Chirayu Report

A
REPORT
on
Fundamental analysis on Pharmaceutical sector
By
CHIRAYU JHALANI
PGFC1812
2018-2020 Batch
Submitted in partial fulfilment of the requirements of PGDM
Program at
Jaipuria Institute Of Management,
Jaipur
1
DECLARATION
I, CHIRAYU JHALANI, hereby declare that this project entitled, “FUNDAMENTAL AND
TECHNICAL ANALYSIS ON PHARMACEUTICAL SECTOR” with JMARATHON
ADIVISORY SERVICES PVT LTD. in HYDERABAD has been completed by me and it is
an original work. This report is being submitted for fulfilment the requirement of POST
GRADUATE DIPLOMA IN MANAGEMENT AS A SUMMER TRAINING PROJECT, at
JAIPURIA INSTITUTE OF MANAGEMENT, JAIPUR.
It has never been submitted nor been published elsewhere.
(Signature)
CHIRAYU JHALANI
DATE: 17/07/2019
PLACE: JAIPUR
i
CERTIFICATE OF ORIGINALITY
Date: _______________
To Whomsoever It May Concern
This is to certify that the Summer Internship Project Report titled “Fundamental and Technical
analysis on Pharmaceutical sector” submitted by Mr. Chirayu Jhalani, represents an original
work done by the student mentioned herein and has been submitted in partial fulfilment of the
requirements of the PGDM Program (2018-2020 Batch).
(Name and signature of faculty guide)
ii
CERTIFICATE FROM ORGANIZATION
iii
ACKNOWLEDGEMENT
The satisfaction and euphoria after the successful completion of any task would be incomplete
without the mention of the people who made it possible, whose constant guidelines, support
and encouragement crown all the success.
I take this opportunity to express my profound gratitude to my Industry Mentor Miss

Deepasana Mohanty (Business Development Head) of Jmarathon for giving me an opportunity
to do a project at their esteemed organization and for extending his valuable guidance
throughout the project by providing enough information in spite of his busy schedule.
I take this opportunity to express my sincere thanks to my mentor Prof (Dr) Shubha Johari of
Jaipuria Institute of Management, Jaipur for her immense support and permitting me to do my
internship.
My deepest thanks are owed to my parents, family members, friends and all those who
supported me in making this project report effective and informative in innumerable ways to
which I own off all my success.
iv
Contents
Executive Summary ................................................................................................................... 1
Chapter 1 (Introduction) ............................................................................................................ 2
Chapter 2 (Organisation Overview) ........................................................................................... 5
Chapter 3 (Industry Analysis) .................................................................................................. 13
Chapter 4 (Research Methodology) ......................................................................................... 18
Chapter 5 ( Results and Discussion) ........................................................................................ 21
Chapter 6 (Findings and Conclusion) ...................................................................................... 47
Chapter 7 (Learning from SIP) ................................................................................................ 48
References ................................................................................................................................ 52
Executive Summary
In this project/report, the attempt was made to analyse the Indian pharmaceutical sector for
investment purpose. For analysing the pharma sector stocks I have taken Nifty pharma index
stocks into consideration. I have selected three companies from the nifty pharma index for
analysing that is Sun Pharmaceuticals, Lupin, Cipla on the basis of popularity of these brands
in india in pharmaceutical sector. The five year monthly price of the stocks has been collected
for the analysis. Then changes in return over monthly has been calculated for getting the returns
over the period of 60 months. Also Nifty pharma index data been calculated for the comparison
with the pharma stocks.
To understand the pharma stocks for investment, horizontal and vertical analysis of balance
sheet has been done for comparative analysis. The alpha and beta has been calculated for the
returns using excel. Then t-test has been conducted for comparing the returns of each company
with the nifty pharma index. Anova test is also used for comparing three companies stock
returns and nifty pharma index.
1
Chapter 1 (Introduction)
India is the largest provider of popular pills globally. Indian pharmaceutical area enterprise
components over 50 consistent with cent of world call for for numerous vaccines, forty in step
with cent of customary call for within the US and 25 in line with cent of all remedy in united
kingdom.
India enjoys an essential position inside the worldwide prescribed drugs region. The u . s . a .
also has a massive pool of scientists and engineers who have the capacity to steer the industry
ahead to a fair better level. presently over eighty in keeping with cent of the antiretroviral
tablets used globally to combat AIDS (obtained Immune Deficiency Syndrome) are provided
by using Indian pharmaceutical companies.
Market Size
The pharmaceutical region became worth US$ 33 billion in 2017. The USA pharmaceutical
industry is expected to expand at a CAGR of twenty-two.four per cent over 2015–20 to attain
US$ 55 billion. India’s pharmaceutical exports stood at US$ 17.27 billion in FY18 and have
reached US$ 15.52 billion in FY19 (up to January 2019). Pharmaceutical exports encompass
bulk drugs, intermediates, drug formulations, biologicals, Ayush & herbal products and
surgicals.
India’s home pharmaceutical marketplace turnover reached Rs 129,015 crore (US$ 18.12
billion) in 2018, developing 9.4% year on year (in Rs) from Rs 116,389 crore (US$ 17.87
billion) in 2017.
Indian corporations acquired 304 Abbreviated New Drug utility (ANDA) approvals from the
United States Food and Drug administration (USFDA) in 2017. The country accounts for
around 30% (by volume) and approximately 10% within the US$ 70-80 billion US generics
marketplace.
India's biotechnology industry comprising bio-prescription drugs, bio-offerings, bio-

agriculture, bio-enterprise and bioinformatics is predicted develop at a median increase price
of around 30 in line with cent a year and reach US$ 100 billion by way of 2025.
2
Investments and current developments
The Union cabinet has given its nod for the modification of the existing foreign Direct funding
(FDI) policy inside the pharmaceutical zone if you want to allow FDI up to 100% consistent
below the automatic path for production of clinical devices issue to positive conditions.
The medicine and prescribed drugs zone attracted cumulative FDI inflows well worth US$
15.93 billion between April 2000 and December 2018, in keeping with statistics released by
using the branch for merchandising of enterprise and inner trade (DPIIT).
Recent tendencies/investments inside the Indian pharmaceutical area are as follows:
In February 2019, the Indian pharmaceutical market grew with the aid of 10% year on year.
Between Jul-Sep 2018, Indian pharma zone witnessed 39 PE funding deals well worth US$
217 million.
Funding (as % of income) in studies & development through Indian pharma groups* improved
from 5.3% in line with cent in FY12 to 8.5 per cent in FY18.
In 2017, Indian pharmaceutical area witnessed 46 merger & acquisition (M&A) offers well
worth US$ 1.forty seven billion
The exports of Indian pharmaceutical industry to the usa gets a boost, as branded capsules well
worth US$ fifty five billion turns into off-patent for the duration of 2017-2019.
Government initiatives
Some of the initiatives taken by the government to promote the pharmaceutical sector in India
are as follows:
The allocation to the Ministry of health and circle of relatives Welfare has multiplied by
thirteen.1 according to cent to Rs sixty one,398 crore (US$ 8.ninety eight billion) in Union
finances 2019-20.
In October 2018, the Uttar Pradesh authorities introduced that it will installation six pharma
parks inside the country and has acquired investment commitments of more than Rs five,000-
6,000 crore (US$ 712-855 million) for the identical.
3
The country wide health safety Scheme is largest government funded healthcare programme
within the global, that's predicted to advantage one hundred million poor households in the usa
by means of imparting a cover of as much as Rs 5 lakh (US$ 7,723.2) in line with circle of
relatives consistent with 12 months for secondary and tertiary care hospitalisation. The
programme was introduced in Union finances 2018-19.
In March 2018, the Drug Controller widespread of India (DCGI) introduced its plans to begin
a unmarried-window facility to offer is of the same opinion, approvals and different statistics.
The circulate is aimed toward giving a push to the Make in India initiative.
The authorities of India is making plans to installation an digital platform to adjust online
pharmacies below a new policy, for you to stop any misuse because of easy availability.
The government of India unveiled 'Pharma imaginative and prescient 2020' aimed at making
India a worldwide leader in give up-to-quit drug manufacture. Approval time for brand new
centers has been reduced to reinforce investments.
The government added mechanisms such as the Drug charge manipulate Order and the national
Pharmaceutical Pricing Authority to address the problem of affordability and availability of
drugs.
Road Ahead
Medication spending in India is projected to develop 9-12 % over the following five years, in
India to be one of the top 10 countries in phrases of medicine spending.
Going ahead, higher boom in domestic sales would additionally depend on the capacity of
corporations to align their product portfolio towards chronic healing procedures for diseases
which includes such as cardiovascular, anti-diabetes, anti-depressants and anti-cancers that are
on the upward push.
The Indian government has taken many steps to reduce expenses and bring down healthcare
prices. speedy creation of generic drugs into the marketplace has remained in attention and is
predicted to gain the Indian pharmaceutical groups. further, the thrust on rural fitness
programmes, lifesaving capsules and preventive vaccines additionally augurs nicely for the
pharmaceutical businesses.
4
Chapter 2 (Organisation Overview)
The Company name is J Marathon Advisory Services Private Limited. It has Three Branches,
one is in Bangalore, second is in Hyderabad and third one is in Chennai. I was in the Hyderabad
Branch and its address is 1-8-343, MNJ Palace, 2nd Floor, Indian Airlines Colony, Patigodda,
Begumpet, Secunderabad, Telangana – 500003. My mentor was Mrs Deepasana Mohanty, she
was the Business Head and Portfolio Manager of our company.
MISSION
To develop meaningful & life long relationship with the clients by providing them the highest
quality services & address every aspect of their financial related issues.
OUR VISION
To be the most trusted & respected professional services firm recognized by our clients
delivering excellent services, which is value for money & more than their expectations.
OUR VALUES
Integrity
Pursuit of excellence
Accountability, Collaboration & Passion.
About the company
J Marathon is a boutique advisory firm based on the principles of independence, transparency

and client advocacy which provides services to its clients in an era of constant changing and
volatile financial Market, where investors need Qualified /Trained and an unbiased
professional to assist them in achieving their short term and long term Investment goal. It has
experience of over 9 years in the financial services industry.
The services offered includes financial planning, intense training, overall wealth management,
and strategic investment advice to individuals, entrepreneurs, and families who seek unbiased,
5
intelligent advice and counsel. They offer technology based services for their clients to
effectively monitor their portfolio and help them in reaching their financial goals. They focus
at being the most reliable, prompt and efficient provider of financial services.
1. Customer Segments
How to identify customer segments.
a. The company is offering a service, exclusively for customers who are interested in
investing in the equity market and foreign exchange.
b. Company reaches customers through different distribution channels through social

media, newspaper advertisements and other channels which mainly focuses on
target customers i.e. Investors.
c. Customers are classified based on their Investment size.
2. Customer Relationship
The kind of relationship maintained by the organization with the customers
a. It is a kind of Personnel relationship which JMarathon maintains with their

customers.
b. The motivation of the organization to maintain customer relationship is
i. For Acquisition of customer
ii. For boosting their service.
c. Different types of relationships maintained by the organization with its

customers are
i. Personal assistance: JMarathon provides personal assistance for the new

customers who are in the initial stage of their investments and looking for the
advisory services.
6
ii. Dedicated personal assistance: JMarathon provides dedicated personal
assistance for their loyal customers/investors who invest huge amounts
through JMarathon.
3. Channels
The organization communicate with and reaches its value propositions to the customers. The
touch points between the company and its customers are
Chann
el
Types
Sales force
Direct
AFTER
Own Web sales
SALES
Post
purchase the
Ow DELIVERY
Indire AWARENESS PURCHASE customer
n Company deliver the
ct Sales force Customers to support will
Stor value proposition by
create purchase provided by
es understanding the
awareness of specific the sales
value of utility,
about the products& force, or
overcoming the
products and Services through
barriers of customer
services through online online or
perception and
through demo mode. through
pursuing positive
videos etc. financial
returns.
analyst who
are in charge
of their
portfolio
7
4. Key Resources: -
a. JMarathon (Hyderabad) is mostly run by the

Interns. The Permanent Staff is less in number
who provide training to the interns.
b. Self-Developed Training Video courses on stock

markets can be said as a competitive advantage
over their competitors.
5. Revenue stream: -
a. The firm gets its part of the revenue from the courses that they offer on stock market
which is sold online.
b. They also charge Commission on the Transactions made by the customer through the
firm which is a transaction revenue.
6. Value Propositions
a. Customized services for the according to risk taking nature of customer
b. Customized strategies for wealth management.
c. Understands customer financial goals.
d. Transparency through sharing respective login details to respective customers.
e. Financial advisory is trained over brief period of time in the live trading.
f. Performance of each financial advisory is analysed and the customer is accounts

are handed-over.
8
g. Financial goals are revised based on the customer requirement
h. Customers are educated through Instagram, WhatsApp.
i. Conveniently available to customers mobile and internet medium.
j. Services charges and minimum and more likely affordable by customers.
7. Key Partnerships
There are no partners in the business. It is registered under companies act.it is also registered
with NSE and BSE stock exchanges.
8. Key activities
a. Handling the portfolios and setting up guidelines.
b. Advise individuals on investment decisions.
c. Analysing Indian Stocks, commodity, Derivative, Currency and Global Forex Market.
d. Analysing based on Fundamentals and technical analysis with the available data in the
markets.
e. Assisting Research Calls for Long Term trading, Short Term Trading and Intraday
Trading.
9. Services Provided
a. Training and Development

Training and conducting workshops on Indian stock market and forex market provided
to individuals to create awareness and expand business. Practice on virtual platform
gives boost and confidence to individuals to develop interest in field of investment.
b. Online Stock Awareness Course
9
Only 2% of Indian population is investing in stocks and mutual funds which is very less
percentage. Jmarathon is providing an online course regarding Indian stock market and
forex market in order to increase the awareness in public.
c. Advisory Services
To provide advisory services like to manage portfolios. High networth investors gets
the advice from experienced and professional consultants here at Jmarathon.
Financial Market
Financial management is one of the prime areas of business. Therefore, its objectives must be
consistent with the objectives of business. The overall objective of financial management is to
provide maximum return to the owners of the business on their investment in the long- term as
well as in short term.
There are two objectives of an enterprise
1) Wealth Maximisation- It's the potential of organisation to growth in market price of the
share over time i.e. proprietor's capital.
2) Profit Maximisation- Earnings maximisation is the functionality of a business enterprise in

generating most output with minimum input. The main cause of an economic activity is to earn
profit. A business enterprise challenge operates specially for the motive of earnings. Earnings
is a tool to measure the performance of a business. Profit maximization is like the slender
approach, which focuses on maximizing the profit of the business concern.
Stock market refers to a marketplace in which the buying and selling of company stock, both
listed securities and unlisted securities takes area. It is distinct from stock exchange because it
includes all the countrywide stock exchanges of the India for example, we use the term, and
“the stock market was down today “or” the stock market bubble
Stock Exchanges are an organized marketplace, either agency or mutual organisation, wherein
individuals of the agency unite to acquire company stock or different securities. The individuals
may act either as sellers for his or her clients, or as principal for their very own accounts. Stock
exchanges additionally facilitates for the issue and redemption of securities and other financial
instruments together with the charge of profits and dividends. The report retaining is primary
however trade is connected to such physical location because modern-day markets are
10
automated. The trade on an exchange is simplest by means of contributors and Stock broker do
have a seat at the exchange.
The capital market is divided into segments:
a) Primary market b) Secondary market
Primary Market
Most corporations are generally started out privately by way of their promoters. But the
promoters’ capital and the borrowed capital from banks or economic establishments might not
be sufficient for strolling the enterprise over the long period. This is whilst corporate and the
government authorities looks on the primary market to raise long term finances by way of
issuing securities which includes debt or equity. These securities can be issued at face value,
at premium or at discount.
Face value: Face price is the original cost of the safety as shown inside the
certificate/instrument. Most equity shares have a face price of Rs. 10, Rs. 50, Rs. 100 or Rs.
1000 and do no longer have a great deal bearing on the real market price of the securities. While
issuing securities, they will be offered at a premium or discount.
Premium: When the security is obtained at a charge more than the face value is called as
premium
Discount: When the security is obtainable at a charge less than the face value is called as
discount.
Secondary market:
The secondary marketplace affords liquidity to the investors in the primary market. Today we
might now not put money into any financial instrument if there has been no medium to
liquidate. The secondary markets offer an efficient platform for buying and selling of those
securities first of all presented inside the primary market. Additionally, the investors who have
carried out for stocks in an IPO may or won't get allotment. In the event that they don ‘t then
they can usually buy the stocks (from time to time at a discount or at a premium) inside the
secondary market. Trading within the secondary market is completed through stock alternate.
11
The secondary market is an area wherein the consumers and dealers meet to exchange in shares
in an effective way.
The exchange performs the following functions:
• Provides buying and selling platform to investors and provide liquidity

• Facilitates list of securities
• Registers individuals - brokers, sub brokers
• Creates and puts in effect by way of-laws.
• Controls risk in securities transactions.
• Offers indices
Equity research is more often a way of analysing business enterprise’s financials, perform ratio
evaluation, forecast the financials (financial modelling and valuations) and explore scenarios
with a goal of making purchase/promote stock funding recommendation. Equity analyst shows
their studies and evaluation of their equity research reports.
Investors depend upon information to recognize where to put their money into, investors want
statistics to know whether they have to enter or exit a role, and company financiers (together
with bankers, non-public companies and so on.) need statistics to value businesses and take
part in proceedings. This information has to come from some place and as a result, there are
complete divisions within the economic establishments committed to studying the important
problems of firms and this department is called Equity Research.
12
Chapter 3 (Industry Analysis)
Our Company J Marathon Advisory Services Private Limited falls under the Independence
Financial Advisor Industry. The Reason being the Private Company and not listed on the Stock
Exchange and hence not open to Public. The Company mainly hire the Interns and make them
financial Literate by offering them the Internship for Indian Stock Market and Foreign
Exchange Market. So being working as an Independent Financial Advisory Company. The
SWOT analysis of its Industry is as Follows: -
Strength: Weakness:
1. Give decisions to clients and Free Counsel. 1. Advertisement and Branding.
2.New Business Model
2. Monetary Assets or Capital Imperative.
3. Wide Adequecy
3. NATO (Know Excessively, Think Excessively, No
4. Coordination one stop Focus Administration activity.)
5. Collaboration 4. Lack of Concern
6. Need Base Procedure/Prompt driven deals. 5. Flaunt Business Model.
SWOT of Financial
Advisory Industry
Threaths:-
Opportunities: 1. Organisation Rivalry
1. Union of Customer Portfolio. 2.External and Internal organisation rivalry.
2. Numerous Troubled Customer in the Market. 3. Survival
3. Enormous Pool of Individuals to enroll for the 4. Stricter Consistent Prerequisites from the Controller
Training Group.
5. Incremental Cost of working business with kind of
4. Opportune ideal time, correct individual, right Licenses or ceaseless training hours to look after
business condition, boundless salary potential. yearly.
Following are the explanation for the above SWOT analysis of Independent Financial Advisory
Industry and these are as Follows:
1) Strength: - The First strength which the industry takes as advantage is the Giving
Decision to Clients and Free counsel them. This is because of the fact the Business
Model which the companies working in the Industry Possess. If we carefully examine
the people, we can see that most of the people doesn’t have financial knowledge and
the irony is, all of them want to grow their money in order to satisfy their own needs,
wants and desires. This is the place where Financial Advisory company roles comes
into play. So this have been their strength in giving Financial advice to their client and
also offers them the independent Counselling, if needed by them so as to act as a
13
platform where they can identify the people strategies and kind of perception which
they have come and get a hold onto it. The Second Strength which this Industry possess
is that they have the kind of New Business Model. The reason, why their business model
is new or rather it would be appropriate to say that the unique concept on which they
work upon. The model is unique because these industries has a focus on identifying and
solving the financial planning problem of their respective client and also having the tie
ups with the different agency business make their business Model more soothing and
appropriate. The third strength which these companies under these industries enjoys or
have is that their Products and Services have Wider Acceptability. As it is no hard to
understand that more people, with all of them have no Financial Clarity makes their
business model more appropriate because with the advancement of the economy,
Peoples income are increasing and also the Country’s Inflation. So it becomes very
important for the public to keep their money and grow so as to feed their next
generations. The fact that, People have money, have various alternatives but, then, to
identify the best resource for the situation makes this industry more valuable assets.
The another strength which industry possess is the Coordination among the company
with one focus and that is on Managing and Administering the people portfolio and this
is because the organisation falling under these industries have the common process,
common goal and so is the advantage of each employee coordination as every
department is dependent on the other, so they need to work uniformly.
The Fourth and the Fifth strength of the industry which it holds is collaboration and this
is because of uniformity and the dependency on each other hold them intact and
motivate them to work under collaboration.
2) Weakness: - The weakness which these industries had is that they need to incur some
good cost on their advertisement and Branding. The second being the availability of the
Monetary Assets and also it requires huge capital and so follows the Problem of Capital
Constraint. The third weakness that is there is of the NATO and that is Learn
Excessively, Know Excessively and No activity. The fourth weakness being is that it
requires Discipline and most of the time it remained as the Problem prevalent in the
Industry. These all Reason of weakness are because of the Fact that, although the Job
seems to offer Rosy Picture, but it requires Expertise and prior to that the Capital which
is Must and the requirement is huge. Since the Job is solely based on the research, the
14
companies working under this, usually hold no activities for their employees and it
requires to have through Financial Knowledge and had to learn continuously.
3) Opportunities: - The Opportunities which are Lying ahead for the Industry is Union
of Customer Portfolio. Second being the Presence of Numerous Troubled Customers in
the Market. The third Being the Various Individual and Trainee want this Job so seeking
and Hiring interns and employee remains no that tough. And last but not the least is
Opportune ideal time, presence of correct individual, have good business condition and
also the industry have Boundless salary potential because of the Unique business model
and Huge Profit margin or Counselling Fee.
4) Threats: The First Being the presence Organisation Rivalry, both externally and
internally. Second being the Requirement of Stricter Consistent prerequisites. Third
being the presence of Incremental cost of working business due to the requirement of
License and Ceaseless training hours which need to be taken care of and had to be
looked after yearly. As the Substitute are many, these following threat prevailed
because of this one of the Reason.
Porter Five Forces Analysis of J Marathon Advisory Services Private Limited
1) Competition from Industry Rivals: - Rivalry inside the business is the most grounded
of Porter's five powers for J Marathon Advisory Services Private Limited. The
organization faces extraordinary challenge locally from the other noteworthy financial
firms like HSBC, Barclays, Stock Broking Houses, online Channels and many other
Private Competitors. One of the business components that increases the significance of
rivalry is the generally low exchanging costs that customers face, particularly in the
retail and business regions. J Marathon Advisory Services Private Limited manages
industry rivalry in three fundamental ways. It endeavours to separate itself in the
commercial centre basically based on its since quite a while ago, perceived legacy and
experience. It means to remain on the front line of offering client comfort and minimal
effort and bleeding edge administrations. It has a past since 2006 where it hires the
intern and make them trained in the financial services and in return draws out certain
15
benefits in the form of Advertising and Promotion of their products and services
through their interns and employees.
2) The Bargaining Power of Consumers: - Purchasers' general dealing power is a

significant factor affecting the business. Single purchasers, particularly in the retail
business, have generally small dealing force since the loss of any one record minimally
affects J Marathon advisory services private limited primary concern. Be that as it may,
in the total, the haggling intensity of customers is more prominent since the Company
can't bear to endure mass abandonment of Portfolios. Corporate and high net worth
individual (HNWI) customers have moderately more prominent dealing power since
the loss of sizable records and wellsprings of income can all the more considerably
influence the Company's productivity.
J Marathon advisory services private limited addresses the issue of client bartering
power fundamentally by stretching out alluring ideas to potential new customers. It
likewise ceaselessly attempts endeavours to get existing customers to open portfolios
and manages them decisively, which successfully contributes to their retention of their
clients and prevent them from switching back to others.
3) The Threat of Substitute Products: - The risk of substitute items has expanded in the
financial business, as organizations and other online channels outside the business have
started to offer specific money-related administrations that were generally just
accessible from financial firms. Instances of such substitute items incorporate
instalment preparing and offering similar products and services at low cost, for
example, Udemy, EDX, Coursera, and other famous YouTube Channels Like
Finnovation, Finology, Nitin Bhatia, etc. The interruption of these substitute
administrations has cost both J Marathon and the other Financial Advisory firm
extensive income. J Marathon has reacted with activities that incorporate a division
concentrating on educating and imparting the tactics and strategies through their well-
designed MOOC course at low cost and explanation through animated videos.
16
4) The Bargaining Power of Suppliers: - The two principle providers for a J marathon
are the retail investors, who supply the essential asset of capital who supply the asset
of work. Concerning investors, the circumstance is basically equivalent to that outlined
under the bartering intensity of shoppers. Retail investors, other than major corporate
or HNWI contributors, have moderately small dealing force yet taken in general, their
haggling power is impressive. J Marathon way to deal with managing this market
power is, once more, to work persistently to pull in new Interns and to expand the degree
to which existing contributors hold assets and access benefits through other financial
advisories firm. With respect to the dealing intensity of providers of work, singular
providers have small haggling force other than significant official representatives. J
Marathon must address its general dealing power by offering an alluring pay and
advantage bundles to hold the best representatives.
5) The Threat of New Entrant: - The risk of new participants as a huge power inside the
business is moderately little. Any organization endeavouring to contend straight
forwardly on a similar dimension with J Marathon or the other major Financial
Advisory firm would confront huge snags. The essential hindrances for potential new
participants are the enormous measure of capital required, the timeframe required to set
up a huge brand personality and the various and unwieldy government guidelines that
apply to the activity of firms and expertise. Later on, notwithstanding, J Marathon and
other significant Firms are probably going to confront expanding focused dangers in
the business emerging from real Financial advisory in creating economies.
17
Chapter 4 (Research Methodology)
Problem Statement
Equity research is the act of making an ex-ante evaluation of equity shares. The purpose of
which is to evaluate the investment worthiness of equity share & find out about appropriate
timing of investment in such shares. An important method of conducting equity research is
through fundamental analysis. Fundamental analysis is an analysis of various fundamental
factors likes economic aggregate, industrial indicators, financials related to companies. Under
fundamental research an investor or portfolio manager analyses several factors to have a fair
idea about the growth & development of the economy, industry and company as a whole to
forecast the future trend of market. Different equity shares are evaluated by applying
appropriate techniques. The aim of which is to find out undervalued shares or shares which are
likely to do better in future. Similarly, fundamental analysis can also be carried out at the time
of disinvestment also. Here portfolio manager is interested to identify the appropriate timings
for liquidating its investment in particular share.
Pharmaceutical market is one of the largest in India. It ranks 4th in world pertaining to sales.
The market capitalisation of pharmaceutical is 8.63% in BSE and 6.93% in NSE. Most of the
investor usually include pharma stocks in their portfolio. A study on fundamental analysis of
pharma stocks will be highly useful to such an investor for their investment strategy.
Literature Review
Khan and Zuberi (1999). Being taken into consideration as mattress-rock of Security Analysing
investment, Fundamental evaluation performs an exceptionally crucial function to analysts.
This is pinnacle-ranking and essential technique in share investment. For this reason, this could
be a reasonably strong base, on which we will make investment choices effectively. There are
approximately 90 % investors that uses fundamental analysis.
Warrant Edward Buffett, who made maximum of cash from investment. He is an exquisite
instance of a successful people of fundamental analysis. His analysis centered on the simplicity
of the business, the consistency of its working history, the
18
Splendour of its long-time period possibilities, the satisfactory of control, and the company’s
ability to create price (Banchuenvijit, 2008)
The primary aim of fundamental analysis is figuring out the weaknesses of the market at some
stage in the formation of market share price, through elaborating the amount of deviation of
the market price of stocks relative to the real-intrinsic value of stocks. Fundamental analysis
studies have involved testing the capability of essential alerts to expect both future earnings or
stocks returns. In addition, it assessments for other contextual elements along with the
economic system or industry which can affect the prediction of future earnings or stock returns
(Seng, 2011)
Richardson (2006), fundamental analysis is based upon building high quality estimates of the
parameters in the valuation, which may be written in the following three mathematically
equivalent forms: the discounted dividend version, the loose coin’s waft model, and the residual
profits model. Fundamental analysis entails the usage of present day and past economic
statements in conjunction with industry and financial facts in order to determine companies‟
intrinsic price and perceive mispriced securities (Kothari, 2011)
Galatian, Gerasimova and Bykovsky (2011) the factors may be analysed, which should be
taken into account on every step while carrying out the fundamental analysis of an organisation,
and also observe the ability of investor, who wants to create an attractive portfolio of stocks.
Kim and Doyoun (2010) became determine the intrinsic value by means of Discounted Cash
flow model and free cash flows of the firm have been projected and discounted to the present
value at the decent discount rate calculated through weighted average cost of capital. with the
aid of adding up discounted free cash flows, the firm value reckoned, and by using subtracting
debt amount, the value of equity portion become accrued. Via dividing the equity cost by the
number of outstanding share, the final intrinsic cost of each share determined. This paper
examines how well the firm-basis principle predicts the price.
Scope of the study:
1) The study will be conducted at Jmarathon Advisory Services Pvt. Ltd., Hyderabad
2) This study will give overview on pharmaceutical stocks.
19
3) This study consists of Industry-Company framework analysis with the following
aspects
• Company analysis consists of financial statement, analysis of financial
statements, Companies prospects, growth, and Management board of company.
4) Major three companies have taken into consideration: Sun Pharmaceuticals, Lupin,
Cipla
Objective of the study:
• To gain in-depth knowledge regarding fundamental analysis.

• To study the macro economic factors which directly or indirectly influence the
performance of selected pharma stocks.
• To analyse the prospects of pharmaceutical Industry through industry analysis.
• To conduct company analysis of selected pharmaceutical company stocks through its
financials.
• To suggest the investors an appropriate strategy based on study at Jmarathon Advisory
Services Pvt. Ltd., Hyderabad.
20
Chapter 5 ( Results and Discussion)
SUN PHARMACEUTICALS
Sun Pharmaceuticals is the largest pharmaceutical company in India and the fifth largest
specialty generic company in the world. It has capabilities across dosage forms like injectables,
sprays, ointments, creams, liquids, tablets and capsules. Its businesses include producing
generics, branded generics, speciality, over-the-counter (OTC) products, anti-retrovirals
(ARVs), Active Pharmaceutical Ingredients (APIs) and intermediates in the full range of
dosage forms. It also produces specialty APIs. US formulations contributed the most to
company’s US$ 4 billion sales in FY18 with a contribution of 34 per cent, followed by India
branded formulations at 31 per cent. In FY19, total income of the company reached Rs
22,645.95 crore (US$ 3.14 billion).
Company Website: www.sunpharma.com
• Leading pharma company in India in 2017 as per Moving Annual Turnover (MAT)
• World's fifth largest specialty generic pharmaceutical company
• Serves over 150 markets across the world
• More than 2,000 marketed products
• More than 40 manufacturing sites
Sun Pharma – Reaching People. Touching Lives.
2018 Sales of US$ 4 billion in FY18; Announced acquisition of US-based speciality

pharmaceutical company Avenue Therapeutics for US$ 215 million
21
2017 Agreement signed with National Institute of Virology, India to fight Zika, Chikungunya
and Dengue
2013 Became world’s fifth largest specialty generic pharmaceutical company with
acquisition of Ranbaxy
2000 Acquired Pradeep Drug Company
1997 First international merger with Caraco Pharmaceutical Laboratories, USA
1996 Sales network expanded to across 24 countries
1994 Launched IPO
1989 Launched gastroenterology products in India
1983 Established a portfolio of five psychiatry products
Sun Pharma Nifty Pharma

Date Price Returns Price Returns
Aug-14 855.25 100.00 10,082.30 100.00
Sep-14 857.25 0.23% 100.23 10,847.15 7.59% 107.59
Oct-14 845.4 -1.38% 98.85 10,874.75 0.25% 107.86
Nov-14 839.7 -0.67% 98.18 11,254.75 3.49% 111.63
Dec-14 826.55 -1.57% 96.64 10,949.80 -2.71% 108.60
Jan-15 917.75 11.03% 107.31 11,693.55 6.79% 115.98
Feb-15 911 -0.74% 106.52 11,798.65 0.90% 117.02
Mar-15 1,023.90 12.39% 119.72 12,844.80 8.87% 127.40
Apr-15 938.85 -8.31% 109.77 12,057.80 -6.13% 119.59
May-15 966.1 2.90% 112.96 12,511.75 3.76% 124.10
Jun-15 874.6 -9.47% 102.26 12,202.55 -2.47% 121.03
Jul-15 822.4 -5.97% 96.16 12,353.25 1.23% 122.52
Aug-15 898.95 9.31% 105.11 13,213.20 6.96% 131.05
Sep-15 868.4 -3.40% 101.54 12,918.75 -2.23% 128.13
Oct-15 889.55 2.44% 104.01 13,170.15 1.95% 130.63
Nov-15 729.65 -17.98% 85.31 11,492.90 -12.74% 113.99
22
Dec-15 820.15 12.40% 95.90 11,963.50 4.09% 118.66
Jan-16 872.95 6.44% 102.07 11,755.85 -1.74% 116.60
Feb-16 853.9 -2.18% 99.84 11,167.70 -5.00% 110.77
Mar-16 820 -3.97% 95.88 10,989.15 -1.60% 108.99
Apr-16 811.3 -1.06% 94.86 11,293.25 2.77% 112.01
May-16 762.75 -5.98% 89.18 10,995.45 -2.64% 109.06
Jun-16 763.1 0.05% 89.23 11,142.00 1.33% 110.51
Jul-16 829.95 8.76% 97.04 11,697.25 4.98% 116.02
Aug-16 775.65 -6.54% 90.69 11,489.15 -1.78% 113.95
Sep-16 742.7 -4.25% 86.84 11,461.00 -0.25% 113.67
Oct-16 748.1 0.73% 87.47 11,636.00 1.53% 115.41
Nov-16 709.8 -5.12% 82.99 11,080.05 -4.78% 109.90
Dec-16 630 -11.24% 73.66 10,267.00 -7.34% 101.83
Jan-17 631.5 0.24% 73.84 10,236.35 -0.30% 101.53
Feb-17 679 7.52% 79.39 10,585.15 3.41% 104.99
Mar-17 688.15 1.35% 80.46 10,411.15 -1.64% 103.26
Apr-17 641.95 -6.71% 75.06 10,120.90 -2.79% 100.38
May-17 501.6 -21.86% 58.65 9,025.25 -10.83% 89.52
Jun-17 555.7 10.79% 64.98 9,606.40 6.44% 95.28
Jul-17 531.65 -4.33% 62.16 9,476.40 -1.35% 93.99
Aug-17 481.15 -9.50% 56.26 8,859.65 -6.51% 87.87
Sep-17 503.25 4.59% 58.84 9,172.60 3.53% 90.98
Oct-17 552.9 9.87% 64.65 9,756.00 6.36% 96.76
Nov-17 539.95 -2.34% 63.13 9,238.75 -5.30% 91.63
Dec-17 571.15 5.78% 66.78 9,620.10 4.13% 95.42
Jan-18 579.9 1.53% 67.80 9,384.75 -2.45% 93.08
Feb-18 535.35 -7.68% 62.60 8,960.25 -4.52% 88.87
Mar-18 495.1 -7.52% 57.89 8,358.05 -6.72% 82.90
Apr-18 528.4 6.73% 61.78 9,060.70 8.41% 89.87
May-18 480.35 -9.09% 56.16 8,220.25 -9.28% 81.53
Jun-18 564 17.41% 65.95 9,173.15 11.59% 90.98
Jul-18 568.5 0.80% 66.47 9,179.40 0.07% 91.04
23
Aug-18 652.85 14.84% 76.33 10,390.95 13.20% 103.06
Sep-18 623.25 -4.53% 72.87 9,972.45 -4.03% 98.91
Oct-18 580.25 -6.90% 67.85 9,757.50 -2.16% 96.78
Nov-18 492.6 -15.11% 57.60 9,275.70 -4.94% 92.00
Dec-18 430.5 -12.61% 50.34 8,868.70 -4.39% 87.96
Jan-19 423.45 -1.64% 49.51 8,825.35 -0.49% 87.53
Feb-19 445.15 5.12% 52.05 8,884.85 0.67% 88.12
Mar-19 478.85 7.57% 55.99 9,346.55 5.20% 92.70
Apr-19 457.65 -4.43% 53.51 9,402.50 0.60% 93.26
May-19 409.85 -10.44% 47.92 8,455.10 -10.08% 83.86
Jun-19 400.95 -2.17% 46.88 8,065.15 -4.61% 79.99
Jul-19 374.2 -6.67% 43.75 8,269.00 2.53% 82.02
Alpha -0.0082
Beta 1.29763
Return on market = Average of nifty pharma returns
Return on Sun Pharmaceuticals = Alpha + Beta * Return on market
Return on market = -019%
Return on Sun Pharmaceuticals = -1.06%
The above table shows past 5 year historical prices i.e. Aug 2014 to July2019 which is used
to find out the return on monthly basis.
Return is calculated using the formula
24
Alpha- Alpha is tool which measure the performance on risk adjusted basis. It is calculated by
using intercept of equity returns and Nifty returns on excel spreadsheet.
Beta - Beta is measure of systematic risk of a security in comparison to market as a whole. It

is calculated by using slope of equity returns and Nifty returns for a period of 60 months on
excel spreadsheet.
The dates are arranged in chronological order for the calculation of returns. The first column
of both shows the adjusted closing prices of Sun Pharma.
The second column shows the monthly returns of both nifty and Sun pharma, it can be observed
that the volatility and the risk in the stock is more in comparison with nifty.
The third column of the both Nifty and Sun Pharma shows the investment of Rs 100 on
Aug2014 or Rs 100 as base at the beginning of the period which has decreased over a period.
In the table we observe that Rs 100 invested in Sun pharma on Aug 2014 has become Rs 43.75
over the period of 60 months means negative returns in 5 years.
If Rs 100 invested in the Nifty that has given negative return only over a period of 5years.
H0 : Mean difference of the returns of Sun Pharma and nifty pharma are equal
H1 : Mean difference of the returns of Sun Pharma and nifty pharma are not equal
t-Test: Two-Sample Assuming Unequal Variances
Nifty pharma Sun Pharma

Mean -0.001885166 -0.010602085
Variance 0.002986116 0.006622916
Observations 59 59
Hypothesized Mean Difference 0
df 101
t Stat 0.683044789
P(T<=t) one-tail 0.248071185
t Critical one-tail 1.66008063
P(T<=t) two-tail 0.49614237
t Critical two-tail 1.983731003
25
Result: After conducting t test we come to the conclusion that mean difference of the returns
of Sun pharma and nifty pharma are equal as null hypothesis is accepted which is because p
value is greater than 0.05.
Nifty pharma Sun Pharma

Nifty pharma 1
Sun Pharma 0.871323304 1
The returns of Sun Pharma and nifty pharma are 87.13% correlated.
26
Horizontal Analysis:
Balance sheet of Sun Pharmaceuticals Horizontal Analysis

Mar-15 Mar-16 Mar-17 Mar-18 Mar-19
EQUITIES AND LIABILITIES
SHAREHOLDER'S FUNDS
Equity Share Capital 100.00% 116.19% 115.84% 115.84% 115.84%
Total Share Capital 100.00% 116.19% 115.84% 115.84% 115.84%
Reserves and Surplus 100.00% 94.28% 92.20% 86.68% 100.32%
Total Reserves and Surplus 100.00% 94.28% 92.20% 86.68% 100.32%
Total Shareholders Funds 100.00% 94.48% 92.41% 86.95% 100.46%
NON-CURRENT LIABILITIES
Long Term Borrowings 100.00% 164.85% 64.99% 133.70% 121.55%
Other Long Term Liabilities 100.00% 94.43% 4.73% 6.33% 133.05%
Long Term Provisions 100.00% 79.44% 46.76% 14.25% 6.48%
Total Non-Current Liabilities 100.00% 107.21% 52.51% 52.97% 44.32%
CURRENT LIABILITIES
Short Term Borrowings 100.00% 87.79% 95.33% 122.60% 104.12%
Trade Payables 100.00% 119.35% 139.57% 167.67% 145.11%
Other Current Liabilities 100.00% 58.72% 92.03% 65.10% 127.64%
Short Term Provisions 100.00% 68.99% 89.39% 117.36% 123.08%
Total Current Liabilities 100.00% 79.97% 99.19% 110.78% 120.08%
Total Capital And Liabilities 100.00% 91.31% 90.45% 90.60% 100.72%
ASSETS
NON-CURRENT ASSETS
Tangible Assets 100.00% 112.76% 124.21% 140.46% 180.43%
Intangible Assets 100.00% 78.98% 241.90% 261.33% 0.00%
Capital Work-In-Progress 100.00% 70.67% 97.13% 76.44% 0.00%
Intangible Assets Under Development 100.00% 0.00% 1063.00% 1024.36% 0.00%
Fixed Assets 100.00% 101.40% 120.19% 127.05% 131.46%
Non-Current Investments 100.00% 86.43% 74.83% 71.02% 68.48%
Long Term Loans And Advances 100.00% 114.26% 0.26% 0.18% 0.05%
Other Non-Current Assets 100.00% 147.20% 5470.15% 6003.74% 5994.14%
Total Non-Current Assets 100.00% 90.16% 85.89% 84.44% 82.96%
CURRENT ASSETS
Current Investments 100.00% 87.82% 42.60% 47.65% 263.97%
Inventories 100.00% 97.39% 105.44% 97.55% 127.56%
Trade Receivables 100.00% 111.87% 150.58% 157.92% 279.09%
Cash And Cash Equivalents 100.00% 40.67% 40.89% 37.28% 81.83%
Short Term Loans And Advances 100.00% 106.94% 1.99% 7.47% 42.30%
OtherCurrentAssets 100.00% 78.77% 454.37% 666.13% 980.46%
Total Current Assets 100.00% 98.04% 117.21% 126.74% 204.94%
Total Assets 100.00% 91.31% 90.45% 90.60% 100.72%
27
Vertical Analysis
Balance sheet of Sun Pharmaceuticals Vertical Analysis

SHAREHOLDER'S FUNDS
CURRENT LIABILITIES
Trade Payables 3.97% 5.18% 6.12% 7.34% 5.71%
ASSETS
NON-CURRENT ASSETS
Tangible Assets 8.32% 10.27% 11.42% 12.90% 14.90%
Fixed Assets 11.42% 12.68% 15.17% 16.01% 14.90%
CURRENT ASSETS
Inventories 5.85% 6.24% 6.82% 6.30% 7.40%
Total Assets 100.00% 100.00% 100.00% 100.00% 100.00%
28
Cipla
Cipla is the leading pharmaceutical company in India with presence across the globe. It was
established in 1935 as Pharmaceutical Laboratories & Chemical Industrial Ltd and changed to
its current name in 1984. The company has a vast portfolio with more than 1,500 products in
the market. The company’s business is divided into three strategic units - Active
Pharmaceutical Ingredients (API), Respiratory and Cipla Global Access. Its largest market is
in India which contributed 39% to its revenues in FY18, followed by Africa and North America
with contribution of 22% and 17%, respectively. The total income reached Rs 11,779.69 crore
(US$ 1.83 billion). In FY19, total income of the company reached Rs 9,400.61 crore (US$
1.30 billion).
• Leading global pharmaceutical company
• More than 1,500 products with various therapeutic categories
• Second largest pharma company in India in 2017 as per Moving Annual Turnover
(MAT)
• Over 43 state-of-the-art manufacturing facilities for API and formulations
• Ranked amongst the top 10 most dispensed generic companies in North America
Cipla – Caring for Life.
2017 Received approval for Q-TIB from World Health Organisation (WHO)
2016 Sold its own stake in Chase
2014 Acquired minority holding in US-based Chase Pharma
2013 Acquired 100% stake in Medpro South Africa
2005 Set up formulation facility in Baddi, Himachal Pradesh
29
2002 Set up 4 state-of-the-art manufacturing facilities in Goa
1999 Strategic partnership with Ranbaxy
1987 Launched several new products
1985 Approval taken from FDA for bulk medicine manufacturing plants
1984 Name changed to Cipla
1952 Set up of its first research division
1935 Incorporated in Mumbai, Maharashtra as Chemical Industrial & Pharmaceutical

Laboratories Ltd
Cipla Ltd. Nifty Pharma

Date Price Returns Price Returns
Aug-14 514.2 100.00 10,082.30 100.00
Sep-14 626.8 21.90% 121.90 10,847.15 7.59% 107.59
Oct-14 666.55 6.34% 129.63 10,874.75 0.25% 107.86
Nov-14 635.15 -4.71% 123.52 11,254.75 3.49% 111.63
Dec-14 626.4 -1.38% 121.82 10,949.80 -2.71% 108.60
Jan-15 695.75 11.07% 135.31 11,693.55 6.79% 115.98
Feb-15 682.05 -1.97% 132.64 11,798.65 0.90% 117.02
Mar-15 712.45 4.46% 138.56 12,844.80 8.87% 127.40
Apr-15 636 -10.73% 123.69 12,057.80 -6.13% 119.59
May-15 650.45 2.27% 126.50 12,511.75 3.76% 124.10
Jun-15 615.4 -5.39% 119.68 12,202.55 -2.47% 121.03
Jul-15 709.05 15.22% 137.89 12,353.25 1.23% 122.52
Aug-15 682.15 -3.79% 132.66 13,213.20 6.96% 131.05
Sep-15 636.05 -6.76% 123.70 12,918.75 -2.23% 128.13
Oct-15 690.45 8.55% 134.28 13,170.15 1.95% 130.63
Nov-15 643.65 -6.78% 125.18 11,492.90 -12.74% 113.99
Dec-15 649.75 0.95% 126.36 11,963.50 4.09% 118.66
30
Jan-16 585.1 -9.95% 113.79 11,755.85 -1.74% 116.60
Feb-16 514.15 -12.13% 99.99 11,167.70 -5.00% 110.77
Mar-16 511.95 -0.43% 99.56 10,989.15 -1.60% 108.99
Apr-16 537 4.89% 104.43 11,293.25 2.77% 112.01
May-16 472.65 -11.98% 91.92 10,995.45 -2.64% 109.06
Jun-16 501 6.00% 97.43 11,142.00 1.33% 110.51
Jul-16 527.4 5.27% 102.57 11,697.25 4.98% 116.02
Aug-16 572.95 8.64% 111.43 11,489.15 -1.78% 113.95
Sep-16 580.05 1.24% 112.81 11,461.00 -0.25% 113.67
Oct-16 578.75 -0.22% 112.55 11,636.00 1.53% 115.41
Nov-16 566.6 -2.10% 110.19 11,080.05 -4.78% 109.90
Dec-16 568.8 0.39% 110.62 10,267.00 -7.34% 101.83
Jan-17 575.35 1.15% 111.89 10,236.35 -0.30% 101.53
Feb-17 583.7 1.45% 113.52 10,585.15 3.41% 104.99
Mar-17 592.95 1.58% 115.32 10,411.15 -1.64% 103.26
Apr-17 557.45 -5.99% 108.41 10,120.90 -2.79% 100.38
May-17 516.35 -7.37% 100.42 9,025.25 -10.83% 89.52
Jun-17 555.6 7.60% 108.05 9,606.40 6.44% 95.28
Jul-17 560.1 0.81% 108.93 9,476.40 -1.35% 93.99
Aug-17 571.9 2.11% 111.22 8,859.65 -6.51% 87.87
Sep-17 586.1 2.48% 113.98 9,172.60 3.53% 90.98
Oct-17 627.6 7.08% 122.05 9,756.00 6.36% 96.76
Nov-17 600.9 -4.25% 116.86 9,238.75 -5.30% 91.63
Dec-17 608.5 1.26% 118.34 9,620.10 4.13% 95.42
Jan-18 592.15 -2.69% 115.16 9,384.75 -2.45% 93.08
Feb-18 589.65 -0.42% 114.67 8,960.25 -4.52% 88.87
Mar-18 545.45 -7.50% 106.08 8,358.05 -6.72% 82.90
Apr-18 607.4 11.36% 118.13 9,060.70 8.41% 89.87
May-18 524.8 -13.60% 102.06 8,220.25 -9.28% 81.53
Jun-18 616.65 17.50% 119.92 9,173.15 11.59% 90.98
Jul-18 641.35 4.01% 124.73 9,179.40 0.07% 91.04
Aug-18 662.15 3.24% 128.77 10,390.95 13.20% 103.06
31
Sep-18 654.05 -1.22% 127.20 9,972.45 -4.03% 98.91
Oct-18 629.25 -3.79% 122.37 9,757.50 -2.16% 96.78
Nov-18 540.85 -14.05% 105.18 9,275.70 -4.94% 92.00
Dec-18 519.5 -3.95% 101.03 8,868.70 -4.39% 87.96
Jan-19 517.3 -0.42% 100.60 8,825.35 -0.49% 87.53
Feb-19 554.55 7.20% 107.85 8,884.85 0.67% 88.12
Mar-19 528.9 -4.63% 102.86 9,346.55 5.20% 92.70
Apr-19 565 6.83% 109.88 9,402.50 0.60% 93.26
May-19 558.85 -1.09% 108.68 8,455.10 -10.08% 83.86
Jun-19 553.45 -0.97% 107.63 8,065.15 -4.61% 79.99
Jul-19 548.8 -0.84% 106.73 8,269.00 2.53% 82.02
Alpha 0.00528
Beta 0.844149
Return on Cipla = Alpha + Beta * Return on market
Return on Cipla = 0.37%
The above table shows past 5 year historical prices i.e. Aug 2014 to July2019 which is used
to find out the return on monthly basis.
Return is calculated using the formula
32
excel spreadsheet.
of both shows the adjusted closing prices of Cipla
The second column shows the monthly returns of both nifty pharma and Cipla, it can be
observed that the volatility and the risk in the stock is more in comparison with nifty.
The third column of the both Nifty pharma and Cipla shows the investment of Rs 100 on
Aug2014 or Rs 100 as base at the beginning of the period which has decreased over a period.
In the table we observe that Rs 100 invested in Cipla on Aug 2014 has become 106.73 over the
period of 60 months means giving 6.73% returns in 5 years.
If Rs 100 invested in the Nifty that has given negative return only over a period of 5years.
Here it means Cipla stock is performing well in the market as only cipla given positive returns
instead of nifty pharma given negative returns.
H0 : Mean difference of the returns of Cipla and nifty pharma are equal
H1 : Mean difference of the returns of Cipla and nifty pharma are not equal
Nifty pharma Cipla

Mean -0.001885166 0.00368837
Variance 0.002986116 0.005342106
Observations 59 59
df 107
t Stat -0.469116438
P(T<=t) one-tail 0.319970435
P(T<=t) two-tail 0.639940871
of Cipla and nifty pharma are equal as null hypothesis is accepted which is because p value is
greater than 0.05.
33
Nifty pharma Cipla
Nifty pharma 1
Cipla 0.631126499 1
The returns of Cipla and nifty pharma are 63.11% correlated. Means 63.11% of cipla returns
are moving with respect to nifty pharma returns.
34
Horizontal Analysis:
Balance sheet of Cipla Ltd. Horizontal Analysis

SHAREHOLDER'S FUNDS
Equity Share Capital 100% 100.06% 100.19% 100.27% 100.34%
Total Share Capital 100% 100.06% 100.19% 100.27% 100.34%
Revaluation Reserves 100% 0.00% 0.00% 0.00% 0.00%
Reserves and Surplus 100% 108.28% 115.74% 127.76% 143.04%
Total Reserves and Surplus 100% 108.19% 115.65% 127.66% 142.92%
Total Shareholders Funds 100% 108.08% 115.42% 127.26% 142.31%
Long Term Borrowings 100% 31.71% 17.07% 0.00% 0.00%
Deferred Tax Liabilities [Net] 100% 10.84% 0.00% 0.00% 12.96%
Other Long Term Liabilities 100% 326.80% 313.00% 313.25% 294.65%
Long Term Provisions 100% 86.88% 82.68% 81.91% 71.16%
Total Non-Current Liabilities 100% 57.12% 47.98% 47.76% 51.41%
CURRENT LIABILITIES
Short Term Borrowings 100% 81.99% 23.49% 12.64% 0.00%
Trade Payables 100% 66.21% 86.74% 105.57% 98.98%
Other Current Liabilities 100% 165.35% 190.28% 164.31% 130.01%
Short Term Provisions 100% 71.30% 75.18% 113.92% 122.61%
Total Current Liabilities 100% 82.56% 71.42% 76.33% 66.17%
Total Capital And Liabilities 100% 100.31% 102.73% 112.53% 121.24%
ASSETS
NON-CURRENT ASSETS
Tangible Assets 100% 106.75% 118.07% 119.90% 129.36%
Intangible Assets 100% 98.83% 111.82% 129.03% 0.00%
Capital Work-In-Progress 100% 151.27% 159.45% 128.40% 0.00%
Intangible Assets Under Development 100% 174.62% 70.24% 125.84% 0.00%
Other Assets
Fixed Assets 100% 110.69% 121.17% 120.95% 113.46%
Non-Current Investments 100% 92.06% 90.36% 89.11% 94.22%
Long Term Loans And Advances 100% 38.04% 37.41% 40.42% 36.05%
Other Non-Current Assets 100% 704.58% 840.67% 762.60% 678.64%
Total Non-Current Assets 100% 101.60% 107.28% 106.07% 103.56%
CURRENT ASSETS
Current Investments 100% 140.46% 166.15% 270.69% 523.70%
Inventories 100% 88.73% 80.67% 92.36% 87.21%
Trade Receivables 100% 92.11% 94.17% 113.47% 153.90%
Cash And Cash Equivalents 100% 64.05% 70.64% 274.93% 210.92%
Short Term Loans And Advances 100% 1.85% 1.62% 3.01% 0.85%
OtherCurrentAssets 100% 682.44% 681.03% 831.94% 813.38%
Total Current Assets 100% 98.61% 96.75% 121.03% 144.52%
Total Assets 100% 100.31% 102.73% 112.53% 121.24%
35
Vertical Analysis:
Balance sheet of Cipla Ltd. Vertical Analysis

SHAREHOLDER'S FUNDS
Revaluation Reserves 0.06% 0.00% 0.00% 0.00% 0.00%
NON-CURRENT LIABILITIES 0.00% 0.00% 0.00% 0.00% 0.00%
Deferred Tax Liabilities [Net] 2.18% 0.24% 0.00% 0.00% 0.23%
CURRENT LIABILITIES 0.00% 0.00% 0.00% 0.00% 0.00%
Trade Payables 9.85% 6.50% 8.32% 9.24% 8.04%
Total Capital And Liabilities 100% 100% 100% 100% 100%
ASSETS
NON-CURRENT ASSETS
Tangible Assets 22.83% 24.29% 26.24% 24.33% 24.36%
Other Assets 0.00% 0.00% 0.00% 0.00% 0.00%
Fixed Assets 26.03% 28.72% 30.70% 27.98% 24.36%
CURRENT ASSETS 0.00% 0.00% 0.00% 0.00% 0.00%
Inventories 21.65% 19.15% 17.00% 17.77% 15.57%
Total Assets 100% 100% 100% 100% 100%
36
Lupin Ltd.
Lupin Ltd is the leading pharmaceutical company in India and is amongst the top 10 generic
companies in the world. It started its business in 1968 and over the period of time has become
one of the largest pharmaceutical companies in India and the world. Its businesses include
formulations, drug delivery systems, Active Pharmaceutical Ingredients (API), and
biotechnology. Its largest market is in the North American region which contributed 38 per
cent of its revenues in FY18, followed by India with 26 per cent and Asia-Pacific (APAC) with
17 per cent. Its net sales reached Rs 15,560 crore (US$ 2.41 billion) in FY18. In Q1 FY19, its
total sales reached Rs 3,774.6 crore (US$ 537.85 million).
• Amongst the top 10 generic companies in the world
• Fifth largest pharma company in India in 2017 as per Moving Annual Turnover (MAT)
• 18 manufacturing sites
• Products is sold in more than 100 countries
2017 Entered over the counter (OTC) market with launch of Softovac in India
2016 Acquired Novel Laboratories Inc. and US-based GAVIS Pharmaceuticals LLC
2010 Became fifth largest generic player in the US
2004 Commenced US Brands Business with the launch of Suprax
2002 More than 100 patent filings
1993 Lupin Laboratories Ltd. and Lupin Chemicals Ltd. raise money through IPOs
1989 Joint venture in Thailand and Lupin Chemicals (Thailand) Ltd was formed
1980 Commissioned first Formulations plant and an R&D centre at Aurangabad,

Maharashtra
1968 Commenced business
37
Lupin Ltd. Nifty Pharma
Date Price Change Price Returns
Aug-14 1,285.40 100.00 10,082.30 100.00
Sep-14 1,395.65 8.58% 108.58 10,847.15 7.59% 107.59
Oct-14 1,369.05 -1.91% 106.51 10,874.75 0.25% 107.86
Nov-14 1,480.45 8.14% 115.17 11,254.75 3.49% 111.63
Dec-14 1,427.95 -3.55% 111.09 10,949.80 -2.71% 108.60
Jan-15 1,585.30 11.02% 123.33 11,693.55 6.79% 115.98
Feb-15 1,746.95 10.20% 135.91 11,798.65 0.90% 117.02
Mar-15 2,008.40 14.97% 156.25 12,844.80 8.87% 127.40
Apr-15 1,772.55 -11.74% 137.90 12,057.80 -6.13% 119.59
May-15 1,833.25 3.42% 142.62 12,511.75 3.76% 124.10
Jun-15 1,886.05 2.88% 146.73 12,202.55 -2.47% 121.03
Jul-15 1,696.70 -10.04% 132.00 12,353.25 1.23% 122.52
Aug-15 1,935.55 14.08% 150.58 13,213.20 6.96% 131.05
Sep-15 2,034.00 5.09% 158.24 12,918.75 -2.23% 128.13
Oct-15 1,928.90 -5.17% 150.06 13,170.15 1.95% 130.63
Nov-15 1,786.95 -7.36% 139.02 11,492.90 -12.74% 113.99
Dec-15 1,837.25 2.81% 142.93 11,963.50 4.09% 118.66
Jan-16 1,710.75 -6.89% 133.09 11,755.85 -1.74% 116.60
Feb-16 1,754.55 2.56% 136.50 11,167.70 -5.00% 110.77
Mar-16 1,479.25 -15.69% 115.08 10,989.15 -1.60% 108.99
Apr-16 1,607.25 8.65% 125.04 11,293.25 2.77% 112.01
May-16 1,474.75 -8.24% 114.73 10,995.45 -2.64% 109.06
Jun-16 1,539.70 4.40% 119.78 11,142.00 1.33% 110.51
Jul-16 1,739.85 13.00% 135.35 11,697.25 4.98% 116.02
Aug-16 1,482.20 -14.81% 115.31 11,489.15 -1.78% 113.95
Sep-16 1,486.25 0.27% 115.63 11,461.00 -0.25% 113.67
Oct-16 1,518.20 2.15% 118.11 11,636.00 1.53% 115.41
Nov-16 1,504.85 -0.88% 117.07 11,080.05 -4.78% 109.90
Dec-16 1,486.95 -1.19% 115.68 10,267.00 -7.34% 101.83
38
Jan-17 1,470.70 -1.09% 114.42 10,236.35 -0.30% 101.53
Feb-17 1,474.10 0.23% 114.68 10,585.15 3.41% 104.99
Mar-17 1,445.20 -1.96% 112.43 10,411.15 -1.64% 103.26
Apr-17 1,338.35 -7.39% 104.12 10,120.90 -2.79% 100.38
May-17 1,161.00 -13.25% 90.32 9,025.25 -10.83% 89.52
Jun-17 1,059.85 -8.71% 82.45 9,606.40 6.44% 95.28
Jul-17 1,032.00 -2.63% 80.29 9,476.40 -1.35% 93.99
Aug-17 979.45 -5.09% 76.20 8,859.65 -6.51% 87.87
Sep-17 1,014.00 3.53% 78.89 9,172.60 3.53% 90.98
Oct-17 1,028.05 1.39% 79.98 9,756.00 6.36% 96.76
Nov-17 817.7 -20.46% 63.61 9,238.75 -5.30% 91.63
Dec-17 885.1 8.24% 68.86 9,620.10 4.13% 95.42
Jan-18 883.75 -0.15% 68.75 9,384.75 -2.45% 93.08
Feb-18 819.95 -7.22% 63.79 8,960.25 -4.52% 88.87
Mar-18 735.85 -10.26% 57.25 8,358.05 -6.72% 82.90
Apr-18 811.55 10.29% 63.14 9,060.70 8.41% 89.87
May-18 770.35 -5.08% 59.93 8,220.25 -9.28% 81.53
Jun-18 903.8 17.32% 70.31 9,173.15 11.59% 90.98
Jul-18 824.4 -8.79% 64.14 9,179.40 0.07% 91.04
Aug-18 931.45 12.99% 72.46 10,390.95 13.20% 103.06
Sep-18 900.95 -3.27% 70.09 9,972.45 -4.03% 98.91
Oct-18 885.45 -1.72% 68.89 9,757.50 -2.16% 96.78
Nov-18 886.75 0.15% 68.99 9,275.70 -4.94% 92.00
Dec-18 844.3 -4.79% 65.68 8,868.70 -4.39% 87.96
Jan-19 875.7 3.72% 68.13 8,825.35 -0.49% 87.53
Feb-19 763.75 -12.78% 59.42 8,884.85 0.67% 88.12
Mar-19 739.6 -3.16% 57.54 9,346.55 5.20% 92.70
Apr-19 872.05 17.91% 67.84 9,402.50 0.60% 93.26
May-19 745.55 -14.51% 58.00 8,455.10 -10.08% 83.86
Jun-19 754.75 1.23% 58.72 8,065.15 -4.61% 79.99
Jul-19 751.05 -0.49% 58.43 8,269.00 2.53% 82.02
39
Alpha -0.0033
Beta 1.05309
Return on Lupin = Alpha + Beta * Return on market
Return on Lupin = -0.53%
The above table shows past 5 year historical prices i.e. Aug2014 to July2019 which is used to
find out the return on monthly basis.

excel spreadsheet.
of both shows the adjusted closing prices of Lupin.
The second column shows the monthly returns of both Nifty and LUPIN, it can be observed
that the volatility and the risk in the stock is more in comparison with nifty.
The third column of the both Nifty and LUPIN shows the investment of Rs 100 on Aug2014
or Rs 100 as base at the beginning of the period which has increased over a period. In the table
we observe that Rs 100 invested in Lupin on Aug2014 has become Rs. 58.43 over the period
of 60 months means negative returns in 5 years.
If Rs 100 invested in the Nifty that has negative returns only over a period of 5 years.
For the calculation of Return on LUPIN, Average Return on Market (NIFTY) is considered
with volatility and risk measurement tool i.e. Alpha and Beta shown above in table.
40
H0 : Mean difference of the returns of lupin and nifty pharma are equal
H1 : Mean difference of the returns of lupin and nifty pharma are not equal
Nifty pharma Lupin

Mean -0.001885166 -0.005263451
Variance 0.002986116 0.007680662
Observations 59 59
df 97
t Stat 0.25124977
P(T<=t) one-tail 0.40107625
P(T<=t) two-tail 0.802152501
of lupin and nifty pharma are equal as null hypothesis is accepted which is because p value is
greater than 0.05.
Nifty pharma Lupin

Nifty pharma 1
Lupin 0.656625979 1
The returns of Lupin and nifty pharma are 65.66% correlated.
41
Horizontal Analysis
Balance sheet of Lupin Ltd. Horizontal Analysis
SHAREHOLDER'S FUNDS
Equity Share Capital 100% 100.24% 100.47% 100.58% 100.67%
Total Share Capital 100% 100.24% 100.47% 100.58% 100.67%
Reserves and Surplus 100% 132.28% 164.36% 175.60% 190.50%
Total Reserves and Surplus 100% 132.28% 164.36% 175.60% 190.50%
Total Shareholders Funds 100% 131.96% 163.72% 174.85% 189.61%
Long Term Borrowings 100% 72.41% 46.45% 21.32% 2.77%
Deferred Tax Liabilities [Net] 100% 67.10% 111.09% 136.52% 140.69%
Other Long Term Liabilities 100% 1237.41% 1358.00% 1072.12% 1168.71%
Long Term Provisions 100% 118.27% 162.78% 200.05% 203.12%
Total Non-Current Liabilities 100% 115.00% 157.01% 174.96% 179.87%
CURRENT LIABILITIES
Short Term Borrowings 100% 1780.24% 2766.68% 39.19% 8.02%
Trade Payables 100% 108.34% 141.88% 137.03% 120.34%
Other Current Liabilities 100% 337.46% 361.68% 742.11% 247.64%
Short Term Provisions 100% 22.35% 28.35% 29.67% 98.96%
Total Current Liabilities 100% 117.78% 154.56% 140.74% 120.33%
Total Capital And Liabilities 100% 129.33% 162.14% 169.71% 178.88%
ASSETS
NON-CURRENT ASSETS
Tangible Assets 100% 115.20% 148.12% 149.81% 226.26%
Intangible Assets 100% 114.47% 130.88% 2099.33% 0.00%
Capital Work-In-Progress 100% 127.41% 98.12% 173.48% 0.00%
Fixed Assets 100% 117.57% 138.32% 178.64% 181.03%
Non-Current Investments 100% 208.95% 268.22% 286.57% 294.99%
Long Term Loans And Advances 100% 16.29% 22.35% 25.76% 26.20%
Other Non-Current Assets 100% 72078.13% 77734.38% 81218.75% 46068.75%
Total Non-Current Assets 100% 153.21% 188.72% 218.71% 224.03%
CURRENT ASSETS
Current Investments 100% 0.00% 127.69% 14.06% 127.41%
Inventories 100% 110.03% 122.20% 125.32% 132.56%
Trade Receivables 100% 180.71% 155.15% 196.66% 148.07%
Cash And Cash Equivalents 100% 58.95% 291.47% 187.12% 103.61%
Short Term Loans And Advances 100% 4.10% 5.13% 6.03% 7.83%
OtherCurrentAssets 100% 391.60% 481.56% 641.83% 658.81%
Total Current Assets 100% 112.47% 143.38% 135.11% 147.00%
Total Assets 100% 129.33% 162.14% 169.71% 178.88%
42
Vertical Analysis:
Balance sheet of Lupin Ltd. Vertical Analysis

SHAREHOLDER'S FUNDS
Deferred Tax Liabilities [Net] 1.72% 0.89% 1.18% 1.38% 1.35%
CURRENT LIABILITIES
Trade Payables 9.47% 7.93% 8.28% 7.64% 6.37%
ASSETS
NON-CURRENT ASSETS
Tangible Assets 18.36% 16.35% 16.77% 16.20% 23.22%
Fixed Assets 22.94% 20.86% 19.57% 24.15% 23.22%
CURRENT ASSETS
Inventories 15.80% 13.44% 11.91% 11.67% 11.71%
Total Assets 100.00% 100.00% 100.00% 100.00% 100.00%
43
Testing the relative returns of companies with nifty pharma index
H0 : There is no significant mean difference between the returns of the companies
H1 : There is significant mean difference between the returns of the companies
Anova: Single Factor
SUMMARY
Groups Count Sum Average Variance
Sun Pharma 59 -0.625523023 -0.010602085 0.006622916
Cipla 59 0.217613812 0.00368837 0.005342106
Lupin 59 -0.310543621 -0.005263451 0.007680662
ANOVA
Source of Variation SS df MS F P-value F crit
Between Groups 0.00615278 2 0.00307639 0.469781024 0.625929701 3.047906481
Within Groups 1.139449689 174 0.006548561
Total 1.145602469 176
Result after conducting Anova test
As P value is greater than 0.05, means that null hypothesis is accepted, while the alternate
hypothesis is rejected. Overall there is no significant mean difference between the returns of
the companies.
H0 : There is no significant mean difference between the returns of the companies and nifty
pharma index
H1 : There is significant mean difference between the returns of the companies and nifty
pharma index.
Anova: Single Factor
SUMMARY
Groups Count Sum Average Variance
Nifty pharma 59 -0.111224801 -0.001885166 0.002986116
Sun Pharma 59 -0.625523023 -0.010602085 0.006622916
Cipla 59 0.217613812 0.00368837 0.005342106
Lupin 59 -0.310543621 -0.005263451 0.007680662
ANOVA
Source of Variation SS df MS F P-value F crit
Between Groups 0.006361896 3 0.002120632 0.37480572 0.771256463 2.643511078
Within Groups 1.312644431 232 0.00565795
Total 1.319006327 235
44
Result after conducting Anova test
As P value is greater than 0.05, means that null hypothesis is accepted, while the alternate
hypothesis is rejected. Overall there is no significant mean difference between the returns of
the companies and nifty pharma index
Relative Comparison
Sun Pharma Lupin Cipla

Mar-19 Mar-19 Mar-19
Per Share Ratios
Basic EPS (Rs.) 3.4 41.54 23.45
Diluted EPS (Rs.) 3.4 41.37 23.41
Cash EPS (Rs.) 5.71 43.43 30.51
Book Value [ExclRevalReserve]/Share (Rs.) 95.21 378.28 195.88
Book Value [InclRevalReserve]/Share (Rs.) 95.21 378.28 195.88
Dividend / Share(Rs.) 2.75 5 3
Revenue from Operations/Share (Rs.) 42.94 250.97 153.58
PBDIT/Share (Rs.) 12.62 69.48 38.22
PBIT/Share (Rs.) 10.31 60.06 31.15
PBT/Share (Rs.) 3 51.77 30.94
Net Profit/Share (Rs.) 3.4 34.01 23.44
Profitability Ratios
PBDIT Margin (%) 29.38 27.68 24.88
PBIT Margin (%) 24.01 23.93 20.28
PBT Margin (%) 6.98 20.62 20.14
Net Profit Margin (%) 7.92 13.55 15.26
Return on Networth / Equity (%) 3.57 8.98 11.96
Return on Capital Employed (%) 10.12 15.36 15.63
Return on Assets (%) 2.16 7.81 10.25
Total Debt/Equity (X) 0.26 0 0
Asset Turnover Ratio (%) 27.31 57.67 67.18
Liquidity Ratios
Current Ratio (X) 0.84 4.75 4
Quick Ratio (X) 0.63 3.59 2.79
Inventory Turnover Ratio (X) 3.69 4.92 4.31
Valuation Ratios
Enterprise Value (Cr.) 1,20,496.23 33,385.05 42,471.14
EV/Net Operating Revenue (X) 11.7 2.94 3.43
EV/EBITDA (X) 39.8 10.62 13.79
MarketCap/Net Operating Revenue (X) 11.16 2.94 3.45
Price/BV (X) 5.03 1.95 2.7
Price/Net Operating Revenue 11.16 2.94 3.45
Earnings Yield 0.01 0.05 0.04
45
Interpretation:
The relative analysis of ratios of three companies is there in the above table. Looking towards
the EPS ratios. Lupin has the highest EPS ratio. Moving towards the profitability ratios, the
PBDIT and PBIT margin is highest in Sun Pharma in three of the companies, means the Sun
Pharma is earning well. Sun Pharma has the highest enterprise value. Its P/BV ratio is also
highest. Through analysing the ratios the Sun Pharma is the best company to invest in for better
returns in the future.
46
Chapter 6 (Findings and Conclusion)
After conducting the research and analysis, I find that the investor should not believe only on
any single factor or analysis as it requires fundamental and technical analysis.
On the basis of fundamental analysis, one should invest in Sun Pharma , as its ratios are better
in comparison to other pharma stocks.
On analysing the five year returns, only Cipla company has provided the positive returns
irrespective of the negative returns of the nifty pharma index.
Technical analysis should also be taken into consideration for investing in any stock.
News analysis should also be taken into consideration.
Don’t invest in stock market on the basis of intuition.
47
Chapter 7 (Learning from SIP)
Work and Management
✓ Learned how to do the fundamental and technical analysis on a stock or currency pair.
✓ Learned how the trading companies used to earn money from their clients.
✓ Learned the art of communication.
✓ Learned how to deal with customer before selling the product.
✓ Learned few investing strategies in both Indian stock market and forex market.
Skills
✓ Work management skills.

✓ Time Management.
✓ Patience
✓ Corporate culture
✓ Team work
Learnings from Forex Market : Forex is the market in which currencies are traded. Forex
market is the largest, most liquid market in the world , with trillions of dollars changing hands
every day. Foreign exchange market ( Forex, FX, or currency market) is a global, worldwide
decentralized financial market for trading currencies. Financial centres around the world
function as anchors of trading between a wide range of different type of buyers and sellers
around the clock, with exception of weekends.
Types of Pair Currencies
1) Major Pair: Pairs with USD ex. USDJPY, EURUSD.

2) Minor Pair: AUSUSD and NZWUSD.
3) Cross Pair: Pairs which are not having USD.
4) Exotic Pair: Very risky pairs.
Calculation of Pips: Remove the last digit and calculate the difference (remove the decimals
if any)
48
Lot Sizes:
1) Standard Lot : 1.0 Volume (10$)

2) Mini Lot : 0.1 Volume (1$)
3) Micro Lot: 0.01 Volume(0.1$)
4) Nano Lot: 0.001 Volume(0.01$)
Long/Short:
Long means looking for a bullish market for buy position whereas short means looking for a
bearish market for sell position.
Types of analysis:
1) Technical Analysis : Using the past data and forecasting the future prices using
statistical tools.
2) Fundamental Analysis: Using the economic events and eco situation. Analysing the
news.
3) Sentimental Analysis: Based upon sentiments.
Support and Resistance:
Support where the price bounce back
Resistance where the price hitting the top price.
The place where support becomes resistance and vice versa is called price flip.
Technical Indicators:
1) Candlestick Pattern
49
2) Relative Strength Index (RSI)
3) Stochastic Oscillator
4) Bollinger Band
50
5) Parabolic SAR
51
References
• www.moneycontrol.com
• www.investing.com
• www.topstockresearch.com
• www.ibef.org
• www.niftyindices.com
• www.investopedia.com
• www.jmarathonservices.in
• www.attainix.com
52

Chirayu Report

Загружено:

Сведения о документе

Авторское право

Доступные форматы

Поделиться этим документом

Поделиться или встроить документ

Параметры публикации

Этот документ был вам полезен?

Это неприемлемый материал?

Авторское право:

Доступные форматы

Chirayu Report

Загружено:

Авторское право:

Доступные форматы

A

Fundamental analysis on Pharmaceutical sector

Submitted in partial fulfilment of the requirements of PGDM

Jaipuria Institute Of Management,

It has never been submitted nor been published elsewhere.

To Whomsoever It May Concern

(Name and signature of faculty guide)

I take this opportunity to express my profound gratitude to my Industry Mentor Miss

India's biotechnology industry comprising bio-prescription drugs, bio-offerings, bio-

Recent tendencies/investments inside the Indian pharmaceutical area are as follows:

Accountability, Collaboration & Passion.

About the company

J Marathon is a boutique advisory firm based on the principles of independence, transparency

How to identify customer segments.

b. Company reaches customers through different distribution channels through social

c. Customers are classified based on their Investment size.

The kind of relationship maintained by the organization with the customers

a. It is a kind of Personnel relationship which JMarathon maintains with their

b. The motivation of the organization to maintain customer relationship is

i. For Acquisition of customer

ii. For boosting their service.

c. Different types of relationships maintained by the organization with its

i. Personal assistance: JMarathon provides personal assistance for the new

a. JMarathon (Hyderabad) is mostly run by the

b. Self-Developed Training Video courses on stock

a. Customized services for the according to risk taking nature of customer

b. Customized strategies for wealth management.

c. Understands customer financial goals.

d. Transparency through sharing respective login details to respective customers.

f. Performance of each financial advisory is analysed and the customer is accounts

h. Customers are educated through Instagram, WhatsApp.

i. Conveniently available to customers mobile and internet medium.

j. Services charges and minimum and more likely affordable by customers.

a. Handling the portfolios and setting up guidelines.

b. Advise individuals on investment decisions.

a. Training and Development

b. Online Stock Awareness Course

There are two objectives of an enterprise

2) Profit Maximisation- Earnings maximisation is the functionality of a business enterprise in

The capital market is divided into segments:

a) Primary market b) Secondary market

The exchange performs the following functions:

• Provides buying and selling platform to investors and provide liquidity

Porter Five Forces Analysis of J Marathon Advisory Services Private Limited

2) The Bargaining Power of Consumers: - Purchasers' general dealing power is a

Scope of the study:

Objective of the study:

• To gain in-depth knowledge regarding fundamental analysis.

Company Website: www.sunpharma.com

Sun Pharma – Reaching People. Touching Lives.

2018 Sales of US$ 4 billion in FY18; Announced acquisition of US-based speciality

2000 Acquired Pradeep Drug Company

1997 First international merger with Caraco Pharmaceutical Laboratories, USA

1996 Sales network expanded to across 24 countries

1994 Launched IPO

1989 Launched gastroenterology products in India

1983 Established a portfolio of five psychiatry products

Sun Pharma Nifty Pharma

Return on market = Average of nifty pharma returns

Return on Sun Pharmaceuticals = Alpha + Beta * Return on market

Return on market = -019%

Return on Sun Pharmaceuticals = -1.06%

Return is calculated using the formula

Beta - Beta is measure of systematic risk of a security in comparison to market as a whole. It