani Puraskar awarded to BSLI at the seminar on "Economic

Development” New Delhi, on February 13, 2006. This is a Certificate of Excellence for

Enhancing the image of India presented by Dr. Bhishma Narain Singh (Former Governor of

Tamil Nadu & Assam) in association with the "Institute of Economic Studies (IES)".

Hewitt Best Employers in India 2004.

Sponsorship Acknowledgement for - The Asia Insurance Review.

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FUTURE

BUSINESS CONTINUITY PLAN

Birla Sun Life Insurance is one of the few Indian companies to have a fully operational Business

Continuity Plan (BCP) to ensure minimal impact to the organization, its people, and most

importantly, its customers. Our Business Continuity Planning (BCP) Program is a response plan

which would ensure that in the event of a disaster we would be able to restore and recover

operations for critical processes within a predetermined time after the disaster.

BSLI’S BUSINESS CONTINUITY MANAGEMENT POLICY

To have a planned response in the event of any contingency ensuring recovery of critical activit ies

at agreed levels within agreed timeframe thereby complying with various regulatory requirements

and minimizing the potential business impact to BSLI. Additionally, to create a system that fosters

continuous improvement of business continuity management.

BUSINESS CONTINUITY MANAGEMENT SYSTEM OBJECTIVES (BCMS):

The objectives of BSLI's BCMS are as follows

Ensuring a Proactive response to any contingency

Ensuring recovery of identified critical activities within agreed timeframe.

Ensuring that we adhere to our clients, contractual, legal & regulatory requirements.

PROGRAMME OVERVIEW

As part of our Business Continuity Plan, we have a documented crisis response and recovery

procedure for quick response and stabilization of the situation, and a business continuity

procedure to ensure recovery.

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HIGHLIGHTS OF OUR PLAN DOCUMENT:

Alternate recovery sites if primary location is unavailable

Assurance to customers that they will continue to receive optimum customer services at all

times

Communication with customers, employees and other stakeholders

Crisis Management & incident response

Data back-up, data and system recovery

Recovery of all mission-critical business functions and supporting systems.

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1.3 Details about Pharmaceutical Sector

The number of purely Indian pharma companies is fairly low. Indian pharma industry is mainly

operated as well as controlled by dominant foreign companies having subsidiaries in India due to

availability of cheap labor in India at low cost. In 2002, over 20,000 registered drug manufacturers

in India sold $9 billion worth of formulations and bulk drugs. 85% of these formulations were sold

in India while over 60% of the bulk drugs were exported, mostly to the United States and Russia.

Most of the players in the market are small-to-medium enterprises; 250 of the largest companies

control 70% of the Indian market. Thanks to the 1970 Patent Act, multinationals represent only

35% of the market, down from 70% thirty years ago.

Most pharma companies operating in India, even the multinationals, employ Indians almost

exclusively from the lowest ranks to high level management. Homegrown pharmaceuticals, like

many other businesses in India, are often a mix of public and private enterprise.

In terms of the global market, India currently holds a modest 1–2% share, but it has been growing

at approximately 10% per year. India gained its foothold on the global scene with its innovative ly

engineered generic drugs and active pharmaceutical ingredients (API), and it is now seeking to

become a major player in outsourced clinical research as well as contract manufacturing and

research. There are 74 US FDA-approved manufacturing facilities in India, more than in any other

country outside the U.S, and in 2005, almost 20% of all Abbreviated New Drug Applicat ions

(ANDA) to the FDA are expected to be filed by Indian companies. Growth in other fields

notwithstanding, generics are still a large part of the picture. London research company Global

Insight estimates that India’s share of the global generics market will have risen from 4% to 33%

by 2007.The Indian pharmaceutical industry has become the third largest producer in the world

and is poised to grow into an industry of $20 billion in 2015 from the current turnover of $12

billion.

Objective:

The main objective of this project to understand that proper analysis of a company minimizes the

risk of losing money in stock market of any investor.

The other objective is to make people aware that other than cash market there is future and option

which is well known as derivative market to invest. In this they can earn profit even if they are in

loss in cash market.

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Scope:

The scope of project is limited to Understanding the basics of Fundamental analysis and Technica l

analysis and apply it to take a decision of investing in Pharmaceutical Sector Stocks and F&O

strategies for the same.

Assumptions:

This project is prepared on the assumption that most of the investment in stock market is done by

the brokers and not by the common man and on the other hand there are many people who want to

invest in stock market but fears as they think that it is luck game which is not totally true and this

might change their way of thinking.

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CHAPTER –2

LITERATURE REVIEW

Pharmaceutical industry would grow at 19% in 2013: Morgan Stanley January 10, 2013 | Jwalit Vyas, ET Bureau

MUMBAI: According to report by Morgan Stanley, Indian pharmaceutical industry would grow at 19% in 2013. “They expect the intellectual property investments in the past few years to start bearing fruits in US and EU markets in FY13. There will be new drug launches, new drug filings

and Phase II clinic trials throughout the year. ", said Samir Baisiwala, senior analyst with Morgan Stanley in his report.

Healthcare and pharmaceutical industry stimulating demand for hiring talent October 1, 2012

TimesJobs.com Bureau Where global market slowdown has affected the major employment generators such as IT/Telecom, BFSi and ITeS, Healthcare/Pharmaceutical sector reported enhanced hiring activity during the first half of 2012, reveals TimesJobs.com Biannual

Recruite X. "The Indian Healthcare sector is expected to reach US$ 100 billion by 2015 from the current US$ 65 billion, growing at around 20 % a year, according to rating agency Fitch.

Government may ease FDI norms in pharmaceutical industry July 25, 2012 | Khomba Singh & Deepshikha Sikarwar, ET Bureau

NEW DELHI: The government is likely to take a less harsh stand on foreign direct investment

(FDI) in pharmaceutical companies to ensure a balance between public health concerns and the

need to attract investments. An intermenstrual group set up by the finance ministry has favored

that all brown field FDI in pharmaceuticals up to 49% stake should be allowed under the

automatic route, two officials familiar with the development told ET.

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Government to make pharma marketing code mandatory: Hansraj Gangaram Ahir March 15, 2016 | PTI NEW DELHI: Government has decided to make Uniform Code of Pharmaceutical Marketing

Practice (UCPMP) mandatory in order to control unethical practices in the industry, Parliament was informed today. In a written reply to the Lok Sabha, Minister of State for Chemicals and

Fertilizers Hansraj Gangaram Ahir said the government had prepared a draft UCPMP which was adopted voluntarily with effect from January 1, 2015 for 6 months by the pharmaceutical industry.

Union Budget 2012: Pharmaceutical industry seeks higher expenditure on

R&D March 16, 2012 | Agencies

NEW DELHI: The pharmaceutical industry in its prebudget wish list has asked the Finance Minister Pranab Mukherjee to incentivise the sector to promote higher spending in research and

development. The industry has also sought a reduction in taxes and duties on life saving drugs and active pharmaceutical ingredients (API) to provide a fillip to its growth. Budget at ET: Budget 2012 | Union Budget.

Most pharma stocks could become 5 to 10 baggers in 57 years; Buy on declines: Experts March 11, 2015 | Kshitij Anand NEW DELHI: Analysts at top brokerage firms remain confident that rally in most of the pharma

stocks is justified, and there is also room for further upside. Long term investors should look at buying top pharma stocks on every decline in markets, they say. "I am very believer in a

pharmaceutical story and as I keep saying for years now that this is one story which you do not sell. This is a story where correction means a buy.

Sun Pharmaceutical Industries Q3 net profit surges threefold to Rs 1,417

crore February 12, 2016 | PTI

NEW DELHI: Sun Pharmaceutical Industries today posted over threefold jump in consolidated net profit at Rs 1,416.60 crore for the third quarter ended December 31. The drug major had posted

a net profit of Rs 395.33 crore during the same period of previous fiscal. Net sales of the company rose to Rs 7,046.57 crore for the third quarter as against Rs 6,885.46 crore in the same period of previous fiscal, Sun Pharma said in a regulatory filing.

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James Clausen (2009), in this article he barfly express about the liquidity ratio. He Pronounce

that it is analysis of the financial statements is used to measure company performance. It also

analyses of the income statement and balance sheet. Investors and lending institutions will often

use ratio analyses of the financial statements to determine the 11 company’s profitability and

liquidity. If the ratios indicate poor performance, investors may be reluctant to invest. Therefore,

the current ratio or working capital ratio, measures current assets against current liabilities. The

current ratio measures the company’s ability to pay back its short-term debt obligations with its

current assets. He thinks a higher ratio indicates the company is better equipped to pay off short-

term debt with current assets. Wherefore, the acid test ratio or quick ratio, measures quick assets

against current liabilities. Quick assets are considered assets that can be quickly converted into

cash. Generally, they are current assets less inventory.

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CHAPTER –3

RESEARCH METHODOLOGY

3.1 Types of research design

It is an exploratory research design. It is a research conducted for a problem that has not been

clearly defined. The name states merely to explore the research questions and does not intend to

offer final and conclusive solutions to existing problems.

This research gives an overview of fund allocation of media companies, fundamental analysis and

technical analysis and ratio analysis.

3.2 Sources of Data

Secondary data

Exploratory research is often secondary research such as reviewing available data and analyzing

the current situation.

Data is been extracted through secondary sources such as web, journals, relevant books etc.

In this research, company financials, charts and graphs are been extracted from various web

sources such as Equity masters, Money control, IBEF and stock exchange websites.

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PART B

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CHAPTER –4

ANALYSIS AND INTERPRETATION

Pharmaceutical Sector Analysis

• The Indian Pharmaceutical market (IPM) accounts for approx. 1.4% of the global

pharmaceutical industry in value terms and 10% in the volume terms. The IPM is

valued at Rs 860bn for the year ending March 2015. The growth in 2015 stood at

12.9%. Owing to robust historical growth and future prospects, many MNC companies

have active presence in the Indian pharmaceutical space.

• The IPM is highly fragmented with about 24,000 players (330 in the organized sector).

The top ten companies including domestic and MNC companies make up for more than

a third of the market. The market is dominated majorly by branded generics, which

constitutes nearly 70% to 80% of market.

• Besides the domestic market, Indian pharmaceutical companies also have a large chunk

of their revenues coming from exports. Major companies are focusing on the generics

market in the US, Europe and semi-regulated markets; others are focusing on custom

manufacturing for innovator companies. Biopharmaceuticals is also increasingly

becoming an area of interest given the complexity in manufacture and limited

competition.

• The past few years have been glorious ones for the Indian companies, as major

blockbusters lost their patent protection, paving way for generics. However, every

passing year is leaving lower patented drug opportunities for the Indian companies for

the launch of generics. Thus, Indian pharmaceutical companies have increased their

R&D expenses. The companies are spending more to establish niche product portfolios

for the future.

• The year gone by was one where M&A activity continued to attract interest of

companies globally. This included many Indian names too. Indian companies such as

Lupin, Cipla, Dr Reddy’s and others also showed keen interest. Lupin announced a

mega deal worth US$ 800 m for acquiring Gavis. On the other hand, Cipla and Dr

Reddy’s too made acquisitions in the US and India respectively.

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RATIOS

Net Profit Margin (Return on Sales) a measure of net income dollars generated by each dollar of sales.

Formula:

Net Income

Net Sales

Debt to Equity Indicates how well creditors are protected in case of the company's insolvency.

Formula: Total Debt

Total Equity

Interest Coverage Ratio (Times Interest Earned) indicates a company's capacity to meet interest payments. Uses EBIT (Earnings before

Interest and Taxes)

Formula:

EBIT

Interest Expense

Sales to Total Assets Ratio

Sales to Total Assets ratio indicate how efficiently the firm generates sales revenue on each

dollar of assets. It is defined as the total assets divided by the turnover of the firm.

Formula:

Sales to Total Assets = Sales / Total Assets

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FUNDAMENTAL ANALYSIS

Fundamental analysis of a business involves analyzing its financial statements and health, its

management and competitive advantages, and its competitors and markets. When applied to

futures and forex, it focuses on the overall state of the economy, interest rates, production,

earnings, and management. When analyzing a stock, futures contract, or currency using

fundamental analysis there are two basic approaches one can use; bottom up analysis and top

down analysis. The term is used to distinguish such analysis from other types of investment

analysis, such as quantitative analysis and technical analysis.

Fundamental analysis is performed on historical and present data, but with the goal of making

financial forecasts. There are several possible objectives:

To conduct a company stock valuation and predict its probable price evolution.

To make a projection on its business performance,

To evaluate its management and make internal business decisions,

To calculate its credit risk.

Fundamental analysis includes:

1. Economic analysis

2. Industry analysis

3. Company analysis

On the basis of this three analysis the intrinsic value of the shares are determined. This is

considered as the true value of the share. If the intrinsic value is higher than the market price it

is recommended to buy the share but if it is equal to market price hold the share and if it is less

than the market price sell the shares.

4.1 Valuation of Stock

We have considered only large cap stocks from pharma sector (i.e. companies having market

capitalization more than 5000 crore rupees) for investment purpose. Then we can decide whether

stock is undervalued or overvalued based on sectorial P/E ratio. If P/E ratio of company is less

than sectorial P/E ratio, then stock is considered undervalued else it is overvalued

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Table-1

Valuation of Companies Based On P/E Sr No Company name Market Cap (Rs. Cr.) Last Price P/E Sector P/E UV/OV

1 Sun Pharma 186,258.69 773.90 39.11 34.23 Over Valued

2 Lupin 66,652.10 1478.40 23.06 34.23 Under Valued

3 Dr Reddys Labs 55,379.53 3240.65 40.80 34.23 Over Valued

4 Aurobindo Pharma 42,298.98 722.85 26.07 34.23 Under Valued

5 Cipla 39,296.27 489.00 28.09 34.23 Under Valued

6 Cadila Health 32,759.76 320.00 16.57 34.23 Under Valued

7 GlaxoSmithKline 29,429.64 3474.45 78.43 34.23 Over Valued

8 Divis Labs 29,281.18 1098.75 26.33 34.23 Under Valued

9 Piramal Enter 24,069.10 1394.80 22.68 34.23 Under Valued

10 Torrent Pharma 22,529.47 1331.35 12.78 34.23 Under Valued

11 Glen mark Pharma 21,987.80 779.25 14.90 34.23 Under Valued

12 Biocon 15,142.00 757.10 30.00 34.23 Under Valued

13 Ajanta Pharma 13,068.30 1484.95 31.53 34.23 Under Valued

14 Alembic Pharmaceuticals 10,289.20 545.80 14.74 34.23 Under Valued

15 Natco Pharma 10,272.80 589.80 57.60 34.23 Over Valued

16 Wockhardt 9,927.01 898.30 31.22 34.23 Under Valued

17 Sanofi India 9,703.26 4227.35 30.28 34.23 Under Valued

18 Abbott India 9,587.69 4514.10 36.95 34.23 Over Valued

19 Strides Shasun 9,508.54 1068.25 54.78 34.23 Over Valued

20 Pfizer 8,495.35 1861.25 38.22 34.23 Over Valued

21 Ipca Labs 5,928.20 469.75 64.79 34.23 Over Valued

34.23

As on 26 August 2016

After comparing power sector P/E with individual company P/E we found stocks Sun Pharma,

Dr Reddys Labs, GlaxoSmith Kline, Nacto Pharma, Abbott India, Stride Shasun, Pfizer, Ipca

Labs are overvalued because their P/E ratio is more than average P/E for power sector.

Whereas remaining companies are undervalued stocks since their P/E ratio is less than sectorial

P/E for pharma sector.

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4.2 Value picks

After valuation of stocks and bifurcating them into undervalued and overvalued stocks, to pick

value stocks we consider undervalued stocks only. Then we check whether EPS of these stocks is

increased or not compared to last year performance. If EPS is increased, then we consider it as

value pick for portfolio.

Table-2

Sr No. Undervalued Companies EPS 2015 EPS 2016 % Changes Value Pick

1 Lupin 53.41 64.1 20.01% Yes

2 Aurobindo Pharma 52.01 27.73 -46.68%

3 Cipla 14.71 17.41 18.35% Yes

4 Cadila Health 62.08 19.31 -68.89%

5 Divis Labs 63.82 41.73 -34.61%

6 Piramal Enter 21.60 61.49 184.68% Yes

7 Torrent Pharma 36.83 104.20 182.92% Yes

8 Glenmark 37.14 52.31 40.85% Yes

9 Biocon 18.06 40.44 123.92% Yes

10 Ajanta Pharma 34.84 47.10 3518.94% Yes

11 Alembic Pharma 15.20 37.03 143.62% Yes

12 Wockhardt 30.17 2.97 -90.16%

13 Sanofi India 114.46 139.59 21.96% Yes

From table, we can see that there is EPS growth for stocks Lupin, Cipla, Piramal Enter, Torrent Pharma, Glen mark, Biocon, Ajanta Pharma, Alembic Pharma, Sanofi India hence we selected them as value stocks.

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4.3 Long Term Price Target

Long term price target gives investor idea till which point he/she should hold the share. Long term price target is product of sectorial P/E and EPS of company. Sectorial P/E we have calculated in

table 1. Here in the following table we have considered market price of share as on 24 June, 2016.

Table-3

Sr No. Value Pick Stock Last Price Sector P/E EPS LTPT

1 Lupin 773.9 34.23 64.1 1532.95

2 Cipla 489.00 34.23 17.41 501.3

3 Piramal Enter 1394.80 34.23 61.49 791.55

4 Torrent Pharma 1331.35 34.23 104.20 1352.8

5 Glen mark 779.25 34.23 52.31 1400.95

6 Biocon 757.10 34.23 40.44 1384.2612

7 Ajanta Pharma 1484.95 34.23 47.10 1516

8 Alembic Pharma 545.80 34.23 37.03 545.45

9 Sanofi India 4227.35 34.23 139.59 4271

So, this gives investor idea that at which point they should sell the value stocks in which they invested

their money. Investors can calculate their approximate profit using and compare it with their

expectation. It gives them rough idea whether the stock in which they are investing will fulfil their

expectation or not.

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4.4 Growth Picks

For selecting growth picks we consider overvalued stocks only. Then we calculate PEG ratio for

each stock. If PEG ratio is below 1 then we take it as growth stock in our portfolio.

Table-4

Sr No. Over Valued P/E

EPS 2015

EPS 2016 EPS growth PEG

Growth Pick (peg < 1)

1 Sun Pharma 39.11 26.50 24.23 -856.60% -4.565704846

2 Dr Reddys Labs 40.80 98.60 79.42 -1945.23% -2.097638077

3 GlaxoSmithKline 78.43 55.7 44.3 -2046.68% -3.832063384

4 Natco Pharma 57.60 46.17 10.24 -7782.11% -0.740129081

5 Abbott India 36.95 107.75 122.18 1339.21% 2.758811341

6 Strides Shasun 54.78 89.36 19.50 -7817.82% -0.700733482

7 Pfizer 38.22 15.26 48.70 21913.50% 0.174407041 Buy

8 Ipca Labs 64.79 20.29 7.25 -6426.81% -1.008168765

So, from PEG ratio calculation in above table we can see that for Pfizer PEG is below one so

ideally Pfizer should be selected as growth pick. But Natco Pharma has negative P/E hence it is

discarded. While stock of Abbott India have PEG more than 1 hence not considered in our

growth pick portfolio.

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4.5 Ranking of stocks in portfolio

After selecting value picks and growth picks we will rank them based on four parameters ie.

Valuations, profit margin, return on equity and P/E ratio. As ranking is based on P/E ratio lesser

the P/E ratio highest is the rank, higher the P/E ratio lowest is the rank.

Table-5

Rank Company Name P/E LTPT No. of Share Allocation of Fund

1 Torrent Pharma 12.78 1352.8 16800 22,727,272

2 Alembic Pharma 14.74 545.45 37500 20,454,540

3 Glen mark 14.9 791.55 22970 18,181,818

4 Piramal Enter 22.68 1400.95 11356 15,909,091

5 Lupin 23.06 1532.95 8896 13,636,364

6 Cipla 28.09 501.3 22668 11,363,637

7 Wockhardt 31.22 914.1 9945 9,090,910

8 Sanofi India 30.28 4271 1596 6,818,183

9 Ajanta Pharma 31.53 1516 2998 4,545,456

10 Pfizer 38.22 1867.15 1217 2,272,729

AUM 125,000,000

Torrent Pharmaceutical is ranked first since it has lowest P/E ratio i.e. 12.78 as amongst all whereas

Pfizer is ranked last since it has highest P/E ratio i.e. 38.22 as. So from this ranking of stocks we

understand priority in which we should allocate fund for stocks in our portfolio.

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4.6 Sectorial Mutual Fund

After ranking stocks, we need to prepare sectorial mutual fund. For this we assumed Asset under

management (AUM) is 125000000 crore rupees and we created 12.5 crore number of units. Then,

Net asset value (NAV) will be AUM/Number of units=INR 10. Then we allocated INR 125000000

Crore based on the total points we obtained for each stock in ranking section table.

Table-6

Rank Stock in Portfolio

Amount in Rs

allocated on

24-6-16

CMP on

24-6-16

No of

shares

CMP on

29-6-16

AUM on

29-6-16

CMP on

05-7-16

AUM on

05-7-16

1 Torrent Pharma 22,727,272 1352.8 16800 1343.4 22569120 1398.65 23497320

2 Alembic Pharma 20,454,540 545.45 37500 547.95 20548125 578.1 21678750

3 Glen mark 18,181,818 791.55 22970 792.3 18199131 824.9 18947953

4 Piramal Enter 15,909,091 1400.95 11356 1399.7 15894993.2 1506.85 17111788.6

5 Lupin 13,636,364 1532.95 8896 1532.9 13636678.4 1562.9 13903558.4

6 Cipla 11,363,637 501.3 22668 502.45 11389536.6 507 11492676

7 Wockhardt 9,090,910 914.1 9945 914.85 9098183.25 956.4 9511398

8 Sanofi India 6,818,183 4271 1596 4295 6854820 4662.95 7442068.2

9 Ajanta Pharma 4,545,456 1516 2998 1513.05 4536123.9 1586.2 4755427.6

10 Pfizer 2,272,729 1867.15 1217 1874.2 2280901.4 1935.25 2355199.25

AUM 125,000,000 125007612.8 130696139.1

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TECHNICAL ANALYSIS

Despite all the fancy and exotic tools, it employs, technical analysis really just studies supply and

demand in a market in an attempt to determine what direction, or trend, will continue in the future.

In other words, technical analysis attempts to understand the emotions in the market by studying

the market itself, as opposed to its components. If you understand the benefits and limitations of

technical analysis, it can give you a new set of tools or skills that will enable you to be a better

trader or investor.

Technical analysts seek to identify price patterns and trends in financial markets and attempt to

exploit those patterns. While technicians use various methods and tools, the study of price charts

is primary. Technicians especially search for archetypal patterns, such as the well-known head and

shoulders or double top reversal patterns, study indicators such as moving averages, and look for

forms such as lines of support, resistance, channels, and more obscure formations such as flags,

pennants, balance days and cup and handle patterns.

Technical analysts also extensively use indicators, which are typically mathematica l

transformations of price or volume. These indicators are used to help determine whether an asset

is trending, and if it is, its price direction.

Technicians seek to forecast price movements such that large gains from successful trades exceed

more numerous but smaller losing trades, producing positive returns in the long run through proper

risk control and money management.

Technical Analysis is of two types:

1. Short Term Analysis: Based on candle sticks.

2. Long Term Analysis: Based on line graph.

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Short Term Analysis

Originating in Japan over 300 years ago, candlestick charts have become quite popular in recent years. For a candlestick chart, the open, high, low and close are all required. A daily candlestick

is based on the open price, the intraday high and low, and the close.

White (green) candlesticks form when the close is higher than the open and black (red) candlesticks

form when the close is lower than the open. The white and black portion formed from the open and close is called the body (white body or black body). The lines above and below are called shadows and represent the high and low.

Doji

Doji are important candlesticks that provide information on their own and also feature in a number

of important patterns. Doji form when a security's open and close are virtually equal. The length of the upper and lower shadows can vary and the resulting candlestick looks like a cross, inverted

cross or plus sign. Alone, doji are neutral patterns. Any bullish or bearish bias is based on preceding price action and future confirmation. The word "Doji" refers to both the singular and plural form.

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The Hanging Man

The hanging man is a bearish signal that appears in an uptrend and warns of a potential trend

reversal. The candlestick pattern is called the hanging man because the candlestick resembles a hanging man with dangling legs. The long lower shadow of the hanging man is generally a bullish

signal, indicating that demand for the underlying security forced the price into the upper third of the price range for that period. For this reason, confirmation of a trend reversal is should be sought. At the very least, the candlestick following the hanging man should close below the real body of

the hanging man. Confirmation may also The hanging man and hammer patterns are trend reversal patterns that consist of the same type of

candlestick, which are called umbrella lines because of their shape. In other words, both the hanging man and the hammer pattern have the same shape, though the one is bearish while the other is relatively bullish. What distinguishes the two is the nature of the trend that they appear in.

If the umbrella line appears in an uptrend then it is known as the hanging man pattern, and if it appears in a downtrend, then it is known as the hammer pattern. Both are a single candles tick

pattern in which the candlestick consists of a real body that is located at the top of the candlestick with little or no upper shadow and a relatively long lower shadow, which should be at least twice the length of the real body. The color of the hanging man or hammer candlestick is not important.

The Hammer

The Japanese name for the hammer pattern is takuri, which means testing the water for its depth. The hammer pattern is quite similar in appearance to the hanging man pattern but it occurs in a downtrend and is a bullish signal that warns of a possible trend reversal. The candlestick is called

a hammer because it hammers out a base at the bottom of the downtrend. The long lower shadow of the hammer is a bullish signal regardless of the color of the candlestick's real body. It indicates

that the underlying sold off sharply but demand returned, forcing the price back up to close at or near the high for that period.

The Inverted Hammer

The inverted hammer and shooting star look exactly alike, but have different implications based

on previous price action. Both candlesticks have small real bodies (black or white), long upper shadows and small or non-existent lower shadows. These candlesticks mark potential trend reversals, but require confirmation before action.

The Shooting Star

The shooting star is a bearish reversal pattern that forms after an advance and in the star position, hence its name. A shooting star can mark a potential trend reversal or resistance level. The candlestick forms when prices gap higher on the open, advance during the session and close well

off their highs. The resulting candlestick has a long upper shadow and small black or white body. To indicate a substantial reversal, the upper shadow should relatively long and at least 2 times

the length of the body. Bearish confirmation is required after the shooting star and can take the form of a gap down or long black candlestick on heavy volume.

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The inverted hammer looks exactly like a shooting star, but forms after a decline or downtrend. Inverted hammers represent a potential trend reversal or support levels. After a decline, the long

upper shadow indicates buying pressure during the session. However, the bulls were not able to sustain this buying pressure and prices closed well off of their highs to create the long upper

shadow. Because of this failure, bullish confirmation is required before action. An inverted hammer followed by a gap up or long white candlestick with heavy volume could act as bullish confirmation.

Now let us see the candlestick pattern for the stocks in our portfolio and observe whether these

candlesticks are there in this pattern or not.

The resulting candlestick looks like a square lollipop with a long stick. If this candlestick

forms during an advance, then it is called a Hanging Man. After hanging man there is a white

candle hence the trend changes.

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The graph shows Doji. Doji form when a security's open and close are virtually equal. The

length of the upper and lower shadows can vary, and the resulting candlestick looks like,

either, a cross, inverted cross, or plus sign. In case of Cipla after Doji trend changes but in

Pfizer trend doesn’t change as the same trend is followed.

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The resulting candlestick looks like a square lollipop with a long stick. If this candlestick forms

during an advance, then it is called a Hanging Man. After hanging man there is a white candle

hence the trend changes.

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In the graph of Lupin it shows Inverted Hammer. It shows one-day bullish reversal pattern. In a

downtrend, the open is lower, and then it trades higher, but closes near its open, therefore looking

like an inverted lollipop. After inverted hammer the trend remains same. .

The resulting candlestick looks like a square lollipop with a long stick. If this candlestick forms

during an advance, then it is called a Hanging Man. After hanging man there is a white candle hence

the trend changes.

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The graph shows Doji as well as Shooting Star.

Doji form when a security's open and close are virtually equal. The length of the upper and lower shadows can vary, and the resulting candlestick looks like, either, a cross, inverted cross, or plus sign. In case of Sanofi after Doji the trend changes.

The shooting star is a bearish reversal pattern that forms after an advance and in the star position, hence its name. A shooting star can mark a potential trend reversal or resistance

level. Before Shooting Star there is a black candle and after Shooting Star there is white candle hence the trend changes.

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The graph shows Doji. Doji form when a security's open and close are virtually equal. The length

of the upper and lower shadows can vary, and the resulting candlestick looks like, either, a cross, inverted cross, or plus sign. In both the cases after Doji trend changes.

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In the graph of Torrent Pharam it shows Inverted Hammer. It shows one-day bullish reversal

pattern. In a downtrend, the open is lower, and then it trades higher, but closes near its open,

therefore looking like an inverted lollipop. After inverted hammer there is white candle stick hence

the trend changes.

The graph shows Doji. Doji form when a security's open and close are virtually equal. In case of

Piramal Enter after Doji trend changes.

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Long Term Analysis

In technical analysis we analyze trend of stock price for last 1 year and look for patterns which

will help us to understand present trend of stock and as per trend we can take position buy or sell.

Basically it gives us idea about business cycle phase.

Rounding Bottom (Reversal) The rounding bottom is a long-term reversal pattern that is best suited for weekly charts. It is also referred to as a saucer bottom, and represents a long consolidation period that turns from a bearish

bias to a bullish bias.

Cup with Handle The Cup with Handle is a bullish continuation pattern that marks a consolidation period followed

by a breakout. As its name implies, there are two parts to the pattern: the cup and the handle. The cup forms after an advance and looks like a bowl or rounding bottom. As the cup is completed, a trading range develops on the right hand side and the handle is formed. A subsequent breakout

from the handle's trading range signals a continuation of the prior advance.

Bump and Run Reversal (BARR)

The Bump and Run Reversal pattern can be applied to daily, weekly or monthly charts. As stated

above, the pattern is designed to identify speculative advances that are unsustainable for a long

period. Because prices rise very fast to form the left side of the bump, the subsequent decline can

be just as ferocious.

Double Top (Reversal) The double top is a major reversal pattern. As its name implies, the pattern is made up of two consecutive peaks that are roughly equal, with a moderate trough in between. While the double

top formation may seem straightforward, technicians should take proper steps to avoid deceptive double tops. The peaks should be separated by about a month. If the peaks are too close, they could just represent normal resistance rather than a lasting change in the supply/demand picture.

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Triple Top (Reversal)

Triple top is a reversal pattern made up of three equal highs followed by a break below support.

In contrast to the triple bottom, triple tops usually form over a shorter time frame and typically

range from 3 to 6 months. Generally speaking, bottoms take longer to form than tops.

Triple Bottom (Reversal) The triple bottom is a reversal pattern made up of three equal lows followed by a breakout above

resistance. While this pattern can form over just a few months, it is usually a long-term pattern that covers many months. Because of its long-term nature, weekly charts can be best suited for analysis.

Head and Shoulders (Reversal) A head and shoulders reversal pattern forms after an uptrend, and its completion marks a trend reversal. The pattern contains three successive peaks with the middle peak (head) being the highest

and the two outside peaks (shoulders) being low and roughly equal. The reaction lows of each peak can be connected to form support, or a neckline.

Here are the patterns for each stock in our portfolio.

Ajanta Pharma shows the Up- trend as it is Bump and Run Reversal (Reversal) BARR

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As in above graph point between 1 and 2 is called as prig hence it is Head & Shoulders Bottom.

The above graph represents a long consolidation period that turns from a bearish bias to a bullish

bias. Hence it is Rounding Bottom (Reversal).

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As the above graph shows a side way stock that forms after an extended uptrend hence it is Double

Tap (Reversal).

Above graph shows variation of rounding bottom. Hence it is Cup with Handle a bullish continuation

pattern that marks a consolidation period followed by a breakout.

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As the above graph shows long consolidation period that turns from a bearish bias to a bullish

bias. Hence it is Rounding Bottom (Reversal).

As the above graph shows a side way stock that forms after an extended uptrend hence it is Double

Tap (Reversal).

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As in above graph point shows the reaction lows of each peak can be connected to form support, or a neckline. Hence it is Head & Shoulders (Reversal).

As in above graph shows trend of stocks when it goes down buy the stock and as it reach at

higher trend sell the stock.

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As the above graph shows the Up- trend as it is Bump and Run Reversal (Reversal) BARR

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4.7 Mutual fund with diverse sectors

In our team we have allotted different sectors for which each team member has selected different

stocks for their sectors and allotted fund as per ranking. Then we concatenated stocks from all

sectors and created mutual fund. Then we have observed performance of mutual fund.

Sectoral Mutual Fund

Sr No.

Sectors Ranks stock pick CMP No. of shares

Rs alloted initially

Amount (Cr.)

1 AUTO Sector

1 Hero Motocorp 3,185.80

9,809.00

31,249,512.20

125,000,020.55

2 Bajaj Auto 2,675.90

10,010.00

26,785,759.00

3 Maruti Suzuki 4,170.95

5,351.00

22,318,753.45

4 Ashok Leyland 98.85

180,752.00

17,867,335.20

5 Amara Raja Batt 868.35

15,424.00

13,393,430.40

6 Exide Ind 168.45

52,974.00

8,923,470.30

7 WABCO India 5,840.00

764.00

4,461,760.00

2 Private Bank

Sector

1 Axis Bank

541.45 51,302.00

27,777,467.90

125,000,038.75

2 DCB Bank

97.20 250,057.00

24,305,540.40

3 City Union Bank

116.40 178,981.00

20,833,388.40

4 Yes Bank

1,117.50 15,536.00

17,361,480.00

5 Karur Vysya Bank

496.40 27,979.00

13,888,775.60

6 Lakshmi Vilas

98.95 105,272.00

10,416,664.40

7 South Indian Bank

19.55 355,215.00

6,944,453.25

8 Karnataka Bank

140.80 24,661.00

3,472,268.80

3 IT Sector 1 Wipro

555.60

112,491.00

62,499,999.60

125,000,103.20

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2 MphasiS

580.25

71,807.00

41,666,011.75

3 Cyient 491.15

42,419.00

20,834,091.85

4 Tires Sector

1 Tvs srichakra 2,357.00

8,485.00

19,999,145.00

124,999,987.90

2 MRF 33,656.65

594.00

19,992,050.10

3 CEAT 863.15

23,170.00

19,999,185.50

4 PTL enterprises 125.50

129,480.00

16,249,740.00

5 Apollo tyres 154.75

105,000.00

16,248,750.00

6 Balkrishna Industries

673.00

24,150.00

16,252,950.00

7 Jk tyre and Industries

90.05

180,546.00

16,258,167.30

5 Oil & Gas

Sector

1 RIL 972.00

51,441.00

50,000,652.00

124,999,730.00

2 IOCL 1,019.60

36,779.00

37,499,868.40

3 BPCL 1,089.25

22,951.00

24,999,376.75

4 HPCL 457.35

27,331.00

12,499,832.85

6 Real Estate

Sector

1 Marathon Realty 218.05

95,544.00

20,833,369.20

124,999,863.35

2 Sunteck Realty 229.55

82,506.00

18,939,252.30

3 Pnc Infratech 558.65

30,512.00

17,045,528.80

4 Brigade Ent 157.15

96,414.00

15,151,460.10

5 HDIL 99.35

133,443.00

13,257,562.05

6 Obroi Realty 270.10

42,072.00

11,363,647.20

7 DLF 143.65

65,922.00

9,469,695.30

8 Hubtow 98.60

76,833.00

7,575,733.80

9 Phoenix Mills 345.00

16,469.00

5,681,805.00

10 Vascon engineer 32.40

116,910.00

3,787,884.00

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11 Indiabulls Rear 88.90

21,304.00

1,893,925.60

7 Pharma Sector

1 Torrent Pharma 1,352.80

16,800.00

22,727,040.00

124,999,935.90

2 Alembic 545.45

37,500.00

20,454,375.00

3 Glenmark 791.55

22,971.00

18,182,695.05

4 Piramal 1,400.95

11,356.00

15,909,188.20

5 Lupin 1,532.95

8,896.00

13,637,123.20

6 Cipla 501.30

22,668.00

11,363,468.40

7 Wockhardt 914.10

9,945.00

9,090,724.50

8 Sanofi India 4,271.00

1,596.00

6,816,516.00

9 Ajanta 1,516.00

2,999.00

4,546,484.00

10 Pfizer 1,867.15

1,217.00

2,272,321.55

8 Consumer Durables

1 Whirlpool 823.00

101,256.00

83,333,688.00

124,999,752.00

2 Blue Star 438.00

95,128.00

41,666,064.00

9 Cash In Hand 568.35

1,000,000,000.00

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CHAPTER –5

CONCLUSION

Equity research is important for every investor in order to do wise investment. Relative valuation

model is simplest method for fundamental analysis. Also, one can use long term and short term

technical analysis along with fundamental analysis. Calculating long term target price investor can

achieve maximum profit and they also get an idea for how much period they should hold the stock.

Sectoral mutual fund of power sector and mutual fund consisting of diverse sectors will give idea

about how the mutual funds NAV are calculated and their performance is analyzed with respect to

market. If mutual fund is outperforming market, it indicates that stocks selected in portfolio are

good.

From this report we can conclude that by doing proper analysis of the stock and then investing in

it would minimize the risk involved in losing money in stocks. After all this analysis an investor

can lose money because at last the market behavior i.e. whether it is bullish or bearish depends on

the buying and selling of the stocks. At the end I want to conclude this project again by saying this

that by doing this analysis we would reduce risk in stock market it does not guarantee us that we

will not lose money.

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CHAPTER –6

RECOMMENDATION

As per my recommendation I will suggest peoples should invest in stock market after studying the

market, as it will be a secondary source of income along with their primary income. While

investing every investor must have a diversified portfolio so that he get good returns.

Stock market is place where we can earn lots of money if we invest smartly. We should always

invest after doing self research rather than investing blindly as someone else has invested in that

particular Stock.

The last and the one of the most important suggestion while playing with stocks is keep

emotions aside and are realistic and invest it in for long term rather than short term. So one should

have a high level of patience while dealing with stock. We should look after the stocks as our child

which will give us the return in future and not as soon as we bought it.

STOCK MARKET IS SUBJECTED TO HIGH RISK SO PEOPLE WITH WEAKER

HEART DON’T EVEN TRY TO DEAL WITH IT AND PEOPLE WHO LOVE TO TAKE

RISK IN LIFE IT’S THE BEST WAY OF EARNING MONEY LEGALLY

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CHAPTER –7

LIMITATIONS

1. The study is limited only to pharmaceutical sector and only large cap companies.

2. I have used only 2 technical tools to predict the movement scripts.

3. Fundamental Analysis is used to analyze only financial performance of the companies.

4. Only Technical Analysis is used to predict the stock prices of the companies.

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CHAPTER –8

BIBLIOGRAPHY

Websites

www.birlasunlife.com

economictimes.indiatimes.com

www.equitymaster.com

www.torrentpharma.com

www.ibef.org

www.moneycontrol.com

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Financial Tear Sheet

Corporate profile:

Torrent Pharma is a flagship company of Torrent Group, is ranked amongst the top pharma

companies with a market cap of over Rs. 20000 cr. It is a dominant player in the therapeutic areas

of cardiovascular (CV) and central nervous system (CNS) and has achieved significant presence

in gastro-intestinal, diabetology, anti-infective and pain management segments. It has also forayed

into the oncology and nephrology segments while also strengthening its focus on gynecology and

nutraceuticals segments. Torrent Pharma’s competitive advantage stems from its world-class

manufacturing facilities located at Indrad and Dahej in Gujarat, Baddi in Himachal Pradesh and

Sikkim in North East, advanced R&D capabilities, extensive domestic network and a widespread

global presence over 40 countries with over 1200 product registrations.

Stock Performance:

Exchange: NSE

Price: INR 1415.3

Change: INR-26.60 (-1.85%)

Volume: 122162

52 Week Low/High: INR 1190.00/1720.00

Market Cap: 239545

EPS: 106.6

PE Ratio: 13.3

Shares Outstanding: 169.22 Crore INR

(Date as on 15/07/2016 4:16p.m. IST)

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Events:

The Award’ is conferred upon two best employees, from across the Group, for their excellent

performance. Every year the theme of the event is based on his philosophy that emphasis on the

concern for the society.

Management Team:

Samir Mehta: CEO

Ashok Modi: CFO & Executive Director

Ashish Nanda: Director

Ownership structure: % of Share holding

Indian Promoters: 71.5%

Foreign collaborators: 0.0%

Indian institution/Mutual Fund: 7.0%

FIIs: 12.6%

ADR/ GDR: 0.0%

Free float: 8.8%

Financial Highlights:

Particulars 2014-15 2013-14 2012-13 2011-12 2010-11

SALES, PROFIT & DIVIDEND

Revenue 4653 4185 3211 2696 226

EBDITA 1291 962 702 512 417

EBIT 1100 875 619 431 355

Profit before Exceptional Items & Tax (PBT) 940 844 619 424 342

Profit after Tax & Minority Interest (PAT) 751 664 433 284 270

Dividend (Amount) 190 169 195 72 68

Total Dividend Per Share (RS) 11.25 10 23 8.5 8

Special Dividend Per Share (RS) - - 10 - -

Normal Dividend Per Share (RS) 11.25 10 13 8.5 8

Normal Dividend Per Share (RS)- Adjusted for Bonus 11.25 10 6.5 4.25 4

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