Group 12B

Pharmaceutical
Sector

By,

169278097 P Muthu Siddharthan

169278098 Roopteja Tamatam
169278101 Ajagiya Jigar Laxmanbhai
169278103 Kuvam Bansal
 Founded in 1979 Vision: Founded in 1986 Mission:
We push the Aurobindo's mission is to
Pharmaceutical company Headquartered in Hyderabad
become the most valued
based in Bangalore boundaries of science Leading global pharmaceutical pharmaceutical partner to
A part of AstraZeneca Group, to deliver life-changing company producing oral and the world pharma
which is one of the worlds medicines. injectable generic formulations fraternity by continuously
PRODUCT LINES: and active pharmaceutical researching, developing
leading pharmaceutical
Cardiovascular, ingredients and manufacturing a wide
companies range of pharmaceutical
Engaged in the manufacture Infection ,Diabetes Among the top 15 generics
,Oncology products that comply with
and marketing of companies by sales in Europe the highest regulatory
,Gastrointestinal Ranked as #7 prescription
pharmaceutical products in the standards.
PRODUCT LINE:
,Respiratory, supplier in the US as per IMS Neurosciences,
country
Present in seven crucial areas Anaesthetic total prescriptions dispensed Cardiovascular, Anti-
Mr. D. E. Udwadia, as at March, 2016 retroviral,
of healthcare - Cardiovascular, SSP/Cephalosporin,
Chairman
Diabetes, Oncology, Gastroenterological,
Mr. Sanjay Share Holding Pattern
Respiratory & Inflammation, Controlled substances,
Murdeshwar,
Infection,
Share Local Anesthesia
Holding Pattern and
(%) Anti-diabetics,
Managing Director Dr. Murali K. Respiratory,
Divi :
Maternal Healthcare Ophthalmic,
Chairman
Penem. and MD
N.V.Ramana :Executive
Listed on both BSE & Director
NSE Listed on both BSE & NSE

Revenue (INR
Cr) 570.5 Revenue (INR
Cr) 9349
Employees 1587
Employees 15000+
Book Value 62.81
Book Value 120.6
EPS 2.10
Foreign Promoters Mutual Funds Promoters FIIs Mutual Funds EPS 33.9
FIIs Non Institutions PAT (INR Cr) 5.26 General Public Others
PAT (INR Cr) 1619
 Founded in 1984 Vision: Founded in 1990 Strategy:
To become a discovery Business Strategy is based
Headquarters at Hyderabad R & D is its prime fundamental
on three global drives :
It operates in three segments : led global Manufacturing Facilities in customers,
Global Generics, pharmaceutical Hyderabad and Vishakapatnam Environment and
Pharmaceutical services and company Both the facilities are engaged communities.
PRODUCT LINES: in manufacturing APIs and Our endeavour is to
Active ingredients and proprietary
Global Generics, intermediaries for Generics, respond to these by
products
Biologics, Active Building blocks for Peptides continuously evolving
Manufacturing facilities are in various aspects of our
pharmaceutical and Nucleotides, Caretenoids
Hyderabad, Beijing, UK and operations, products,
ingredients, Custom and Chiral Ligands
USA supply chain
PRODUCT LINE:and our
Pharmaceutical engagements
Generics, with the
Intermediaries,
Has over 190 medications,60
services and communities.
Protected Amino acids,
APIs for Drug Manufacture,
proprietary products Chiral synthesis,
diagnostic kits, critical care Caretonoids and
and biotechnology products K.Satish Reddy, Shareholding pattern (%) Neutraceuticals
Shareholding Pattern(%) Chairman
Dr. Murali K. Divi :
G.V.Prasad, Co- Chairman and Managing
Chairman and CEO Director
N.V.Ramana : Executive
Listed on both BSE & Director
NSE Listed on both BSE &
Revenue (INR NSE
Cr) 10452.5 Revenue (INR
Cr) 3816
Employees 21669
Employees 9481
BV per share
(Rs.) 750 BV per Share
Promoter's Holding Mutual funds
Promoter's Holding Mutual funds ( Rs.) 134
FII EPS (Rs.) 117
FII Others EPS 32
PAT (INR Cr) 1354.5
PAT (INR Cr) 1107.7
 Founded in 1978 Vision:
Biopharmaceutical company To enhance global
based in Bangalore healthcare through
Manufactures generic active innovative and
pharmaceutical ingredients affordable
(APIs) biopharmaceuticals for
Products for cardiology, patients, partners and
nephrology, diabetology and healthcare systems
oncology across the globe.
Available in 120 countries Mission:
100% increase in Insulin To be an integrated
production capacity & 200% biotechnology
increase in Drug production enterprise of global
capacity last year distinction
Ms. Kiran Mazumdar-
Portfolio consists of 36 key
Shaw Chairperson &
brands and 984 patents
Managing Director,
Founder - Biocon
Limited
Listed on both BSE &
NSE
Market
Cap (INR 20365
Million) 0 Cap (INR
P/E 46.35
Book 164.3
Value 8 Book
EPS 21.97
Face Value 5
Vision:
Founded in 1984 To be the global leader
Became Public Company in in pharmaceutical
1995 manufacturing by
Headquartered in Hyderabad process innovation
Manufactures Active and unparalleled
Pharmaceutical Ingredients efficiencies
(APIs), Pharmaceutical Mission:
Formulation Intermediaries Our drive to be the
(PFIs) to Finished Dosages best is unparalleled.
(FDs) We will match our
Eight manufacturing facilities drive by partnering
spread over India, China and with global leaders in
the USA our markets, building
Exporting to 75+ countries lasting relationships,
and the foundation for
mutual growth and
Chairman & MD: Mr.
success.
Krishna Prasad
Chigurupati
Listed on both BSE &
NSE
Market
Million) 25440
P/E 18.17
Value 28.9
EPS 6.33
Face Value 1
 Founded in 1983 by Dilip Founded in 1973
Chairman & MD: MR.
Shanghvi Torrent Pharma received
Samir Mebta
it started with five Enterprise Inspection Report
products (EIR) from USFDA for Dahej
Manufactures generic and Indrad plants - Listed on both BSE &
active pharmaceutical commenced commercial NSE
ingredients (APIs) dispatches from Dahej facility
Products for cardiology, from 6th April, 2016. NSE Share Price 1360
nephrology, diabetology Successful integration of Elder BSE Share Price 1360
and oncology acquisition Book Value 200.27
Available in 1>150 Torrent Pharma also Acquired Sales 6529 Cr
Markets and amalgamated USFDA
Last year it earned more Face Value 5
approved Derma
than 4.3 Billion in USD manufacturing facility of Zyg
I has more than 30,000 Pharma Private Limited at
employees worldwide, Pithampur, Indore.
serving in 49 Shareholding Pattern
manufacturing units
Ms. Dilip Shanghvi
across continents.
Chairperson &
Listed on both BSE & Samir U Mehta Sudhir U Mehta
Managing Director,
NSE Sapna S Mehta Anita S Mehta
Founder Sun Pharma Varun S Mehta Samir Uttamlal Mehta (HUF)
Market Cap (INR 1973517.37
Million) Million INR Jinal S Mehta Jinal S Mehta
Mission: BSE Share Price 640.95
Sudhir Uttamlal Mehta (HUF) Aman Mehta
Shaan Mehta Torrent Private Ltd.
To be an integrated
NSE Share Price 640.75
biotechnology
Book Value 130.48
enterprise of global
distinction Face Value 1
Total Cash Flow
Basis
Company Name
Cash Inflow Cash Outflow
(Sources) (Uses) (INR
Surplus (INR
Million)
Major Sources of Cash Major Uses of Cash Observations & Remarks
(INR Million) Million)
Astrazenca 1147.7 630.4 51.75 Short Term Loans (70%)
Increasing Trade Receivables
(66%), Reducing Trade payables
Decreasing inventories are a good
Pharma sign with increasing revenues.
(26%)
Significant increase in tangible assets
shows company's investment to
Aurobindo 22511.9 19315.1 319.68
Reserves & Surplus (63%),
Capital WiP (27%), Increase in increase production in future.
Tangible Assets (20%), Decrese in However, % increase in inventory is
Pharma Short Term Borrowings(16%)
Long Term Borrowings(18%) more than % increase in revenue
indicating that the productivity has
dropped slightly
Significant decrease in inventories
Reserves & Surplus (45%) , and trade receivables is a positive
Increase in Tangible (26%) &
Dr.Reddy's 21662 17996 3666 Decreasing Trade
Intangible Assets (40%)
sign. Tangible & intangible assets are
Receivables (38%) also seeing significant investment
which is a good sign
Decrese in Short Term Provisions
Divi's 8735.11 8724.93 9.98 Reserves & Surplus (87%)
(36%), Increase in Trade
Short term provisions have reduced.
Significant increase in tangible assets
laboratories Receivables (16%) & Tangible
Assets(15%)
is good
Increasing trade payables shows
increasing faith of suppliers. Long
Biocon 12504 8833 3671
Reserves & Surplus (56%) ,
Long (10%) & Short (14%)
Non-Current Investments (43%), term loans and advances have
Limited Capital WiP (11%) reduced and capital work in progress
Term Borrowings
has increased which is good sign for
company's future.
Non-current investments, long &
Granules India 2936 2351 584.7 Reserves & Surplus (71%)
Decreasing long term borrowings short term loans and advances are
(25%), Increasing Loans and increasing (44%) which means that
Limited advances (25%) company is veering of its core
business.
Decrease in non current investments
Decreasing Non-Current Decrease in Other Current
and inventories is good. But,
Sun Pharma 50384.3 52855 -2470.7 Investments (69%), Long Liabilities (25%) and Reserves &
Reserves and surplus are depleting
Term Borrowing (15%) Surplus (24%)
and the cash deficit is not a good sign
Decrease in trade receivables and
Amplified Cash Flow
Basis Cash Increase in
Cash Inflow Surplus Difference
Outflow Cash & BB Observations &
Company Name (Sources)
(Uses) (INR
(INR
(INR
(INR
Remarks
(INR Million) Million) Million)
Million) Million)
Astrazenca
Pharma 1285.8 768.4 517.4 517.5 -0.1 -
Aurobindo Security Premium
Pharma 27122 23704 3418 3196.8 -221.2 Reserves are reducing

Security Premium
Dr.Reddy's 25494 28585 -3091 3666 6757 Reserves are increasing
Divi's Security Premium
laboratories 13376.71 13100.95 275.75 9.98 -265.78 Reserves are reducing
ESOP Reserves are
Biocon Limited 14861 11250 3611 3671 60 increasing
Granules India Security Premium
Limited 2636.6 3097.7 -461.1 584.7 1045.8 Reserves are increasing
Security Premium
Sun Pharma 55024.1 57826.5 -2802.4 -2470.7 331.7 Reserves are increasing
Hedging Reserves are
Torrent Pharma 29085.5 28261.3 824.2 127.2 -697 reducing
WC Basis
Sources of WC Uses for NWC
Funds available from Increase in Short
Company Name cash (Long Term) purpose (INR
Long Term Term Borrowings
Observations & Remarks
(INR Million) Million)
Astrazenca Long term sources are being
Pharma 127.9 0.2 127.7 0 utilised almost entirely for WC
High short term borrowings are
required to account for rising
Aurobindo inventories and funds are being
Pharma put away as cash & bank
balance. Hence not very
14560.9 10580 3980.9 3652 efficient utilisation
Even though funds available
from long term for WC are
reducing; the short term
borrowing is also reducing
Dr.Reddy's which is being cmpensated by
funding from other current
liabilities. Hence No transfer of
fund from short term to long
10750 15035 -4285 -961 term
Divi's Most is being compensated by
provisions which no longer
laboratories 8105.37 2311.89 5793.48 163.5 exist
Most is being utilised by
company to increase Cash &
Biocon Limited Bank Balance for future asset
9074 5878 3196 1694 acquisitions
Granules India No transfer of fund from short
Limited 2519.7 1545.5 974.2 326.1 term to long term
Most funding from long term is
Common size PnL Statement
INFERENCES (As a
Common Size P&L Statement percentage of total
revenue):
140.00%
Net revenue hasnt shown
120.00%
significant changes for any
company.
100.00%
Cost of materials
consumed has decreased
80.00% significantly for Divis lab
and torrent pharma.
60.00% Employee benefit
expenses has shown
40.00% significant increase in
Dr.Reddys but decreased
20.00% significantly for Torrent
pharma.
0.00%
Finance costs has shown
significant increase in
-20.00%
Aurobindo Pharma but
decreased significantly for
-40.00%
Torrent pharma.
Net revenue from operations
Total expenses
Cost of material consumed
PBT
Employee benefit expenses
Net profit for the year
Finance costs
Total expenses has
decreased sharply for Torrent
Common Base P&L Statement
INFERENCES:
Common Base P&L Statement Net revenue from
3.50 operations has shown more
than 50% increase for Torrent
3.00 pharma while it has
decreased only for Sun
2.50 Pharma.
Cost of material consumed
2.00 has decreased for Dr.Reddys,
Biocon, Sun Pharma while it
1.50 has increased by 30% for
Astrazenca.
1.00 Employee benefit
expenses has decreased
0.50 only for Sun Pharma.
Finance costs has increased
0.00 by 70% for Aurobindo Pharma
while only Sun Pharma has
-0.50 shown a decrease.
Total expenses has
Net revenue from operations Cost of material consumed Employee benefit expenses Finance costs decreased only for Sun
Total expenses PBT Net profit for the year Pharma while all other
Common Size Balance Sheet
INFERENCES:
Common Size Balance Sheet Reserves and surplus has
increased significantly for
90.00%
Granules India and Torrent
80.00%
Pharma while it has decreased
only for Biocon.
70.00% Long term borrowings has
decreased significantly for
60.00%
Aurobindo Pharma, Granules
India and Torrent Pharma.
50.00%
Short term borrowings has
40.00% decreased for all companies
except for Biocon and Granules
30.00% India.
Trade Payables and tangible
20.00%
assets has decreased
10.00%
significantly for Granules India.
Long term loans and
0.00% advances has decreased
Reserves & Surplus Long term borrowings Short term borrowings sharply for Biocon India.
Trade Payables Tangible assets Long term loans and advances Trade receivables has
Inventories Trade receivables Cash and Bank Balances
Shortterm loans and advances increased significantly for
Common Base Balance Sheet
INFERENCES:
Common Base Balance Sheet Reserves and Surplus have
5.00 increased significantly for
Aurobindo, Divis Lab, Biocon
4.50
and Torrent pharma.
4.00
Long term borrowings have
increased more than 10 times
3.50 for Biocon.
Short term borrowings ha
3.00

2.50

2.00

1.50

1.00

0.50

0.00

Reserves & Surplus Long term borrowings Short term borrowings

Trade Payables Tangible assets Long term loans and advances
Inventories Trade receivables Cash and Bank Balances
Shortterm loans and advances
 Current
Ratio Significant inferences (*Industry average = 2.4)
Biocon is above industry average of 2.4
Torrent and Dr.Reddys with an average of 2.0
are close to industry average
Astra Zeneca and Granules with an average of
1.2 and 1.4 are consistently below Industry
average
Aurobindo rose from 1.0, 5 years back to 1.5
but still below industry average
Divis labs has consistently increased from 3.0
to 6.0 showing assets being caught up in high
inventory
Sun pharma has shown an alarmingly
decreasing trend

*Above series shows 2012 to 2016 data (right to left)

 Quick
Ratio Significant inferences (*industry average = 1.0)
Trends are similar to Current ratio
Biocon, Dr. Reddys and Torrent Pharma have a
QR higher than industry average of 1.0
Aurobindo and Granules have a QR close to
Industry average
Astro Zenecas QR has shown a haphazard
upward trend but still below industry average
Sun Pharmas QR has significantly fallen over
the years
Divis labs has a sudden surge in quick ratio
over past 2 years

*Above series shows 2012 to 2016 data (right to left)

Other Short term
Solvency Ratios
 Debt to
Equity Ratio Significant inferences (*industry average = 0.6)
Divis labs and Dr. Reddys have significantly
lower DE ratio and the trend is decreasing. i.e
they are raising more equity and reducing debt
Aurobindo (except for 2015) is around DE ratio
of 0.5
Astra Zenecas average is almost close to 0.6
since last 3 years
Biocon has consistently been at 0.3 significantly
lower than industry average
Sun Pharma has increased its debt in 2014 but
again moving towards its average of 0.3

*Above series shows 2012 to 2016 data (right to left)

Other Long term
solvency ratios

*Please refer note below.

RoE and Valuation Ratios
RoE and Valuation Ratios
RoE and Valuation Ratios
RoE and Valuation Ratios
Thank you