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Fundamental Analysis of Indian Pharmaceutical Companies
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Fundamental Analysis of Indian Pharmaceutical Companies
Abstract
Estimation of real worth of a stock is made by considering

the earning potential of the company which depends on
investment environment and factors relating to specific
industry, competitiveness, quality of management,
Dr. Ashok Kumar operational efficiency, profitability, capital structure and
Panigrahi, dividend policy. For investing in a company many people
Associate Professor in use fundamental analysis for the selection and technical
Finance, analysis to make their buy and sell decisions. It relates to the
Mail ID – examination of the intrinsic worth of a company to find out
panigrahi.ak@gmail.com
whether the current market price is fair or not, whether it is
Mob. - 8888810975 overpriced or underpriced. It is believed that analyzing the
economy, strategy, management, product, financial status
and other related information will help to choose shares that
Raksha Sharma will outperform the market and provide consistent gains to
(M.Pham+MBA)
the investor. It is the examination of the underlying forces
Himani Dhande that affect the interest of the economy, industrial sectors and
(M.Pharm+MBA)
companies. Here an attempt has been made to analyze the
fundamental analysis through analyzing the financial
NMIMS University,
Shirpur. performance of ten selected Pharma and Healthcare
companies by using various statistical techniques. Torrent
Pharmaceuticals stands as No.-1 company followed by
Piramal which stood as the second.
Keywords: Pharmaceutical Company, Fundamental analysis, Ratios, Intrinsic value.
GLOBAL MANAGEMENT HORIZON

Volume – VII, Jan - June 2018, ISSN 2249-6211
GLOBAL INSTITUTE OF MANAGEMENT, AMRITSAR
Introduction
The pharmaceuticals manufacturing is one of the core industries in India and is optimistic of
posting good sates in the coming few years. The total revenue generated by pharmaceutical
companies in India in the last financial year was more than $20 billion, which is expected to
cross the mark of $26 billion by 2017. The Pharmaceutical industry is the third largest in terms
of volume in India. Pharmaceutical industries have been topmost players in the health care
segment in an epoch of aging populations, rising health care costs, and the ongoing development
of new and extremely profitable medicines. Therefore, the investment in shares and securities of
pharmaceutical companies seems to be cost-effective. An investment is an asset or item that is
purchased with the hope that it will generate income or will appreciate in the future. In an
economic sense, an investment is the purchase of goods that are not consumed today but are used
in the future to create wealth. It is mainly done in order to ensure safety and also hedge against
inflation. Investment in various types of assets is an interesting activity that attracts people from
all walks of life irrespective of their occupation, economic status, education and family
background. Stocks are a unique investment because they allow us to take limited ownership in a
company. Because of this, the returns are potentially greater and they have a history of being a
judicious way to invest our money. Investments in securities are profitable as well as rousing. It
is indeed rewarding, but involves a great deal of risk and calls for precise knowledge as well as
inventive skill. In such investments, both rational and emotional responses are involved.
Investment in financial securities is one of the most risky as well as the best avenues of
investment. Investors have a plethora of options available to them ranging from mutual funds,
equities to fixed income instruments like bonds and bank deposits. Choosing the right one
depends upon the risk and return characteristics of the securities. So, before making investments
an investor should analyze the risk and return associated with the particular investment and how
well it is performing. Now, risk return analysis and security analysis gain more importance under
these circumstances.
The effectiveness of the companies in the portfolio will be confirmed by analytical studies, i.e.
both security analysis and portfolio analysis. Security analysis is accompanied by scrutinizing
fundamental and technical aspects. Fundamental analysis is to judge the future price of a stock
which an investor desires to buy. It also analyses the intrinsic worth of a company and to relate
out whether the current market price is fair or not, whether it is overpriced or under-priced. It
believes that analyzing the economy, strategy, management, product, financial status and other
related information will help to choose shares that will outperform the market and provide
consistent gains to the investor. It is the examination of the underlying forces that affect the
interest of the economy, industrial sectors and companies. It tries to forecast the future
movement of the capital market using signals from the Economy, Industry and Company. It
requires an examination of the market from a broader perception. The presumption behind
fundamental analysis is that a thriving economy fosters industrial growth, which leads to the
development of companies. Estimate of real worth of a stock is made by considering the earning
potential of the company which depends on the investment environment and factors relating to
specific industries, competitiveness, quality of management, operational efficiency, profitability,
capital structure and dividend policy. Many people use fundamental analysis to select a company
to invest in, and technical analysis to help make their buy and sell decisions. It also involves a
detailed examination of the company's competitors, the industry or sector.
Fundamental analysis involves:

1. Company Analysis - Company analysis is usually made by the investors to measure
securities, collecting data related to the firm’s profile, products and services as well as
profitability. It is also known as ‘fundamental analysis.’ A firm analysis incorporates
basic data about the firm, like the mission statement and apparition and the goals and
values. During the process of firm analysis, an investor also considers the firm’s history,
focusing on events which have contributed in shaping the firm.
2. Economic Analysis- It focuses on broad economic factors which affect the stock market
as a whole or industry group of securities.The practice of Macro-Fundamental Analysis
starts at the overall performance of the economy, its impact on industry groups and
finally down to specific companies in the industry groups
3. Industry Analysis - Industry analysis is a tool which facilitates a company's

understanding of its position relative to other companies that produce similar products or

services. Understanding the forces at work in the overall industry is an important
component of effective strategic planning.
Literature Review
Technical analysis and fundamental analysis are the two main schools of thought in the financial
markets. Technical analysis uses statistics generated by market activities like stock‟s past prices
or volume to predict future price movements. Conversely, fundamental analysis looks at
economic factors to forecast price movements of stocks in the future.
Suresh A.S. (2015) tried to emphasize the importance of fundamental and technical analysis on
Indian stock market. In fundamental analysis, the author stressed investors to know about macro-
economic environment and development of the country, future prospects of the industry to which
the firm belongs and projected performance of the company. As far as technical analysis is
concerned, the author advised few tools like a line chart, bar chart, point and figure chart, trend
chart, moving average analysis, relative strength, resistance and support levels, break-out theory,
head and shoulders pattern, double top and bottom formation to predict future stock prices.
Fundamental analysis was the only investment method that was given any sincerity in the past.
Now that has changed as the arrival of high-speed computing has made a technical analysis
easier. Many large investment firms use black box trading, or computer modeling, to determine
their entry and exit points. However, it was found that financial managers are not able to use the
right tools to analyze future market trends.
Shirur S. (2013) stated the reason why finance managers arrive at wrong decisions like the
subprime crisis. The reason explained by author was, investors are dealing with the fundamental
analysis issues while the tools used are applicable for technical analysis. The author also
suggested that instead of segregating risk into systematic and unsystematic risk, it should be
segregated into bankruptcy and liquidity risk, to determine the true value of the company, which
helps investors to determine in which security to invest. The primary motivation for this research
is to identify mispriced securities. However, these authors demonstrate that the information in
the earnings prediction signals is helpful in generating abnormal stock returns.

Sharma and Sharma (2009) examined whether fundamental analysis signals (traditional and
growth) on growth stock differentiate the extreme performers. 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 fundamental
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.
Scope of the Study
The scope of the study is to conduct a fundamental analysis of the top Ten Indian Companies viz.
Sun Pharma, Lupin, Dr Reddys, Cipla, Aurobindo, Cadila, Piramal, Glenmark, GlaxoSmithkline
and Torrent for a period of 3 years from 1st April 2013 to 31st March 2016
Objectives of the Study
The purpose of the study is to conduct a fundamental analysis of the top Ten Indian Companies
viz. Sun Pharma, Lupin, Dr Reddys, Cipla, Aurobindo, Cadila, Piramal, Glenmark,
GlaxoSmithkline and Torrentto with an objective:

 To analyze the financial performance of sample companies which represents the Indian
Pharmaceutical Industry by using Ratio Analysis and to find out how fundamentally
strong they are.
Research Methodology
This study is partially descriptive in nature and partially analysis. The main purpose of the
descriptive research is the description of the state of affairs as it exists in the present. The main
characteristic of the descriptive research is that the researcher has no control over the variables.
This Methodology is most suitable for study of fundamental analysis. Analysis is conducted for
valuation of shares.
Data Source
The data was mostly collected from the annual reports of companies, company websites and
company brochures and from moneycontrol.com.
Sampling Plan
 Sampling size :A total of ten companies are selected from the Pharmaceutical
sector which is listed in BSE and NSE for last 3 years from 1st April 2013 to 31st
March 2016
 Sampling Procedure: The data for this study is selected on the basis of
convenience sampling method. Among the companies listed with major stock
exchange of India namely, Bombay Stock Exchange and National Stock
Exchange of India, top 10 pharmaceutical companies on the basis of market
capitalization are selected. The following are the selected Pharmaceutical
companies of this study:
1. Sun Pharma
2. Lupin
3. Dr Reddys
4. Cipla
5. Aurobindo Pharma
6. Cadila
7. Piramal
8. Glenmark
9. GlaxoSmithkline
10. Torrent Pharma
Tools for the Analysis
For analyzing the data, the widely used tool Ratio Analysis is used. Ratio analysis is a
technique adapted to analysis and interprets general financial statements to assess the
profitability position. Percentage analysis is taken for analyzing primary data, Tables and
charts are also used for analysis. Ratios are calculated for current year and are then
compared with previous years.
Ratio Analysis
 Current Ratio
Current ratio is the most common ratio for measuring liquidity. It represents the ratio of
current assets and current liabilities. It is also called working capital ratio. It is calculated
by dividing current assets by current liabilities.
= /
Company Current Ratios (Rs in Cr)
2016 2015 2014 2013

Sun Pharma 0.60 0.49 1.40 3.37
Lupin 3.15 3.89 3.45 2.01
Dr.Reddy’s 2.10 2.22 2.17 1.63
Cipla 2.10 1.83 2.11 3.02
Aurobindo Pharma 1.54 1.61 1.53 1.31
Cadila 1.52 1.35 1.33 1.09

Piramal 0.41 1.38 0.53 0.80
Glenmark 1.64 1.47 1.30 0.83
Glaxo Smithkline 1.54 1.99 2.56 2.79
Torrent Pharma 2.07 2.06 2.29 1.86
Interpretation: In this all companies haven’t maintained the ideal current ratio, while the
highest ratio is 3.89 of Lupin in the year 2015 while the 3.45 in the 2014.
 Quick Ratio
This ratio is sometimes known as Acid Test or Liquidity Ratio. It is the relation between quick
asset and quick liability. It is determined by quick asset divided by quick liability.The term quick
asset refers to current assets which can be converted into cash immediately.Quick ratio is a true
test for finding business solvency.
= /
Company Quick Ratios (Rs in Cr)
2016 2015 2014 2013

Sun Pharma 0.36 0.30 1.15 2.61
Lupin 3.15 3.89 3.45 2.01
Dr.Reddy’s 1.75 1.86 1.78 1.25
Cipla 2.10 1.83 2.11 3.02
Aurobido Pharma 1.54 1.61 1.51 1.39
Cadila 1.52 1.34 1.33 1.09
Piramal 0.36 1.29 0.49 0.75
Glenmark 1.30 1.17 1.13 0.68

Torrent Pharma 1.43 1.47 1.69 1.23
Interpretation- In this all the above companies have maintained the liquid asset position except
the Sun Pharma in the year 2016, 2015 and Piramal in year 2016, 2014 and the highest is Lupin
with 3.89 in year 2016 while 3.45 in the year 2014.
 Debt-Equity Ratio
The relation between borrowed funds and owners capital is a popular measure of the long term
financial solvency of the firm. This relationship is shown by the debt-equity ratio. This ratio
indicates the relative proportion of debt and equity in financing the assets of the film.
− − = ( )/
Company − − (Rs in Cr)
2016 2015 2014 2013

Sun Pharma 0.26 0.24 0.33 0.01
Lupin 0.03 0.00 0.02 0.11
Dr.Reddy’s 0.27 0.29 0.29 0.20
Cipla 0.09 0.12 0.09 0.11
Cadila 0.17 0.28 0.39 0.57
Piramal 1.02 0.33 0.64 0.42

Glenmark 0.11 0.07 0.12 0.12
Torrent Pharma 0.49 0.84 0.42 0.35
Interpretation: No company has maintained the standard debt equity ratio for the following years
while Piramal is the only company with the highest debt-equity ratio i.e. 1.02 in the year 2016.
 Earnings Before Interest And Tax (EBIT)
An indicator of a company's profitability, calculated as revenue minus expenses, excluding tax

and interest. EBIT is also referred to as "operating earnings", "operating profit" and "operating
income", as you can re-arrange the formula to be calculated as follows:
EBIT = Revenue - Operating Expenses
Also known as Profit before Interest and Taxes (PBIT), and equals Net Income with interest and
taxes added back to it.
EBIT (Rs in Cr)
Company 2016 2015 2014 2013

Sun Pharma -1067.91 -1558.97 -2801.09 663.03
Lupin 2885.07 2397.35 2324.22 1260.43
Dr.Reddy’s 1354.50 1679.40 1932.80 1932.80
Cipla 1398.03 181.09 1388.34 1507.11
Aurobido Pharma 1619.67 1516.35 1172.09 495.99
Cadila 1977.30 1271.10 903.60 498.60

Piramal 1061.15 372.74 -370.00 -231.56
Glenmark 1724.61 1400.28 501.92 379.95
Torrent Pharma 1763.34 623.18 762.34 546.42
Interpretation- The EBIT of Glenmark, Aurobindo, Cadila, Lupin has shown consistent growth
in the last 3 years, the highest is shown by Lupin 2885.07 in the year 2016 and 2397.35 in the
year 2015 while the lowest was shown by Piramal -231.56 in the year 2013.
Asset Turnover Ratio

This ratio indicates the extents to which the investments in assets contribute towards the
sales. The ratio is calculated as follows :
Asset Turnover Ratio= /
Company Asset turnover ratio (%)
2016 2015 2014 2013

Sun Pharma 22.27 21.41 20.44 26.30
Lupin 79.34 88.59 101.59 101.08
Dr.Reddy’s 58.13 60.83 67.05 70.34
Cipla 75.12 66.69 72.58 71.36
Cadila 80.37 72.02 64.74 66.22
Piramal 13.16 14.61 10.89 8.58
Glenmark 59.59 66.47 54.40 50.16

Torrent Pharma 74.07 53.39 77.66 80.51
Interpretation- Lupin has the highest asset turnover ratio in the 2014and 2013and GSK also
shows the highest growth in 2015 and2016. While the lowest is the 8.58 of Piramal in the year
2013.
 Return On Total Asset

Profitability can be measured in terms of relationship between net profit and total assets. This
ratio is also known as return on gross capital employed- It measures the profitability of
investment.
= / ∗
Company Return on total assets
2016 2015 2014 2013

Sun Pharma -3.13 -3.93 -20.44 5.58
Lupin 20.29 21.77 26.41 17.88
Dr.Reddy’s 7.71 10.20 13.32 10.55
Cipla 8.72 7.77 0.09 0.11
Cadila 22.58 17.32 14.47 8.98
Piramal 3.97 2.26 -2.18 -1.41
Glenmark 14.31 13.16 10.25 9.93
Torrent Pharma 24.05 9.57 17.59 16.28

Interpretation: The highest performer in the total assets is the Torrent, the second highest is
Cadila, and the third highest is Lupin.The least performer is the Cipla in 2014 and Sun Pharma in
2016 and 2015.
 Return On Net Worth

Return on Net worth is used in finance as a measure of a company's profitability.lt reveals
how much profit a company generates with the money that the equity shareholders have
invested. This ratio is useful for comparing the profitability of a company to that of other
firm in the same industry.
= / ∗
Company Return On Net Worth
2016 2015 2014 2013

Sun Pharma -4.99 -6.48 -38.18 6.63
Lupin 24.88 26.55 33.30 26.00
Dr.Reddy’s 11.67 15.79 20.71 16.25
Cipla 11.33 10.65 13.21 16.33
Cadila 32.21 28.08 24.89 17.12
Piramal 8.71 3.25 -4.05 -2.19
Glenmark 20.15 20.34 14.92 15.30
Torrent Pharma 47.83 23.03 33.29 33.09

Interpretation: - Torrent has shown the highest return on networth in all the years while the
2015 was the only year with its lowest networth. And second highest is the Cadila, with the
lowest net worth in 2013. Sun Pharma has the lowest return on net worth in the last three years
and the Piramal showed the lowest net worth in 2014 and 2013.
 Dividend Per Share
The sum of declared dividends for every ordinary share issued. Dividend Per share (DPS) is the
total dividends paid out over an entire year(including interim dividends but not including special
dividends)divided by the number of outstanding ordinary shares issued.
= /
Company Dividend per share
2016 2015 2014 2013

Sun Pharma 1.00 3.00 1.50 5.00
Lupin 7.50 7.50 6.00 4.00
Dr.Reddy’s 20.00 20.00 18.00 15.00
Cipla 2.00 2.00 2.00 2.00
Cadila 3.20 12.00 9.00 7.50
Piramal 17.50 20.00 52.50 17.50
Glenmark 2.00 2.00 2.00 2.00
Torrent Pharma 35.00 11.25 10.00 23.00

Interpretation :- The following inferences from the table are as follows- the highest is GSK
followed by Piramal as second highest DPS, while the third highest DPS is shown by Torrent
and then Dr Reddy’s, Sun Pharma has the lowest DPS in all the 3 years.
 Dividend pay-out Ratio

The percentage of earnings paid to shareholders in dividends. The dividend pay-out ratio
provides an idea of how earnings support the dividend payments. More mature companies tend
to have a higher pay-out ratio.
= / e
Company Dividend payout ratio
2016 2015 2014 2013

Sun Pharma -22.42 -48.97 -10.98 100.24
Lupin 11.71 14.06 11.57 14.20
Dr.Reddy’s 25.13 20.29 15.84 20.13
Cipla 11.49 13.59 11.56 10.65
Cadila 16.59 19.32 20.39 30.80
Piramal 28.45 92.59 -244.85 -130.41
Glenmark 4.00 5.38 12.50 14.03
Torrent Pharma 33.58 30.54 22.20 35.61

Interpretation: - GSK has the highest dividend payout ratio in the financial year 2016, 2015. It
has maintain its consistency for both the years and the second highest is SunPharma in the year
2013 but further the growth declined and it becomes the lowest performer.
 Earnings Per Share
The portion of a company's profit allocated to each outstanding share of common stock. Earnings
per share serve as an indicator of a company's profitability .This ratio helps in the assessment of
the profitability of the firm from the stand point of equity share holders. This measures the profit
available to the equity share holders per share.
= /
Company Earnings per share
2016 2015 2014 2013

Sun Pharma -4.50 -6.10 -13.70 5.00
Lupin 64.10 53.41 51.88 28.19
Dr.Reddy’s 79.42 98.60 113.67 74.54
Cipla 17.41 14.71 17.29 18.77
Cadila 19.31 62.08 44.13 24.35
Piramal 61.49 21.60 -21.40 -13.40
Glenmark 52.31 37.14 16.01 14.26
Torrent Pharma 104.20 36.83 45.05 64.58

Interpretation: Dr. Reddy’s showed the highest EPS in all the five years, it shows the
profitability of the company and it is very consistent, second highest is the Torrent with 104.20,
and the lowest is showed by Sun Pharma.
 Net Profit Margin
Net profit divided by net revenues, often expressed as a percentage. This number is an indication
of how effective a company is at cost control. The higher the net profit margin is the more
effective the company is at converting revenue into actual profit. The net profit margin is a good
way of comparing companies in the same industry, since such companies are generally subject to
similar business conditions.
= / ∗
Company Net profit margin
2016 2015 2014 2013

Sun Pharma -14.09 -18.38 -99.99 21.23
Lupin 25.57 24.58 25.99 17.69
Dr.Reddy’s 13.26 16.77 19.86 15.00
Cipla 11.61 11.65 14.80 18.37
Cadila 28.10 24.05 22.35 13.56
Piramal 30.17 15.52 -20.00 -16.50
Glenmark 24.01 19.81 18.81 19.80
Torrent Pharma 32.48 17.93 22.65 19.75

Interpretation: - Cadila has the highest NPM in all the years, while the Lupin is in the second
position and the lowest are shown by Sun Pharma and the Piramal .
Intrinsic Value
Company Intrinsic value

SunPharma 365.97
Lupin 384
Dr Reddy 1786.50
Cipla 510.6
Aurobindo 545.64
Cadilla 286.00
Piramal 2395.07
GSK 682.12
Torrent 1880.58
Ranking of companies based on different variable
Company DPS ROE NMP EPS Intrinsic Total

value
Sun Pharma 9 10 10 10 8 47
Lupin 5 3 4 3 7 22
Dr.Reddy’s 3 7 8 2 3 23
Cipla 8 8 9 9 6 40
Aurobindo 7 4 6 7 5 29
Pharma
Cadila 6 2 3 8 9 28
Piramal 4 9 2 4 1 19
Glenmark 8 6 5 5 - 24

Glaxo 1 5 7 6 4 23
Smithkline
Torrent 2 1 1 1 2 7
Pharma
Ranks: Rank 1= 10, Rank2= 9, Rank3=8, Rank4= 7, Rank 5= 6, Rank 6= 5,Rank 7= 4, Rank
8=3, Rank9=2, Rank 10=1.
Findings: No company has maintained the standard current ratio, except Dr. Reddy’s, Cipla
and Torrent. While Lupin shows the highest current ratio in 2016, 2015 and 2014. The quick
ratio is maintained, by all the companies except Sun Pharma and Piramal. The highest quick ratio
is shown by Lupin in 2016 and 2014. All the company has maintained a standard debt equity
ratio, except Piramal which shows the highest debt equity ratio in 2016. In the debt equity,
Glennmark, Aurobindo, Cadila, Lupin has shown consistent growth in the last 3 years, while the
highest is shown by Lupin in 2016 and 2015 and lowest is of Piramal in 2013.The assets turnover
ratio is quite satisfactory by all companies in which Lupin is the highest in 2013 and 2014,
followed by GSK and second highest in 2015 and 2016. The lowest is Piramal in 2013. The
highest performer in total assets is the Torrent followed by Cadila at second and at third is the
Lupin. The poor performers are Cipla in 2014 and Sun Pharma in 2014 and 2016. All the
companies’ show satisfactory ROE in which the highest is Torrent in 2015 and the lowest is
Piramal in 2014 and 2013. The highest DPS is shown by GSK, followed by Piramal and Sun
Pharma is highest in all the 3 years. GSK has a higher dividend payout ratio in 2016 and 2015
and the Sun Pharma is the lowest performer. According to the ranking of the companies based on
various variables Torrent is on the top most rank followed by Piramal Healthcare having 2nd
position. Sun Pharma has the lowest rank among all the ten companies followed by Cipla.
Conclusion: The economic growth of India is growing rapidly and has shown remarkable
growth in the pharmaceutical industry. The production of new drugs and various methods and
techniques in vaccines are the key strengths of Pharma industry in India. Fundamental analysis
suggests and insists, which steps should be undertaken in terms of purchasing, and selling of

shares, on the basis of market? The fundamental analysis strengthens the investor to make the
right decision for the company.
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Fundamental Analysis of Indian Pharmaceutical Companies

Article · June 2018

The user has requested enhancement of the downloaded file.

Estimation of real worth of a stock is made by considering

Keywords: Pharmaceutical Company, Fundamental analysis, Ratios, Intrinsic value.

GLOBAL MANAGEMENT HORIZON

Fundamental analysis involves:

3. Industry Analysis - Industry analysis is a tool which facilitates a company's

GLOBAL MANAGEMENT HORIZON

GLOBAL MANAGEMENT HORIZON

Scope of the Study

Objectives of the Study

GLOBAL MANAGEMENT HORIZON

Tools for the Analysis

Company Current Ratios (Rs in Cr)

2016 2015 2014 2013

GLOBAL MANAGEMENT HORIZON

Torrent Pharma 2.07 2.06 2.29 1.86

Company Quick Ratios (Rs in Cr)

2016 2015 2014 2013

GLOBAL MANAGEMENT HORIZON

Torrent Pharma 1.43 1.47 1.69 1.23

Company − − (Rs in Cr)

2016 2015 2014 2013

GLOBAL MANAGEMENT HORIZON

Torrent Pharma 0.49 0.84 0.42 0.35

 Earnings Before Interest And Tax (EBIT)

An indicator of a company's profitability, calculated as revenue minus expenses, excluding tax

EBIT = Revenue - Operating Expenses

EBIT (Rs in Cr)

Company 2016 2015 2014 2013

GLOBAL MANAGEMENT HORIZON

Torrent Pharma 1763.34 623.18 762.34 546.42

Asset Turnover Ratio

Asset Turnover Ratio= /

Company Asset turnover ratio (%)

2016 2015 2014 2013

GLOBAL MANAGEMENT HORIZON

 Return On Total Asset

Company Return on total assets

2016 2015 2014 2013

Torrent Pharma 24.05 9.57 17.59 16.28

GLOBAL MANAGEMENT HORIZON

 Return On Net Worth

Company Return On Net Worth

2016 2015 2014 2013

Torrent Pharma 47.83 23.03 33.29 33.09

GLOBAL MANAGEMENT HORIZON

 Dividend Per Share

Company Dividend per share

2016 2015 2014 2013

Torrent Pharma 35.00 11.25 10.00 23.00

GLOBAL MANAGEMENT HORIZON

 Dividend pay-out Ratio

Company Dividend payout ratio

2016 2015 2014 2013

Torrent Pharma 33.58 30.54 22.20 35.61

GLOBAL MANAGEMENT HORIZON

 Earnings Per Share

Company Earnings per share

2016 2015 2014 2013

Torrent Pharma 104.20 36.83 45.05 64.58