Capstone Research Project 2018 - 20

Financial Analysis and Valuation of two

pharmaceutical companies

Submitted by:
Name of Faculty Guide: Dr. Jyotirmoy Dasgupta Name of the Student: Sourav Musaddi
Designation: Professor Roll No.: 182053921
Program: Financial Market
Batch: 2018-20

Institute for Technology and Management

Plot No. 25 / 26, Institutional Area,
Sector – 4, Kharghar, Navi Mumbai

1
 CERTIFICATE FROM THE FACULTY GUIDE

This is to certify that the Project Work titled Financial Analysis and Valuation of two pharmaceutical

companies is a bonafide work carried out by Mr. Sourav Musaddi Roll No. PGDM 182053921 a student

of PGDM program 2018 – 2020 of the Institute for Technology & Management, Kharghar, Navi

Mumbai under my guidance and direction.

Signature of Guide : __________________________

Name of Guide : Dr. Jyotirmoy Dasgupta

Designation :Prof , ITM Business School

Date: 23/01/2020 Place: Kharghar, Navi Mumbai

2
Contents
1.Introduction ......................................................................................................................................... 5
1.1 Identification of Sector ........................................................................................................... 5
1.2 Overview of the Sector ........................................................................................................... 5
1.3 Need for the study ........................................................................................................................ 7
1.4 Objective of the study ................................................................................................................... 7
1.5 Porter’s Five Forces ....................................................................................................................... 8
1.6 Industry Trends ............................................................................................................................. 9
1.7 Strategic Perspective................................................................................................................... 11
1.8 Product ........................................................................................................................................ 11
1.9 Customer ..................................................................................................................................... 12
1.10 The Indian Pharmaceutical Industry at a glance: ...................................................................... 13
1.11 Market Size: .............................................................................................................................. 13
1.12 Indian Government: Vision and Initiatives: .............................................................................. 13
1.13 Future ........................................................................................................................................ 14
2. Literature Review .............................................................................................................................. 15
2.1 Origin of Indian Pharmaceutical Industry ................................................................................... 15
2.2 Indian Pharmaceutical at a glance .............................................................................................. 15
2.3 Challenges overcome by financial analysis ................................................................................. 16
2.4 Top 5 Pharmaceutical Companies in India .................................................................................. 18
Cipla............................................................................................................................................... 18
Aurobindo Pharma ........................................................................................................................ 19
Lupin Limited................................................................................................................................. 19
Dr Reddy’s Laboratories ................................................................................................................ 20
Sun Pharmaceutical Industries Ltd................................................................................................ 20
2.5 Analysis ....................................................................................................................................... 21
On the basis on Return on Equity (ROE) ....................................................................................... 21
On the basis of Net Profit Margin ................................................................................................. 22
2.6 Road Ahead ................................................................................................................................. 23
2.7 Conclusion ................................................................................................................................... 23
3.Research Design ................................................................................................................................. 24
Research Design Characteristics ................................................................................................... 24
Types of Research Design............................................................................................................. 25
3.1Objective ...................................................................................................................................... 25
3.2Methodology................................................................................................................................ 25
3.3 Data Analysis ............................................................................................................................... 26

3
 3.4 Potential Outcome of the Project ............................................................................................... 26
3.5 Findings ....................................................................................................................................... 26
4.Data collection, Analysis and Interpretation ..................................................................................... 27
4.1 Different methods used for valuation ........................................................................................ 27
4.2 Details of data collected ............................................................................................................. 28
4.2.1Financial Statements of CIPLA .............................................................................................. 28
4.2.2 Financial Statements of Sun Pharmaceutical Industries Ltd. ............................................... 30
4.3 Analysis and Interpretation of Data collected ............................................................................ 32
4.3.1 Valuation of CIPLA ................................................................................................................ 32
4.3.2 Valuation of Sun Pharmaceutical Industries Ltd. ................................................................. 34
4.3.3 EPS vs MPS ........................................................................................................................... 36
5. Findings ............................................................................................................................................. 37
5.1 Cipla............................................................................................................................................. 37
5.2 Sun Pharmaceutical Industries Ltd.............................................................................................. 37
6.References ......................................................................................................................................... 38

4
1.Introduction

1.1 Identification of Sector

The “Pharmaceutical Sector” in India ranks 3rd in the world in terms of volume and 14th
in terms of value.

1.2 Overview of the Sector

1. The contribution of pharmaceutical sector in India's GDP is 2% and 12% of

manufacturing sector GDP. It is also significant contributor to the strength of any
economy by creating jobs for millions and contributing to the export earnings.
2. The Central Drugs Standard Control Organization (CDSCO) is the national
regulatory body for Indian pharmaceuticals and medical devices in India. Within the
CDSCO, the Drug Controller General of India (DCGI) regulates pharmaceutical and
medical devices, under the gamut of Ministry of Health and Family Welfare. The
DCGI is advised by the Drug Technical Advisory Board (DTAB) and the Drug
Consultative Committee (DCC). It is divided into zonal offices which do pre-
licensing and post-licensing inspections, post-market surveillance, and recalls when
needed. The Central Government have established four zonal offices of the Central
Drug Standard Control Organisation at Mumbai, Kolkata, Chennai, and Ghaziabad.
The Zonal Offices work in close collaboration with the State Drug Control
Administration and assist them in securing uniform enforcement of the Drug Act and
other connected legislations, on all India basis. The Central Drugs Laboratory,
Kolkata is the national statutory laboratory of the Government of India for quality
control of Drug and Cosmetics and is established under the Indian Drug & Cosmetics
Act, 1940. It is the oldest quality control laboratory of the Drug Control Authorities
in India. It functions under the administrative control of the Director-General of
Health Services in the Ministry of Health and Family Welfare.

5
 The functions of the laboratory are as follows:
a) Analytical quality control of majority of the imported Drug available in Indian
market.
b) Analytical quality control of drug and cosmetics manufactured within the
country on behalf of the Central and State Drug Controller Administrations.
c) Acting as an Appellate authority in matters of disputes relating to quality of
Drug.
d) Collection, storage and distribution of International Standard International
Reference Preparations of Drug and Pharmaceutical Substances.
e) Preparation of National Reference Standards and maintenance of such
Standards. Maintenance of microbial cultures useful in drug analysis
Distribution of Standards and cultures to State Quality Control Laboratories and
drug manufacturing establishments.
f) To advise the Central Drug Control Administration in respect of quality and
toxicity of drug awaiting licence.
g) Quick analysis of life saving Drug on an All-India basis received under National
Survey of Quality of Essential Drug Programme from Zonal Offices of Central
Drug Standard Control Organisation.
3. The emerging players of the Pharmaceutical Sector at national and international level
are:
a) Sun Pharmaceutical Industries
b) Glenmark Pharmacy
c) Lupin Limited
d) Aurobindo Pharma
e) Dr.Reddy ’s Laboratories
f) Amgen
g) GlaxoSmithKline (GSK)
h) Gilead Sciences
i) Abbvie
j) Novartis
k) Merck & Co. (MSD)
l) Pfizer
6
1.3 Need for the study

The interest of the various groups related to a firm (promoters of business, stock holders,
bond holders, trade creditors) is affected by the financial performance of the firm. So, it is
much of significance for these groups to analyze the financial performance of the firm they
are interested in. The type of analysis varies according to the specific interest of the party
involved. While trade creditors are interested in the liquidity of the firm, bond holders and
stock holders are interested in the cash flow ability of the firm. Further stock holders, ie.,
investors are interested in the present and expected future earnings as well as stability of
these earnings. Therefore, a study like this carries much significance for promoters, stock
holders and trade creditors.
The study focuses on overall financial position of particular pharmaceutical companies
during the specific period based on the selected variables, which may interest not only for the
respective companies in the industry but also brings a process of development operational
aspects of the entire industry. The study is much important to the management from the point
of decision-making purpose, to identify the strength, weakness areas of the company and
finally helps to maximize the intrinsic value of the company. The study has academic and
practical significance. It helps the academicians and researchers to develop new ideas for
further study.

1.4 Objective of the study

• To study the growth and development of Indian Pharmaceutical companies.

• To examine the consistency and growth rate of selected financial parameters of the
particular Pharmaceutical Companies.

• To analyze profitability and liquidity status of selected pharmaceutical companies.

• To examine the overall contribution of selected financial parameters and clustering

them into groups, to identify the most influencing factor towards earnings and classify
the companies into groups by applying discriminant analysis.

• To evaluate the financial health and viability of particular pharmaceutical companies

7
1.5 Porter’s Five Forces

1) Threats of entry posed by new or potential competitors;

2) Degree of rivalry among existing firms;

3) Bargaining power of buyers;

4) Bargaining power of suppliers and

5) Closeness of substitute products.

Below is an anlysis of the Pharmaceutical Industry using the above named forces:

1. Threats of entry posed by new or potential competitor (LOW)

• High entry barriers due to costs associated with research & development of new drugs
(i.e. years of investment in R&D for a drug that may/may not work)
• Government regulation (i.e. FDA)
• The threat of entry posed by new or potential competitor is a LOW competitive force
due to the above entry barriers & regulatory constraints.

2. Degree of rivalry among existing firms (HIGH)

• High rivalry among main companies in the industry

• The degree of rivalry among existing firms is a HIGH competitive force

3. Bargaining power of buyers (MEDIUM)

• Hospitals & other health care organizations buy in bulk quantities and exert pressure
on pharmaceutical companies to keep prices in check
• Regular patients have lost bargaining power due to price increases in generic drugs
• The bargaining power of buyers is a MEDIUM competitive force.

4. Bargaining power of suppliers (LOW)

• Sales for the pharmaceutical industry concentrate in a handful of large players and that
has decreased the bargaining power of suppliers.
• The bargaining power of suppliers is a LOW competitive force

5. Closeness of substitute products (HIGH)

• Demand for generic versus brand name drugs has increased because of the costs
• Generic drug companies do not have the high costs associated with the research &
development of new drugs and that allows them to sell at cheaper prices

8
 • The closeness of substitute products is a HIGH competitive force

Overall and based on the above analysis of Porter’s Five Forces, we can conclude that the
pharmaceutical industry is not attractive for new entrants.

1.6 Industry Trends

The pharmaceutical sector was valued at US$ 33 billion in 2017. The

country's pharmaceutical industry is expected to expand at a CAGR of 22.4 per cent
over 2015–20 to reach US$ 55 billion. ... The country accounts for around 30 per cent
(by volume) and about 10 per cent (value) in the US$ 70-80 billion US generics market.
The graphical representation of the Compounded Annual Growth Rate (CAGR) over
past 5 years can be seen below:

Source: www.ibef.org

The market share, sales turnover and net profit of the top ten pharmaceutical companies in
India are depicted below:

9
 Company Market Share Sales Turnover Net Profit (in
(in crores) crores)
Cipla 1.14 11444.81 1468.52
Reddy’s Laboratories 0.93 9359.3 566.9
Lupin 1.01 10088.18 1344.66
Mylan 0.12 1191 69.6
Sun Pharma 0.79 7947.6 -494.59
Aurobindo Pharma 1.03 10303.15 1812.77
Cadila Healthcare 0.58 5822.6 1090.8
Torent Pharma 0.42 4248.24 482.04
Glenmark 0.64 6431.88 1014.35
Pharmaceuticals
Abbott 0.33 3307.12 401.22
Source: www.nseindia.com/ www.bseindia.com

12000.00
10000.00
8000.00
6000.00
4000.00
net profit(in crs)
2000.00
0.00 market share
-2000.00

market share sales turnover(in crs) net profit(in crs)

Source: Self

10
1.7 Strategic Perspective

Opportunities for the Indian Pharmaceutical Sector: Multinational pharmaceutical

companies are looking towards merging countries due to the change in the global
pharmaceutical market and low growth in developed market like the US, Japan, and
EU. The Indian pharmaceutical sector offers a wide range of opportunities for the
pharmaceutical companies to establish their units and market their products in India.
Supportive regulatory framework and availability of large number of scientists and
professionals is an added advantage for the pharmaceutical companies in India. The
huge investment in infrastructure and larger domestic market made India as one of the
favourite destinations for pharmaceutical companies. Indian Pharmaceutical sector is
looking towards promising future because of Low cost of production and developed
R&D infrastructure.

Challenges for the Indian Pharmaceutical Sector: India pharmaceutical companies

are key players in the space of generic market of global pharmaceutical sector and
India is one of the important players of Pharmerging market. The nature and
diversity of the Indian pharmaceutical market, health care objectives and legal
https://www.ibef.org/industry/pharmaceutical-india.aspxsystem pose unique
challenges for pharmaceuticals sector in India. The diversity of the challenges are
very complex, hence, Indian pharmaceutical sector have to face these challenges
with more courage to emerge as one of the leading players in the world
pharmaceutical market and to achieve progress in the health care.

1.8 Product

The range of products offered by the companies under the Pharmaceuticals sector in
India are:

a) Cardiovascular
b) Children’s Health

11
 c) Dermatology & Cosmetology
d) Diabetes
e) Hepatitis
f) HIV/AIDS
g) Infectious Diseases & Critical Care
h) Neurosciences
i) Oncology
j) Opthalmology
k) Respiratory
l) Urology
m) Women’s Health
n) Devices

1.9 Customer

The pharmaceutical industry functions just like any other industry. It has raw
materials manufacturers, finished goods manufacturers, R&D (research and
development) companies, marketing companies, and consumers. Yet, it is far more
regulated and capital-intensive than other industries. The supply chain of the
pharmaceutical industry is similar to that of any other industry in the manufacturing
sector. Because pharmaceuticals directly affect millions of people’s health,
industry manufacturers are very strict about ensuring the safety and quality of drugs
at each level of the supply chain. These companies use fixed, regulator-certified
suppliers of raw materials. Companies also store the raw and packaging materials
in separate warehouses. After a company processes the raw materials, it makes the
final drug at the manufacturing unit. A company that has a single manufacturing unit
uses only one warehouse, while a company with multiple manufacturing units stores
its drugs in central and regional warehouses.

Next, distributors and super stockists receive the drugs and supply them to entities in the retail
segment:

12
 • hospitals
• pharmacy stores
• health care centers
• clinics

Then, retailers sell OTC drugs directly to consumers. A prescription drug purchase
requires authorization from a qualified doctor.

1.10 The Indian Pharmaceutical Industry at a glance:

The Indian pharmaceuticals industry, as per the report by equity master, is third and thirteenth
largest in terms of volume and value respectively around the globe. Branded generics with 70
to 80 percent share, dominate the market. India has achieved an eminent global position in
pharma sector with huge pool of scientists and technologists working in this flourishing
industry. The Union Cabinet has allowed Foreign Direct Investment (FDI) up to 100 per cent
under the automatic route to manufacture medical devices in India.

1.11 Market Size:

Among the manufacturing facilities registered with US FDA as on March 2014, Indian
pharmaceutical was the highest at 523 in number outside US. The domestic pharma market
grew at 12% Year on Year in Financial Year (FY) 2015-16 almost at par with average of
12.9% in FY15. Indian pharmaceutical firms aimed for acquisitions in Japan owing to aging
populations and rising health costs, with aim to increase the penetration of generic drugs to
sixty percent of the market by next year. Within the country, with 22.4% rate, Gujarat
recorded the highest growth during November’14, which was more than the industry growth
rate of 10.9%, as per AIOCD Pharma soft-tech AWACS. Biotechnology industry of India
expected to achieve US $ 100 billion mark by end of 2025 with average growth rate of 30% a
year.

1.12 Indian Government: Vision and Initiatives:

The Addendum 2015 of the Indian Pharmacopoeia (IP) 2014 was published on behalf of the
13
Ministry of Health & Family Welfare (GOI), with the ambition to improve the quality of
medicines for better public health. 'Pharma Vision 2020' set by the government aimed to help
India become a leader renowned globally for drug manufacture with quick processing time
supplemented with new facilities to increase investments, simultaneously addressing the issue
of affordability and availability of common drugs.

Steps initiated by the government are:

With the purpose to assess and benchmark the quality of Indian companies at par with Global
players, data integrity guidelines are prepared by Indian Pharmaceutical Association (IPA).
‘Make in India’ programme launched by the government encourage manufacturing in country
with reduction of imports. Venture capital fund of Rs. 1,000crore (US $ 154 million) to
support start-ups in R&D is set to be launched. Rs. 1,000crore (US$ 146.72 million) planned
to be invested in the pharmaceutical sector in Gujarat by Indian and Global companies.

1.13 Future

The future of Indian pharma industry is quite bright. At present, the pharmaceutical
industry of India is the world's 3rd largest in terms of volume. Over the years, the
Indian pharmaceutical industry has emerged as the most attractive investment
destinations in the world. Several MNC pharma companies have fairly a good market
access in India as compared to other countries. Moreover, the increased returns lower
risks and expected diversified growth are some of the major factors leading to an
increased number of investors in this industry. Indian pharmaceutical industry has all
the requisite things including a skilled workforce, low cost of production, high
managerial and technical competence and much more needed to flourish in the global
market. In addition to this, the growing number of pharma companies are producing
immense employment opportunities for a large number of job seekers. Therefore, it
would be right to say that the future of Indian pharma industry is definitely bright.

14
2. Literature Review

2.1 Origin of Indian Pharmaceutical Industry

The pharmaceutical production in India began in 1910s when private initiatives established
Bengal Chemical and Pharmaceutical Works in Calcutta and Alembic Chemicals in Baroda
and setting up of pharmaceutical research institutes for tropical diseases like King Institute of
Preventive Medicine, Chennai (in Tamil Nadu), Central Drug Research Institute, Kasauli (in
Himachal Pradesh), Pastures Institute, Coonoor (in Tamil Nadu), etc. through British
initiatives.

2.2 Indian Pharmaceutical at a glance:

India’s pharmaceutical industry has emerged as one of the major leader in drug production
from almost nothing. As a result, it has emerged as world’s third largest producer of in terms
of volume and fourteen in terms of value. It is one of the major contributors to Indian economy
with a growth percentage of 7-8% and is projected to grow to US $55 Billion by 2020. It is
quite heartening to note that the pharma sector is out-performing most other sectors in
achieving consistently high growth. India is now among the top five pharmaceutical emerging
markets of the world.

Indian drugs are exported to more than 200 countries in the world, with the US as the key
market. Generic drugs account for 20 per cent of global exports in terms of volume, making
the country the largest provider of generic medicines globally and expected to expand even
further in coming years. India’s pharmaceutical exports stood at US$ 17.27 billion in FY18
and US$ 9.29 billion in FY19 (up to September). In 2018-19, these exports are expected to
cross US$ 19 billion. The Government of India plans to set up a US$ 640 million venture
capital fund to boost drug discovery and strengthen pharmaceutical infrastructure. The ‘Pharma
Vision 2020’ by the government’s Department of Pharmaceuticals aims to make India a major
hub for end-to-end drug discovery.

15
The pharmaceutical industry in India meet around 70% of the country’s demand for bulk
drugs, drug intermediates, pharmaceutical formulations, chemicals, tablets, capsules, orals
and injectibles. There are approximately 250 large units and about 800 small scale units.
Which from the core of pharmaceutical industry in India (including 5 central sector
units).The pharma companies have started facing challenges in domestic market due to
increase in competition from unlisted MNCs in this segment. They are rapidly expanding
their field force to extend their geographical reach and also pharmaceutical companies
entered a difficult period where shareholders, the market and regulators have created
significant pressures for changing within the industry. The pharma industry also have
challenges particularly to improve infrastructure, new product patent, drug price control and
quality management and R&D programs.

The study focuses on overall financial position of particular pharmaceutical companies

during the specific period based on the selected variables, which may interest not only for the
respective companies in the industry but also brings a process of development operational
aspects of the entire industry. The study is much important to the management from the point
of decision-making purpose, to identify the strength, weakness areas of the company and
finally helps to maximize the intrinsic value of the company. The study has academic and
practical significance. It helps the academicians and researchers to develop new ideas for
further study.

2.3 Challenges overcome by financial analysis

Current global financial conditions and the threat of a broad recession accelerated the
timetable for implementing transformational changes in global organizations, as the industry
confronts lower corporate stock prices and an increasingly cost-averse customer. Leaders of
the largest global pharmaceutical companies recognize the need for transformational change
in their organizations, but will need to move swiftly to ensure sustained growth. The Indian
pharmaceutical industry would have to contend with several challenges particularly

− Effects of new product patent

− Drug price control

16
− Regulatory reforms

− Infrastructure development

− Quality management and

− Conformance to global standards

For all these challenges financial performance is playing a vital role and a sound financial
strength is meet all these challenges and it is necessary to find out the overall financial status
of the pharmaceutical industry. Financial performance analysis is the process of determining
the operation and financial characteristics of a firm from accounting and financial statements.
The ability of an organization to analyze its financial position is essential for improving its
competitive position in the market place. Through a careful analysis of its financial
performance, the organization can identify opportunities to improve performance of the
department, unit or at the organizational level.

Financial performance analysis is the process of determining the operation and financial
characteristics of a firm from accounting and financial statements. The goal of such an
analysis is to determine the efficiency and performance of the firm’s management, as
reflected in the financial records and reports. From the above point of view the researcher has
undertaken an analysis of financial performance of selected Indian pharmaceutical companies
to understand how management of finance plays crucial role in the growth.

17
2.4 Top 5 Pharmaceutical Companies in India

Name Net Sales (Rs.cr)

Cipla 11389.90
Aurobindo Pharma 10269.90
Lupin Limited 10080.58
Dr Reddy’s Laboratories 9359.30
Sun Pharmaceutical Industries 7923.84
Ltd.

Cipla

Cipla is one of the largest pharma companies in Mumbai. Founded in 1935 by Dr. K
A Hamied, Cipla sets up an enterprise with the vision to make India self-sufficient in
healthcare. Over the past 82 years, they have emerged as one of the most recognized
pharmaceutical names in the global market. Today Cipla has over USD 2 billion turnovers
annually and over 23,000 employees working on over 1500 products. The market capitalization
as on 27th December 2018 is Rs 41729.55 cr.

18
Aurobindo Pharma

Aurobindo Pharma was founded by K. Nityananda Reddy and P.V. Ramaprasad Reddy with
others in 1986. Headquartered in Hyderabad, Telangana, Aurobindo Pharma Limited
manufactures APIs and generic pharmaceuticals. Six prime therapeutic areas of medication
addressed by the company are anti-allergic, gastroenterology, antiretrovirals, antibiotics,
central nervous system and cardiology. The market capitalization as on 27th December 2018 is
Rs 41760.56cr.

Lupin Limited

Lupin, also based out of Mumbai, is a renowned pharma player having a wide range of quality,
affordable generic and branded formulations and APIs. The company commenced its business
in 1968, and first gained recognition when it became one of the world's largest manufacturers
of Tuberculosis (TB) drugs. Today, it has significant market share in the
cardiovascular, diabetology, asthma, pediatrics, CNS, anti-infectives and NSAIDs therapy
segments in the global market. The market capitalization as on 27th December 2018 is Rs
37879.90 cr.

19
Dr Reddy’s Laboratories

Dr. Reddy's is one of the most profitable Indian multinational pharma companies in
Hyderabad. The company began as an active pharmaceutical ingredients (API) manufacturer
in 1984, producing high-quality APIs for the Indian domestic market. In 1987, the company
started its formulations operations and, after becoming a force to reckon with in the Indian
formulations market, went international in 1991. Today, the company is more than a 200
million-dollar venture with a presence in almost all major therapeutic areas in the global
market. The market capitalization as on 27th December 2018 is Rs 42968.25 cr.

Sun Pharmaceutical Industries Ltd.

Sun Pharmaceutical Industries Ltd, also based out of Mumbai, is an international

specialty pharma company. The Company manufactures and markets pharmaceuticals
formulations as branded generics, as well as generics in India, the United States (US) and
several other markets across the world. Today, Sun Pharma has over 30,000 employees
worldwide manufacturing more than 2000 products across the 150 markets in the world. The
market capitalization as on 27th December 2018 is Rs 98924.30 cr.

20
2.5 Analysis

On the basis on Return on Equity (ROE)

Return on equity =Earnings after taxes/shareholder’s equity. The return on equity measures the
return earned on equity shareholder’s investment in a firm. The higher this return, the better
off the owners.

Return on Equity
Aurobindo
Years Cipla Pharma Lupin Dr Reddy's Sun Pharma
2018 10.4 18.15 8.51 4.8 -2.5
2017 7.61 20.23 21.25 11.93 -0.1
2016 12.2 23.69 23.76 11.67 -4.99
2015 10.65 28.29 26.55 15.79 -6.48
2014 13.76 29.21 33.3 20.71 -38.18
Mean 10.924 23.914 22.674 12.98 -10.45
Source: www.nseindia.com/ www.bseindia.com

Return on Equity
30
25
20
15
10
5
0
-5 Cipla Aurobindo Lupin Dr Reddy's Sun Pharma
-10 Pharma
-15

Source: Self
The calculated Mean ROE values coincides with those obtained directly from the data.
Aurobindo Pharma has the maximum ROE followed by Lupin while Sun Pharma has the
lowest, infact negative ROE. Negative return on equity of Sun Pharma is because its equity is
not sufficient and not sustainable. It pays more for its capital than what it generates in return.

21
On the basis of Net Profit Margin

Net Profit Margin=Earning after Taxes/Sales. It measures how profitable a company’s sales
are after all expenses, including taxes on interest and preferred stock dividends, have been
deducted. The higher the firms net profit margin, the better.

Net Profit Margin

Aurobindo
Years Cipla Pharma Lupin Dr Reddy's Sun Pharma
2018 12.89 17.65 13.33 6.05 -6.22
2017 9.05 17.76 24.87 14.24 -0.29
2016 12.06 17.74 25.23 13.26 -14.09
2015 11.65 18.73 24.58 16.77 -18.38
2014 14.8 16.48 25.99 19.86 -99.99
Mean 12.09 17.672 22.8 14.036 -27.794
Source: www.nseindia.com/ www.bseindia.com

Net Profit Margin

30
20
10
0
Cipla Aurobindo Lupin Dr Reddy's Sun Pharma
-10 Pharma
-20
-30
-40

Source: Self

The graph shows that Mean Net Profit Margin is highest for Lupin which is a good sign and it
seems that the company’s management is working hard and has been successfully
maximizing its shareholder’s profits. But a deeper analysis shows that Sun Pharma has been
witnessing negative Net Profit Margin which seems to be the main reason for its low ROE
and also higher investments in research and development even as sales growth slows down,
could further pinch margins. Indian pharmaceutical companies have hit by US regulatory
bans and warnings over quality control violations at production plants, which have weighed
on profitability.

22
2.6 Road Ahead

The generic drugs have made the medicines affordable by common man. Health programmes
for rural India, lifesaving medicines and vaccines with preventive measures are positive
indications for the pharma companies. The Indian pharma market size is expected to grow to
US $ 100 billion by 2020 due to increasing consumer spending, rapid urbanization, and
raising healthcare insurance. With increase in consumer’s affordability to spend with fast
pace urbanization and awareness about the healthcare insurance, the vision 2020 appears
achievable.

2.7 Conclusion

Sharma and Sharma (2009) The study found that the traditional method signals firm’s
profitability, cash performance, operating efficiency and liquidity and growth signals related
with the firm’s earnings, growth, research and development, capital expenditure and
advertising expenditure. Finally, the study concludes financial analysis based on growth
signals is very successful in differentiating firms.

Pascal Nguyen, (2003) constructs a simple financial score designed to capture short term
changes in firm operating efficiency, profitability and financial policy. It concluded that
government policy with respect to input and outputs has the significant influence on the
liquidity position of the company.

Joseph. D. Piotroski (2000) examines whether a simple accounting based fundamental

analysis strategy, when applied to a broad portfolio of high Book to Market firms, can shift
the distribution of returns earned by an investor.

23
 3.Research Design

Research design is defined as a framework of methods and techniques chosen by a researcher

to combine various components of research in a reasonably logical manner so that the research
problem is efficiently handled. It provides insights about “how” to conduct research using a
particular methodology. Every researcher has a list of research questions which need to be
assessed – this can be done with research design.

The sketch of how research should be conducted can be prepared using research design. Hence,
the market research study will be carried out on the basis of research design.

The design of a research topic is used to explain the type of research

(experimental, survey, correlational, semi-experimental, review) and also its sub-type
(experimental design, research problem, descriptive case-study). There are three main sections
of research design: Data collection, measurement, and analysis.

The type of research problem an organization is facing will determine the research design and
not vice-versa. Variables, designated tools to gather information, how will the tools be used to
collect and analyze data and other factors are decided in research design on the basis of a
research technique is decided.

An impactful research design usually creates minimum bias in data and increases trust on the
collected and analyzed research information. Research design which produces the least margin
of error in experimental research can be touted as the best. The essential elements of research
design are:

1. Accurate purpose statement of research design

2. Techniques to be implemented for collecting details for research
3. Method applied for analyzing collected details
4. Type of research methodology
5. Probable objections for research
6. Settings for research study
7. Timeline
8. Measurement of analysis
Research Design Characteristics
There are four key characteristics of research design:

Neutrality: The results projected in research design should be free from bias and neutral.
Understand opinions about the final evaluated scores and conclusion from multiple individuals
and consider those who agree with the derived results.

Reliability: If a research is conducted on a regular basis, the researcher involved expects

similar results to be calculated every time. Research design should indicate how the

24
research questions can be formed to ensure the standard of obtained results and this can happen
only when the research design is reliable.

Validity: There are multiple measuring tools available for research design but valid measuring
tools are those which help a researcher in gauging results according to the objective of research
and nothing else. The questionnaire developed from this research design will be then valid.

Generalization: The outcome of research design should be applicable to a population and not
just a restricted sample. Generalization is one of the key characteristics of research design.

Types of Research Design

A researcher must have a clear understanding of the various types of research design to select
which type of research design to implement for a study. Research design can be broadly
classified into quantitative and qualitative research design.

Qualitative Research Design: Qualitative research is implemented in cases where a

relationship between collected data and observation is established on the basis of mathematical
calculations. Theories related to a naturally existing phenomenon can be proved or disproved
using mathematical calculations. Researchers rely on qualitative research design where they
are expected to conclude “why” a particular theory exists along with “what” respondents have
to say about it.

Quantitative Research Design: Quantitative research is implemented in cases where it is

important for a researcher to have statistical conclusions to collect actionable insights. Numbers
provide a better perspective to make important business decisions. Quantitative research design
is important for the growth of any organization because any conclusion drawn on the basis of
numbers and analysis will only prove to be effective for the business.

3.1Objective

The objective of the “Financial Analysis and future prospects of the Indian Pharmaceutical
Industry” is to study how “Pharmaceuticals Sector” is affecting the Indian economy. New
global strategies implemented by them.

3.2Methodology

Secondary Research: I shall be doing secondary research through the study of:
• Already published articles
• Journals

25
 • Websites

The present trend of the Indian Pharmaceutical industry and the strategies adopted by the
two pharmaceutical companies to make a presence in the minds of the consumers shall be
studied in detail. If necessary, data will be collected through secondary research and will be
analysed. My views about the analysed data will be explained and if any recommendation
required will be mentioned.

3.3 Data Analysis

Statistical tools and techniques help us to analyse the collected data. Collected data can be put
up in excel sheet and can be analysed using different methods. In case of secondary research,
the data collected from secondary research can be analysed using different parameters like:

• Standard Matrix
• Porter’s generic strategies
• BCG Matrix
• SWOT Analysis.
• Review of Literature.

3.4 Potential Outcome of the Project

Attempts will be made to conduct a secondary research by collecting information about top 5
pharmaceutical companies. The aim of this project is to analyse how pharmaceutical sector is
contributing to the GDP of the country. Also, about the financial analysis of the top 5
pharmaceutical companies.

3.5 Findings

• During the study I found that Financial Analysis are the most important for any type of
decision making towards investment of the company.
• Financial Analysis are very important for management to make their budgets.
• The liquidity of the company is dependent upon the profitability of the company.

26
4.Data collection, Analysis and Interpretation

4.1 Different methods used for valuation

Price to Sales Model- The price-to-sales (P/S) ratio is a valuation ratio that compares a
company’s stock price to its revenues. It is an indicator of the value placed on each dollar of a
company’s sales or revenue.

The P/S ratio can be calculated either by dividing the company’s market capitalization by its
total sales over a designated period – usually twelve months, or on a per-share basis by dividing
the stock price by sales per share. The P/S ratio is also known as a "sales multiple" or "revenue
multiple."

EV/EBITDA- Enterprise multiple, also known as the EV multiple, is a ratio used to determine
the value of a company. The enterprise multiple looks at a firm in the way that a potential
acquirer would by considering the company's debt. Stocks with an enterprise multiple of less
than 7.5x based on the last 12 months (LTM) is generally considered a good value.

However, using a strict cutoff is generally not appropriate because this is not an exact
science. Enterprise multiple, also known as the EV/EBITDA multiple, is a ratio used to
determine the value of a company. It is computed by dividing enterprise value by EBITDA.
Enterprise multiples can vary depending on the industry. It is reasonable to expect higher
enterprise multiples in high-growth industries and lower multiples in industries with slow
growth.

PE Model- The price-to-earnings ratio (P/E ratio) is the ratio for valuing a company that
measures its current share price relative to its per-share earnings (EPS). The price-to-earnings
ratio is also sometimes known as the price multiple or the earnings multiple.

P/E ratios are used by investors and analysts to determine the relative value of a company's
shares in an apples-to-apples comparison. It can also be used to compare a company against
its own historical record or to compare aggregate markets against one another or over time.

27
4.2 Details of data collected

4.2.1Financial Statements of CIPLA

Profit and Loss Statement (year ended March)

Particulars FY 16 FY 17 FY 18 FY 19
Net Revenue from sales 12117.72 10768.49 11389.9 12374.01
COGS 4,899.25 4,141.30 4,155.49 4,508.16
Gross Profit 7,218.47 6,627.19 7,234.41 7,865.85
Gross Margin 59.6% 61.5% 63.5% 63.6%
Staff Cost 1778.56 1728.97 1785.94 1839.84
Other Operating expenses 3386.48 3301.96 3252.92 3524.01
Total Operating Expenses 5165.04 5030.93 5038.86 5363.85
EBITDA 2,053.43 1,596.26 2,195.55 2,502.00
EBITDA Margin 16.9% 14.8% 19.3% 20.2%
Less: Dep & Amortization 442.69 499.97 529.61 569.72
EBIT 1,610.74 1,096.29 1,665.94 1,932.28
EBIT Margin 13.3% 10.2% 14.6% 15.6%
Less: Interest Expenses 147.07 39.2 11.9 16.97
Add: Other Income 280.3 129.85 334.88 577.52
PBT 1,743.97 1,186.94 1,988.92 2,492.83
Total Tax 281.67 212 442.88 604.42
Rep PAT 1,462.30 974.94 1,546.04 1,888.41

28
 Balance Sheet as on March
Equity and Liabilities FY 16 FY 17 FY 18 FY 19
Equity Share Capital 161 161 161 161
Reserve and Surplus 11825.2 12639.61 13952.5 15620.77
Equity shareholders funds 11986.2 12800.6 14113.5 15781.8

Non-Current Liabilities
Long Term Borrowings 0.13 0.07 0 0
Deferred Tax Liabilities [Net] 35.85 0 0 42.84
Other Long-Term Liabilities 130.72 125.2 125.3 117.86
Long Term Provisions 132 125.61 124.45 108.12
Total Non-Current liabilities 298.7 250.88 249.75 268.82

Current liabilities
Short Term Borrowings 1131.68 324.26 174.43 0
Trade Payables 990.84 1298.21 1580.02 1481.35
Other Current Liabilities 582.73 670.58 579.07 458.18
Short Term Provisions 249.22 262.78 398.18 428.55
Total Current Liabilities 2954.47 2555.83 2731.7 2368.08

Total Liabilities 15239.4 15607.3 17095 18418.7

Fixed assets
Capex 849.38 539.83 355.66
Gross Fixed Assets 4240.43 5089.81 5629.64 5985.3
Depreciation 414.32 854.23 1309.29 1795.99
Net Fixed Assets 3826.11 4235.58 4320.35 4189.31
Cap Work in progress 512.81 540.52 435.28 241.32
Investments 3716.26 3647.71 3597.24 3803.61
Deferred Tax Assets [Net] 0 59.54 46.8 751.7
Long Term Loans And Advances 219.37 215.75 233.13 207.91
Other Non-Current Assets 458.89 547.53 496.68 442
Total Non-Current Assets 8733.44 9246.63 9129.48 9635.85

Current Investments 539.52 638.18 1039.74 2011.58

Inventories 2918.47 2653.5 3037.98 2868.41
Trade Receivables 1896.41 1938.79 2336.32 3168.73
Cash And Cash Equivalents 53.01 58.46 227.53 174.56
Short Term Loans And Advances 10.92 9.53 17.74 5.04
OtherCurrentAssets 1049.04 1046.88 1278.86 1250.33
Total Current Assets 6467.37 6345.34 7938.17 9478.65

Total Assets 15239.4 15607.3 17095 18418.7

29
4.2.2 Financial Statements of Sun Pharmaceutical Industries Ltd.

Profit and Loss Statement (year ended March)

Particulars FY 16 FY 17 FY 18 FY 19
Net Revenue from sales 7614.46 7683.96 9006.25 10303.2
COGS 3,121.37 3,297.09 3,570.89 3,673.26
Gross Profit 4,493.09 4,386.87 5,435.36 6,629.95
Gross Margin 59.0% 57.1% 60.4% 64.3%
Staff Cost 1480.51 1499.88 1625 1571.34
Other Operating expenses 3447.56 2773.02 2832.1 3302.35
Total Operating Expenses 4928.07 4272.9 4457.1 4873.69
EBITDA -434.98 113.97 978.26 1,756.26
EBITDA Margin -5.7% 1.5% 10.9% 17.0%
Less: Dep &Amortization 463.98 422.28 487.24 552.95
EBIT -898.96 -308.31 491.02 1,203.31
EBIT Margin -11.8% -4.0% 5.5% 11.7%
Less: Interest Expenses 530.64 223.57 388.31 540.92
Add: Other Income 431.82 431.82 1128.04 1271.44
PBT -997.78 -100.06 1,230.75 1,933.83
Total Tax 64.68 6.04 925.89 1161.53
Rep PAT -1,062.46 -106.10 304.86 772.30

30
 Balance Sheet as on March
Equity and Liabilities FY 16 FY 17 FY 18 FY 19
Equity Share Capital 240.66 239.93 239.93 239.93
Reserve and Surplus 21242.4 20772.5 22082.7 22603.7
Equity shareholders funds 21483.1 21012.5 22322.6 22843.6

Non-Current Liabilities
Long Term Borrowings 1929.27 760.64 1564.69 1422.5
Deferred Tax Liabilities [Net] 0 0 0 0
Other Long-Term Liabilities 13.57 0.68 0.91 19.12
Long Term Provisions 1924.55 1132.83 345.18 157.07
Total Non-Current liabilities 3867.39 1894.15 1910.78 1598.69

Current liabilities
Short Term Borrowings 3733.72 4054.04 5213.81 4428.05
Trade Payables 1772.44 2072.6 2565.97 2154.92
Other Current Liabilities 1906.83 2988.58 2125.89 4145.13
Short Term Provisions 1425.79 1847.43 2652.75 2543.73
Total Current Liabilities 8838.78 10962.7 12558.4 13271.8

Total Liabilities 34189.3 33869.3 36791.8 37714.1

Fixed assets
Capex -1678.9 922.46 -250.31
Gross Fixed Assets 6627.75 4948.81 5871.27 5620.96
Depreciation 3059.58 910.18 1312.74 0
Net Fixed Assets 3568.17 4038.63 4558.53 5620.96
Cap Work in progress 767.73 1055.11 830.39 456.25
Investments 22283.1 19293.3 18310.5 17656.2
Deferred Tax Assets [Net] 0 749.06 751.7 751.7
Long Term Loans and Advances 2165.47 4.87 3.42 1
Other Non-Current Assets 61.75 2294.73 2518.57 2514.54
Total Non-Current Assets 28846.2 27435.7 26973.1 27000.6

Current Investments 82.49 40.01 44.76 247.95

Inventories
Trade Receivables
Cash and Cash Equivalents
Short Term Loans and Advances
Other Current Assets
Total Current Assets
2132.16 2308.28 2135.64 2792.62
2016.81 2714.7 5271.44 5031.47
169.39 170.28 155.27 340.77
745.03 13.85 52.05 294.73
197.82 1141.07 1916.05 2462.23
5343.7 6388.19 9575.21 11169.8

Total Assets 34189.9 33869.3 36791.8 37714.1

31
4.3 Analysis and Interpretation of Data collected

4.3.1 Valuation of CIPLA

1.Price to Sales Model

Particulars Mar'16 Mar'17 Mar'18 Mar'19
Sales 12117.72 10768.49 11389.9 12374.01
Year on Year Growth -11.13 5.77 8.64
Estimated Growth Rate 10%

As there is year on year growth on Mar’18 by 5% and on Mar’19 by 8% so I had estimated a

10% growth for the next year on the basis of past performance to calculate the estimated sales
for next year.

Price to Sales Ratio Current Market Capitalisation 85152.9 6.88

Sales 12374.01

Using the price to sales ratio, will calculate the target price of the company.

Estimated Sales 13611.411

Forecasted Market
Capital 93668.19
No. of shares outstanding 161
Target Price 581.79

Using the growth rate of 10% the estimated sales is calculated and then with the price to sales
multiple forecasted market capitalisation is calculated to find out the target price. And
comparing it with the current market price of Rs 480.15 it is overvalued.

2.EV/EBITDA

Particulars Mar'17 Mar'18 Mar'19

EV
Price 592.95 545.45 528.9
No. of shares 161 161 161
Market Capitalisation 95464.95 87817.45 85152.9
Total Debt 324.33 174.43 0
Cash and cash
equivalents 58.46 227.53 174.56
Total 95730.82 87764.35 84978.34

32
 EBITDA 1,726.11 2,530.43 3,079.52
EV/EBITDA 55.46 34.68 27.59

Through the data from the financial statements have calculated the Enterprise Value and
EBITDA to find out the EV/EBITDA multiple for calculating the target price for next year.

Estimated Growth Rate 15%

Expected EBITDA 3541.448
Forecasted EV 97725.091
No of shares 161
Target Price 606.99

I have estimated a 15% growth rate in EBITDA to calculate the expected EBITDA for next
year and through the EV/EBITDA of Mar’19 and the expected EBITDA have calculated the
target price which indicates the price is overvalued.

3.P/E Model

Particulars FY15 FY16 FY17 FY18 FY19 FY 20

No of Outstanding
Shares 80.295 80.34 80.45 80.51 80.57 80.57
Face Value 2 2 2 2 2 2
Rep PAT 1254.22 1395.44 1042.41 1419.35 1509.61 1,171

EPS 15.62 17.37 12.96 17.63 18.74 14.53

P/E 45.61 29.47 45.76 30.94 28.23 36.00

Stock price 712.45 511.95 592.95 545.45 528.90 523.18

Average P/E 36.00

The P/E model is used to calculate the target price for the next year, for this first I have
calculated the expected PAT through the year on year growth and then through that have
calculated the expected EPS which is then used with the average P/E to calculate the target
price.

33
4.3.2 Valuation of Sun Pharmaceutical Industries Ltd.

1.Price to Sales Model

Particulars Mar'16 Mar'17 Mar'18 Mar'19

Sales 7614.46 7683.96 9006.25 10303.21
Year on Year Growth 0.91 17.21 14.40
Estimated Growth
Rate 15%

As there is year on year growth on Mar’18 by 17% and on Mar’19 by 14.4% so I had estimated
a 15% growth for the next year on the basis of past performance to calculate the estimated sales
for next year.

Price to Sales Ratio Current Market Capitalisation 114890.48 11.1509404

Sales 10303.21

Using the price to sales ratio, will calculate the target price of the company.

Estimated Sales 11848.692

Forecasted Market Capital 132124.05
No. of shares
outstanding 239.93
Target Price 550.68

Using the growth rate of 15% the estimated sales is calculated and then with the price to sales
multiple, forecasted market capitalisation is calculated to find out the target price. And
comparing it with the current market price of Rs 449.45 it is overvalued.

2.EV/EBITDA
Particulars Mar'17 Mar'18 Mar'19
EV
Price 688.15 495.1 478.85
No. of shares 239.93 239.93 239.93
Market Capitalisation 165107.83 118789.34 114890.481
Total Debt 4814.68 6778.5 5850.55
Cash and cash
equivalents 170.28 155.27 340.77
Total 169752.23 125412.57 120400.261

34
 EBITDA 545.79 2,106.30 3,027.70
EV/EBITDA 311.02114 59.541648 39.7662452

Through the data from the financial statements have calculated the Enterprise Value and
EBITDA to find out the EV/EBITDA multiple for calculating the target price for next year.

Estimated Growth Rate 15%

Expected EBITDA 3481.86
Forecasted EV 138460.30
No of shares 239.93
Target Price 577.09

I have estimated a 15% growth rate in EBITDA to calculate the expected EBITDA for next
year and through the EV/EBITDA of Mar’19 and the expected EBITDA have calculated the
target price which indicates the price is overvalued.

3.P/E Model

Particulars FY15 FY16 FY17 FY18 FY19 FY 20 E

No of Outstanding
Shares 207.12 240.66 239.93 239.93 239.93 239.93
Face Value 1 1 1 1 1 1
Rep PAT 5488.21 5656.86 7836.3 2633.79 3209.32 3,651

EPS 26.50 23.51 32.66 10.98 13.38 15.22

P/E 38.64 34.89 21.07 45.10 35.80 35.10

Stock price 1,023.90 820.00 688.15 495.10 478.85 534.13

Average P/E 35.10

The P/E model is used to calculate the target price for the next year, for this first I have
calculated the expected PAT through the year on year growth and then through that have
calculated the expected EPS which is then used with the average P/E to calculate the target
price.

35
4.3.3 EPS vs MPS

CIPLA
20.50 800
20.00 700
19.50
19.00 600
18.50 500
18.00

MPS
EPS

400
17.50
17.00 300
16.50 200
16.00
15.50 100
15.00 0
Apr'14

Apr'15

Apr'16

Apr'17

Apr'18
Jan'15

Jan'16

Oct'16
Jan'17

Jan'18

Jan'19
July'14

July'15

July'16

July'17

July'18
Oct'14

Oct'15

Oct'17

Oct'18
EPS MPS

As it can be seen that though there is fluctuation in the market price but it is not affecting the
earning price per share and it is increasing at an increasing rate. It is also because of increase
in profit year on year and also because of rise in revenue.

SUN PHARMA
16.00 1200
14.00
1000
12.00
800
10.00
MPS
EPS

8.00 600
6.00
400
4.00
200
2.00
0.00 0
Apr'14

Jan'15
Apr'15

Jan'16
Apr'16

Jan'17
Apr'17

Jan'18
Apr'18
July'18

Jan'19
July'14

July'15

July'16

July'17
Oct'14

Oct'15

Oct'16

Oct'17

Oct'18

EPS MPS

Here it can be seen that though there is fluctuation in market price which was rising in the
initial stage but gradually started falling. Earning price is continuously falling, so it can be
concluded that the fall in market price is directly affecting the earning per share.

36
5. Findings

5.1 Cipla
• Net sales stood at INR 12374 crores which was up by 7%. The top line was impacted
due to lower sales from domestic as well as from US business. However, the same
was offset by strong sales growth from the South Africa’s and emerging markets.
• Share of specialty medicine will continue to increase and is projected to reach 50% of
the total spending by 2023.
• Spending is expected to reach USD 1.5 trillion by 2023, representing CAGR 3% to
6% over next five years.
• Profit increased by 8% to 1528 crores in FY18-19 (highest PAT in 6 years)
• Employees expenses expected to rise by 6%, other expenses by 8%, finance cost by
47%.
• The company will maintain its R&D spend between 7% to 8% in FY20 of total sales
to fund its ongoing clinical trials.
• CIPLA has guided that the domestic business of the company would see growth of
10% to 13% going ahead mainly aided by health product mix and shifting its focus
from generalization to therapy wise focus.
• CIPLA has focused on building strong specialty portfolio for US and is looking
forward to acquire assets in neurology and respiratory.

5.2 Sun Pharmaceutical Industries Ltd.

• Global spending on medicines crossed USD 1.2 trillion and is projected to grow at
CAGR of 3% to 6% in the next five years.
• For FY 20 the company expects its consolidated revenue to grow by low to mid-teens,
while R&D investments are estimated at 8% to 9%.
• Revenue from the US increased by 22% and from the Indian branded generic business
declined by 8.5%.
• Revenue from emerging markets increased by 11% and key markets which
contributed to the growth were Romania, South Africa, Brazil, Malaysia and
Bangladesh.
• Key growth drivers include increase in generic sales, incremental contribution from
specialty product launches and a favourable exchange rate.
• As a part of this strategy shift, the Company undertook a one-time adjustment
relating to sales return from the distributor and lower invoicing to this distributor,
totalling 10,850 Million. This has led to the year-on-year decline in sales. Excluding
this one-time impact, the India formulations revenues would have grown by about 5%
year on year.
• The stock will remain under pressure in near term due to challenges related to growth
and margin.

37
6.References

1. https://www.proclinical.com/blogs/2017-6/opportunities-challenges-for-
pharmaceutical-industry-in-2017
2. https://www.nseindia.com/
3. https://www.bseindia.com/
4. https://www.quora.com/What-is-future-of-the-Indian-pharma-industry
5. https://www.ibef.org/industry/pharmaceutical-india.aspx
6. https://www.omicsonline.org/open-access/an-analysis-of-indian-pharma-trade-and-
future-challenges-2153-2435-1000409.
7. https://www.pwc.com/gx/en/pharma-life-sciences/pdf/global-pharma-looks-to-india-
final.
8. https://www.moneycontrol.com/stocks/marketinfo/marketcap/bse/pharmaceuticals.ht
ml

38