Sapm Final

Security Analysis And Portfolio Management Report On

Pharmaceutical Industry Submitted By: Kailas Dalvi (RollNo. 21) Parin Chawda( RollNo. 33) Shashan Singh Rathore(RollNo. 44) MBA(IB) 2008-10

IIFT Kolkata

Table of Contents ECONOMIC ANALYSIS.............................................................................................................................. 4 INDIAN PERSPECTIVE .......................................................................................................................... 4 OUTPUT ............................................................................................................................................... 4 AGRICULTURE ..................................................................................................................................... 6 INDUSTRIAL ......................................................................................................................................... 6 INFRASTRUCTURE ............................................................................................................................... 7 SERVICES ............................................................................................................................................. 7 AGGREGATE DEMAND ........................................................................................................................ 8 MONETARY CONDITIONS .................................................................................................................... 9 INFLATION ......................................................................................................................................... 10 MACROECONOMIC OUTLOOK .......................................................................................................... 11 INDUSTRY ANALYSIS.............................................................................................................................. 12 GLOBAL INDUSTRY ............................................................................................................................ 13 INDIAN PHARMAEUTICAL INDUSTRY ................................................................................................ 14 PHARMACEUTICAL INDUTRY STRUCTURE .................................................................................... 16 SWOT ANALYSIS ............................................................................................................................ 16 GROWTH DRIVERS ........................................................................................................................ 18 PORTER’S FIVE FORCES MODEL .................................................................................................... 22 COMPANY ANALYSIS ............................................................................................................................. 23 CIPLA LTD .......................................................................................................................................... 23 SHAREHOLDING PATTERN............................................................................................................. 23 INVESTMENT STRATEGY................................................................................................................ 23 KEY RISKS ....................................................................................................................................... 24 ECONOMIC ACTIVITIES .................................................................................................................. 24 RECENT DEVELOPMENTS .............................................................................................................. 24 FINANCIAL ANALYSIS ..................................................................................................................... 25 SWOT ANALYSIS ............................................................................................................................ 26 GLENMARK PHARMACEUTICALS ...................................................................................................... 27 SHAREHOLDING PATTERN............................................................................................................. 27 INVESTMENT RATIONALE:............................................................................................................. 27 KEY RISKS ....................................................................................................................................... 28 2

ECONOMIC ACTIVITIES .................................................................................................................. 28 RECENT DEVELOPMENTS .............................................................................................................. 28 FINANCIAL ANALYSIS ..................................................................................................................... 29 SWOT ANALYSIS ............................................................................................................................ 30 GLAXO SMITHKLINE PHARMA ........................................................................................................... 31 SHAREHOLDING PATTERN............................................................................................................. 31 INVESTMENT RATIONALE.............................................................................................................. 31 KEY RISKS ....................................................................................................................................... 32 ECONOMIC ACTIVITIES .................................................................................................................. 32 RECENT DEVELOPMENTS .............................................................................................................. 32 FINANCIAL ANALYSIS ..................................................................................................................... 33 SWOT ANALYSIS ............................................................................................................................ 35 REFERENCES .......................................................................................................................................... 36 APPENDIX .............................................................................................................................................. 37 CIPLA LTD .......................................................................................................................................... 37 ESTIMATED B/L SHEET .................................................................................................................. 37 PRICE ESTIMATION ........................................................................................................................ 38 GLENMARK PHARMACEUTICALS....................................................................................................... 40 ESTIMATED B/L SHEET .................................................................................................................. 40 PRICE ESTIMATION ........................................................................................................................ 41 GLAXO SMITHKLINE PHARMA ........................................................................................................... 43 ESTIMATED B/L SHEET .................................................................................................................. 43 PRICE ESTIMATION ........................................................................................................................ 44

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ECONOMIC ANALYSIS The current economic crisis that has been observed around the entire globe has affected the emerging economies as well. India on the whole as per the economic indicators is not in recession but is definitely facing a slowdown with the rate of growth of GDP would definitely be affected. However the general consensus is that we have already bottomed out and now the only way for the global economy would be up. The green shoots are already visible with the major economies of Europe (Germany & France) reversing the trend of declining GDP growth rate. Despite the developments the analysts believe that the global economy is not yet out of the woods. The unemployment rate in the developed countries is continuously on the ascent which is not a very good sign.

INDIAN PERSPECTIVE The scene for India is not as ominous as the rest of the world due a variety of reasons the most important being the relatively strong domestic demand & the burgeoning Indian middle class. India's GDP growth in 2008-09 was one of the highest in the world and reflected the resilience of the country's growth impulses to a severe external shock as well as the impact of the policy response to contain the adverse effects of the global economic crisis on domestic growth. Even in the recently concluded meeting of the 100 CEOS & the Finance Minister, the outlook for the Indian economy has been bullish even though the growth rate for the current fiscal quarter was expected to drop to 6%, the annual growth rate in GDP is expected to be at an optimistic 9%.

OUTPUT The phenomenal growth rate that the Indian economy has observed from 2003-08 of 8.8% was not sustained in 2008-09.The GDP grew at 6.7% in 2008-09 due to the overall world recession. The slowdown was majorly due to a sharp decline in the industrial sector & a moderate downturn in the services & agriculture. From the table given below we can observe that in the fourth quarter of 2008-09 only agriculture sector showed a reversal of trend on the quarterly basis with a rise from -0.8% to 2.7%.

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EXHIBIT 1

The above given exhibit shows the rate at which the Indian GDP has been growing & thus is one of the emerging economies of the world.

EXHIBIT 2

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AGRICULTURE Even though the agriculture sector saw a bounce back in the last quarter of 2008-09 the current monsoon conditions are threatening the overall recovery of the economy. Delayed as well as inadequate southwest monsoon has put the kharif crops in jeopardy which accounts for 57% of the total agricultural produce. The food management is a big issue facing the country that needs to be tackled & which might act as a drag on the overall economic growth.

INDUSTRIAL The industries showed a good growth in July 2008, but registered a sharp decline in the second half of the year with negative growth in December 2008 & March 2009. The infusion of liquidity in order to kick start the economy has its effect on the IIP with some of the sectors showing a phenomenal growth. The electricity sector recorded an appreciable increase whereas the mining & manufacturing related to food products has shown a decline.

EXHIBIT 3

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INFRASTRUCTURE The core infrastructure sector grew by a good 4.8% vis-a-vis the 3.5% growth shown in the corresponding sectors for the previous year. The sectors which have shown a growth include the cement, coal & electricity. This augurs well for India in the long run as the fiscal stimulus would enable to complete the twin job of putting the economy back on the path of recovery coupled with the development of the infrastructure in India which has been a laggard for a long time.

EXHIBIT 4

SERVICES The services sector also saw the effects of the global melt down as this is one sector which is dependent to a large extent on the global scenario. It recorded a lower growth of 9.4% in 2008-09 compared to the 10.8% growth in 2007-08.The below given table shows the performance of the services sector for the year 2008-09

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EXHIBIT 5

AGGREGATE DEMAND One of the bulwarks of the strong economic growth that Indian has witnessed in the past decade has been the strong domestic demand. The comparative weakening of the aggregate demand has acted as big impediment to the growth of the GDP. There was a significant reduction in private consumption as well as a moderation in investment which had to be compensated by an expansionary fiscal policy. In the last 2 quarters there was a deceleration in the sales growth & PAT as well indicating a fall in the aggregate demand. The overall rise in the Aggregate demand does depend to a large extent on the monsoons as the major demand comes from the rural areas. A shortfall in rain would not augur well for the rural population which would in turn hamper the growth in aggregate demand. The external demand is also tantamount to the growth in the Aggregate demand which would need to increase so that the growth in economy can be sustained.

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EXHIBIT 6

MONETARY CONDITIONS The expansionary policy that the RBI has adopted has ensured that there has been ample of liquidity in the system. Also the fiscal stimulus that the government has given coupled with the lowering of interest rates that have been observed of late has ensured that there no dearth of liquidity in the market. In the recent review the interest rates have remained unchanged due to the fear of looming inflation.

EXHIBIT 7

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The above chart gives a track of the money supply that is present in the economy.

EXHIBIT 8

INFLATION The Whole sale price index has declined sharply to 0.8 % in the end of March from the acrophobic heights of 12.9% in August 2008.Currently inflation is not a major issue with the inflation at negative levels due to high base effect. Some of the important reasons are the fall in prices of crude as well as a general decline in the commodity prices coupled with a fall in global demand. However the upward pressure on the prices in the future is pretty eminent due to the delayed monsoons as well as the drought like conditions that are caused due to paucity of rains. Also there has been a change in the stance taken by RBI from September 2008 from containing the aggregate demand to supporting demand expansion so that the growth is not sacrificed. The main idea behind it is that the domestic liquidity remains strong & there is a continuous credit flow to the various productive sectors of the economy.

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EXHIBIT 9

MACROECONOMIC OUTLOOK The macroeconomic outlook shown by the various global agencies indicates that there is going to be recessionary pressures that would remain prevalent throughout 2009 even though there are some indicators that are showing positive signs. The IMF has revised the growth projection for India from 4.5% to 5.4% for the year 2009 even though the finance minister remains optimistic of enjoying a 9% growth. The various surveys that were done by Dun & Bradstreet, CII & NCAER indicate that there would definitely be a change in the business sentiment with the gradual return to optimism for the business. This business optimism is also seen through the huge rally that has been observed on the BSE & NSE. The survey conducted by professional forecasters for the RBI has the following findings. 

GDP growth rate for 2009-10 at 6.5%.



Agriculture sector growth rate to 2.5% from an earlier predicted level of 3.0%.



Industrial sector growth rate to 4.8% from an earlier predicted level of 4.1%.



Services sector growth rate to 8.3% from an earlier predicted level of 7.5%.



Higher predicted growth rates for Industrial & Services sector in the 3rd & 4th quarters for 2009-10.

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INDUSTRY ANALYSIS “The Indian Pharmaceutical industry is a success story providing employment for millions & ensuring that essential drugs at affordable prices are available to the vast population of this subcontinent.” - Richard Gerster The Indian pharmaceutical Industry has come a long way since its infant stages in 1960s. The important events that have occurred in the life of the pharmaceutical industry can be depicted as follows.

EXHIBIT 10

The days when Indian pharmaceutical industry was equivalent to making cheap generic drugs is passé & a consolidation is happening in the current Indian market. The most watershed events in the above shown timeline would be 

Phase 2. Indian Patent Act 1970.

-Led to the growth of the generic drug segment as India had a process patent regime. 

Phase 5. New Indian Patent law 2005.

-Led to the Indian Pharmaceutical majors to also look forward to invent drugs.

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GLOBAL INDUSTRY The Global industry needs to be taken a look at due to the fact that Indian Pharmaceutical firms are having a considerable chunk of the pie on the global scene as well as the local Indian market. In 2008, the global pharmaceutical market has grown at the slowest rate in this decade and is expected to slow down further. The market reached USD773 billion at a growth rate of 4.8% in 2008, which is the slowest growth rate of the decade. The two largest markets, the US and Europe which contributed almost 73% of the global market in 2008, achieved growth rates of 1.4% and 5.8% respectively. Going forward, the US market is expected to stagnate or decline further over the next five years while the European market is expected to grow at a sluggish pace with a CAGR of 2 - 5% for 2008 – 2013. The following are the reasons for the same 

Decrease R&D productivity.



Squeezing of profit margins due to the competing off patent Generic Drugs. (Drugs worth USD 47 billion are getting off patent in the next three years)



Current global financial crisis.



Higher cost of developing new drugs.



Stricter regulatory requirements.



Fewer & smaller blockbuster drugs.

World Pharmaceutical Industry Total World Market (in US $ Bil ions) Growth over previous year

2001

2002

2003

2004

2005

2006

2007

393 429 499 560 605 648 75 773 11.80% 9.20% 10.20% 7.90% 7.20% 6.80% 6.60% 4.80% EXHIBIT 11

Year Blockbuster sales growth Market Share Pharma Maket growth %

2003 2004 2005 2006 2007 n/a 24% 14% 10% 9% 33.10% 36.50% 38.70% 39.70% 39.70% n/a 12% 8% 7% 9%

EXHIBIT 12

In order to address the above mentioned issues the pharmaceutical majors around the world are looking forward to tackle the issue by 

2008

Cutting down costs through increased operational efficiency. 13



Looking forward to emerging markets for outsourcing.



Looking at strategic alliances & acquisitions, an inorganic form of growth.

Thus from the above exhibit it can be observed that the Blockbuster sales growth on a year on year basis has been declining which is the main source of income for the big pharmaceutical firms. The big companies are looking forward to cost cutting measures on a large scale through outsourcing to the Asian competitors. COMPANY Pfizer

COST CUTTING MEASURES  Closing 5 research facilities  Selling 3 manufacturing facilities  Reducing 10% of workforce  Outsourcing 30% of manufacturing to Asia  Reducing cost through restructuring target sales & marketing  Closed 28 plants since 2000  Cut spending by 2010  Reduction of 2500 jobs

GSK Pharmaceuticals

Novartis

EXHIBIT 13

From the point of view mergers & acquisitions the watershed moment that took the Indian Pharmaceutical Industry by storm is the acquisition of Ranbaxy the largest Pharmaceutical Company of India. The company was taken over by the 2nd largest Japanese pharmaceutical company Daiichi Sankyo which was more into innovative drug manufacturing. The rationale behind the acquisition was given as follows

INDIAN PHARMAEUTICAL INDUSTRY India is the world’s fourth largest producer of pharmaceuticals by volume & accounts for around 8% of global production. In terms of value, production accounts for around 1.5% of the world total. The Indian pharmaceutical industry directly employs around 500,000 people and is highly fragmented. Despite accounting for 8% of global production in value terms it captures only 1.5% indicating that India is more into generic drug & bulk drugs. In terms of the GDP the pharmaceutical sector comprises around 7 % of the GDP growing at the rate of 12% - 14 % annually.

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Indicator Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Sales Growth Of Drugs And Pharmaceuticals Companies 11.68 16.04 22.94 19.47 10.72 Expenses Growth Of Drugs & Pharmaceuticals Companies 10.8 20.22 16.5 16.56 29.19 PBDIT Growth Of Drugs & Pharmaceuticals & Drugs Companies 1.04 25.87 45.27 14.85 -55.07 PAT Growth Of Drugs & Pharmaceuticals Companies -5.57 42.64 62.82 11.67 -95.01 Expenses To Sales Ratio Of Drugs & Pharmaceuticals Companies 94.47 97.9 92.62 90.36 105.51 Other Income To Total Income Ratio Of Drugs & Pharmaceuticals Companies 3.63 6.47 5.53 4.49 2.99 Extra Ordinary Income To Total Income Ratio Of Drugs & Pharmaceuticals Companies 0.7 0.15 0.22 0.96 5.04 Extra Ordinary Expenses To PDBIT Ratio Of Drugs & Pharmaceuticals Companies 0.26 0.13 0.18 0.82 2.79 PBDIT Margin Of Drugs & Pesticides Companies 19.13 20.09 24.15 23.46 9.65 PAT Margin Of Drugs & Pharmaceuticals Companies 10.04 11.95 16.24 15.35 0.7 EXHIBIT 14

The outlook of bigger Pharmaceutical firms of looking at emerging markets for outsourcing is a good sign for the Indian market as India is looked upon as a manufacturing hub for drugs. At the same time due to the new Patent Law 2005 India pharmaceutical companies are becoming targets for the foreign firms as sustaining profits is becoming tougher & a lot of small companies are getting gobbled up. The Indian companies are now trying to move up the value chain by developing new drugs so that they will be able to sustain the phenomenal growth observed in the past few decades. Some of the important features of the Industry are as follows 

A knowledge based Industry.



Huge manufacturing potential for high quality drugs & formulations.



Developing cost effective technologies for various bulk drugs & intermediates.



Cost advantageous.



Highly fragmented industry.



Tremendous export potential in newer markets like Africa along with expanding the share in the older European & American markets.



A growth driver for GDP with the sector poised to grow at 16% from 2007 to 2011.



Strong technical manpower.



Competencies in chemistry, process development & reverse engineering.

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PHARMACEUTICAL INDUTRY STRUCTURE

The various segments in which the Indian Pharmaceutical Industry can be divided into are as follows.

EXHIBIT 15

It can be observed that the number of companies in manufacturing of Bulk drugs & Generic drugs is the highest & the amount of fragmentation that is present in the sector. Company Total Pharmaceutical Market Cipla Ranbaxy GSK Pharmaceuticals Piramal Healthcare Zydus Cadila Total of top 5 Companies

Size($ Billion) Market Share (%) Growth Rate (%) 6.9 100% 9.90% 0.36 5.30% 13.40% 0.34 5.00% 11.50% 0.29 4.30% -1.20% 0.27 3.90% 11.70% 0.24 3.60% 6.80% 1.53 22.10% -

EXHIBIT 16

SWOT ANALYSIS

The Indian Pharmaceutical industry despite its robust growth is under pressure to change from the various external factors. The SWOT analysis of the Indian Pharmaceutical industry highlights the strengths & the opportunities that the Indian Pharmaceutical Industry has at the same time trying to weigh the possible threats & the weakness that can be exploited by the competitors. 16

EXHIBIT 17

STRENGTHS

The above mentioned strengths have always held the Indian pharmaceutical Industry in a good stead, the main being the cost advantage & the expertise that India has developed over in the field of reverse Engineering. WEAKNESS

The highly fragmented Indian Pharmaceutical Industry makes it a hugely competitive industry. However that is beneficial from the point of view of producing quality drugs at a lower price finally benefiting the final customer in the end. However it also acts as a weakness as there is always a likelihood of it being gobbled up by the major Pharmaceutical giants. Also the lack of product development acts as a weakness which is a major source of revenue for any Pharmaceutical company. 17

OPPORTUNITIES

The opportunities that lay in store for the Indian pharmaceutical Industry on the whole are immense due a lot of factors. The most important factor would be the coming off patent for a lot of Blockbuster drugs which can then be sold as Generics. Also the recent financial crisis has turned people towards the use of Generic drugs thus increasing their usage as well. Indian is also entering into a lot of markets apart from the traditional markets of USA & Europe. THREATS

The threats that are looming large are numerous, the takeover threat being immense. Even the pharmaceutical MNCs are looking forward to India & China as a manufacturing hub with more focus on Bulk Drugs & Generics to boost their growth. Also the threat from China is huge not only from the point of view of taking away business but also the counterfeit drugs that have been sold in the name of Indian manufacturers. GROWTH DRIVERS

EXHIBIT 18

The above mentioned factors are some of the important growth drivers that will sustain the growth of the Pharmaceutical Industry in the future.

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PRODUCT PATENT REGIME/PRODUCT PATENT REGIME

After the new patent law of 2005 & the acquisition of Ranbaxy, the Indian pharmaceutical firms are trying to move up the value chain by investing hugely in RND and trying to foray into the innovative drug manufacturing market. The results can be observed from the number of patents that were filed which shows an upward trend .Also the cost of doing RND in India is lesser than the other countries & as a result a lot of major global pharmaceutical firms are looking at India as a hub for doing low cost RND. PATENTS Filed Examined Granted

2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 12613 17466 24505 28940 35218 10709 14813 11,569 14119 11751 2469 1911 4320 7539 15261

EXHIBIT 19

COST ADVANTAGE

As show earlier the level of fragmentation in the Indian pharmaceutical industry is huge which makes the Indian proposition cost advantageous. There are nearly 8000 manufacturers which enable the industry to drive down costs along the life cycle of the project. Compared to USA & Europe the costs are lower by 65% & 50% respectively.

EXHIBIT 20

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Installation costs-The cost of setting up a plant in India is 30% lower than establishing an FDA plant in USA.

EXHIBIT 21

The pool of trained chemists & pharmacists in India is 6 times larger than USA & are available at 10% of cost.

EXHIBIT 22

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ENTRY INTO NEW MARKETS

The Indian pharmaceutical Industry is consolidating its position in the already established USA & European markets. However at the same time they are entering into other continents like Africa & Latin America where there is a great demand for the generic drugs industry. Also there is awareness about the safety of the generic drugs globally & also due to the financial crisis the demand is on the rise which augurs well for the Indian industry.

EXHIBIT 23

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PORTER’S FIVE FORCES MODEL

EXHIBIT 24

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COMPANY ANALYSIS CIPLA LTD Cipla is a leading pharmaceutical company in India with a strong and profitable business model. The company has a well-diversified portfolio, without any overdependence on a particular segment. The company owns around 30 manufacturing plants. The manufacturing facilities are approved by the major international regulatory agencies including the US FDA, MHRA (UK) and WHO. It conducts research for developing innovative drug delivery systems for both new and existing drugs with major focus on new medical devices in the area of respiratory medicine including an inhaler device for insulin. SHAREHOLDING PATTERN GROUP PROMOTER FII DII PUBLIC OTHERS

PERCENTAGE 39.38 13.4 18.41 22.07 3.54

EXHIBIT 25

INVESTMENT STRATEGY

 Low Risk global strategy-Cipla's strategy for its generics business is to enter into bulk drug supply arrangements with companies well entrenched in the generic markets. Cipla has entered into partnerships for 125 products with 8 companies in the US and a strategic alliance to develop over 50 generic products for the generics major Teva/Ivax. The company thus, intends to enter specialty segments with a low-risk return approach ensuring relatively stable earnings flow  Anti-asthma and anti-HIV focus to augur well: Cipla enjoys a near dominant position in the asthma segment (about 20% of sales). It is one of the few companies globally having the required technology to manufacture CFC-free inhalers. With CFC inhalers to be compulsorily phased out by 2010, this segment is expected to see growth in the future  Debt to equity and coverage ratios is favorable to minority equity investors

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KEY RISKS

 An unfavourable court ruling in an ongoing litigation between the Government of India and Cipla regarding alleged overcharging of certain drugs could potentially pressurise the Company’s bottom line  If the cost of raw material keep on increasing due to increased pressure on Chinese companies to move to higher level drugs, companies margin will be hit drastically ECONOMIC ACTIVITIES

The company is present in 3 major segments:  Bulk Drugs  OTC  Veterinary Drugs  Prescription Drugs  Technological services

The key competitors of the company are:  Dr. Reddy’s Labs  Lupin  Sun Pharma  Glaxosmithkline RECENT DEVELOPMENTS

 On 19th August , 2009 the Delhi High court allowed it to see the generic version of Bayer’s cancer drug.  During April 2009, the USFDA raised 9 deviations in the manufacturing process during inspection of the company’s Bangalore unit. The company has stated that it would submit it response to the Regulator within the stipulated time period. On the Adcock Ingram-Cipla Medpro issue in South Africa, the company has stated that it would support its partner (Cipla Medpro) in case of any hostile takeover by Adcock. Cipla Medpro currently contributes around 7% of the company’s Total Exports and there can be risks to this contribution in case of any hostile takeover by Adcock

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 July 2009: Recently ,the Delhi High Court allowed Cipla to manufacture and sell generic version of patented lung cancer drug 'Erlotinid' invented by Swiss Pharma company Hoffman La Roche Ltd  Aug 2009: It also lost Indian government order for Tami flu to Hetero

FINANCIAL ANALYSIS

Column1 Key Ratios Sales (in Crore) Net Profit (in Crore) EBIT Margin EBITDA Margin Net Profit Margin ROCE Sales Growth (YOY) EPS Growth (YOY) Retention Ratio OCF* Growth Debt Equity Interest Coverage Current Ratio

Column2

Column3

2005 2401.17 409.61 21.75% 24.04% 17.06% 2908.00% 16.81% -74.10% 70.70% -22.72% 12.00% 68.26% 1.84%

Column4 2006 3103.81 607.64 23.24% 25.82% 19.58% 2964.00% 29.26% 48.32% 70.80% 39.42% 24.00% 55.74% 1.69%

Column5 2007 3657.95 668.03 22.28% 25.10% 18.26% 25.33% 17.85% -57.60% 72.70% 19.12% 4.00% 116.10% 272.00%

2008 4295.24 701.43 19.79% 22.83% 16.33% 20.00% 17.42% 5.01% 74.00% 13.17% 15.00% 72.47% 1.98%

EXHIBIT 26

 The company’s debt to equity & leverage ratios are very favorable  Company has posted phenomenal sales growth over the period of last 3-4 years  EPS growth has been very low due to equity dilution during the period of 2006-07  Commenting on the road ahead the company, they are looking at 10% top line and bottom-line growth in FY10, and Operating margins are seen at 23-25%  The net sales for the quarter ended march 09 grew by 14% to Rs. 1235 cr this was mainly driven by strong performance in Domestic market and its Formulations segment in exports. Others segment (Others include Technology Knowhow/fees and other services) which grew by 225.1% The company analysis was also done by the Value Benchmark Method. By this method the value anchor or the value range was found out. We can see that by this method the stock price comes out to be Rs 294 while the current market price is Rs 275. Thus we can conclude that the stock is undervalued and its price will grow up in the future. Hence, it’s recommended to stay invested in this stock for the short term.

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SWOT ANALYSIS

Strengths:

Weaknesses:

 Cipla has a voluminous product portfolio containing more than 200 brands some of which are the leading brands in their respective category

 It is not present in CRAMS and Bio Pharmaceutical segment which are the best projected segment in the industry

 The company has excellent process R&D skills which are considered to be one of the best in the country  The Company has excellent distribution network Opportunities:

Threats:

 Lifestyle diseases, Rising Life Expectancy, Rising Disposable Income and innovation are major drivers of pharmaceutical industry. With increased shift in this segment, domestic market is set to grow. This is an opportunity for company like Cipla which is already a leader in domestic market

 China's recent move to cut incentives on exports may add to the cost of imports. These factors will impact the Company's overall margins. An alternative resource for import of raw material is not so feasible. If stringent action is taken by Chinese government then it can hurt margins of the company  Recent acquisitions attempt of its subsidiary Cipla Medpro by Adcock-Ingram. This subsidiary accounts for 8% of companies export

EXHIBIT 27

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GLENMARK PHARMACEUTICALS Glenmark Pharmaceuticals Started as an Family Business in 1977 with focus on marketing and manufacturing of formulations. In 2008 the company was divided into two units Glenmark Pharmaceuticals Ltd. (GPL) and Glenmark Generics Ltd (GGL) to keep sharp focus on both the segments. Since 2000 company has been into Research of NCE, NBE and drug discovery system and has grown among best in India.

SHAREHOLDING PATTERN

GROUP PROMOTER FII DII PUBLIC OTHERS

PERCENTAGE 52.09 28.24 3.36 14.93 1.38

EXHIBIT 28

INVESTMENT RATIONALE:

 Innovation, research and aggressiveness are the words that better describe Glenmark. It has been reorganized into GPL and GGL. This will help in keep sharp focus on both the sectors.  Company’s sound strategy of developing molecules and out licensing next phase leads to lowering of the involved risk in research and also an inflow of revenue due to milestones payments and royalties.  Company has growth with a CAGR of 39% over past four years. It started its NCE research in 2000 and now is the best in it in India.  Company’s majority revenue in specialty segment is generated domestically along with emerging economies while in generics it’s US from which major revenues are generated. Specialty and Generics contribute 60:40 to overall revenues.

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 In near term company had a bad relationship with investors due to non-transparency of its guidance for FY’09 and no guidance for FY’10. Coupled with few bad news for its NCE and hence its stock has been underperforming market in short term.

KEY RISKS

 Bad global and economic conditions could hurt its revenue since lesser companies would in position to in- license NCE, also due to it margins may decline.  Any negative news on NCE, like recent hiccups with research partners could hurt its potential in pipeline.  Rupee appreciation can lead to significant MTM losses if sound hedging policy id not adapted.  Its aggressive efforts to build front end markets through acquisitions could hurt him if not executed properly.

ECONOMIC ACTIVITIES

The company is present in 3 major segments:  Specialty  Generics  NCE Research and collaboration

The key competitors of the company are:  Lupin  Torrent Pharma  Dr. Reddy’s Lab

RECENT DEVELOPMENTS

 April 2009: Company has announced that the results of fourth quarter along with results of FY’09 will be published in June.  April 2008: company has said this FY they will be less aggressive and hence less CAPEX will be done along with focus to attain operational efficiency.

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 Dec 2008: GRC8200 molecule under research with Merck, Germany was halted. This was second blow to R&D after GRC6211 molecule's research with Eli Lilly was stopped in advanced stage.

FINANCIAL ANALYSIS Column1 Key Ratios Sales (in Crore) Net Profit (in Crore) EBIT Margin EBITDA Margin Net Profit Margin ROCE Sales Growth (YOY) EPS Growth (YOY) Retention Ratio OCF* Growth Debt Equity Interest Coverage Current Ratio

Column2

Column3 2005 538.13 63.48 19.50% 22.28% 11.80% 12.80% 41.09% -24.65% 83.83% -61.30% 1.52% 5.84% 4.24%

Column4 2006 620.83 67.03 17.20% 20.01% 10.80% 8.34% 15.37% 75.00% 83.55% -414.83% 2.28% 5.70% 1.82%

Column5 2007 838.76 134.8 27.22% 30.01% 16.07% 13.26% 35.10% 80.33% 91.13% -63.38% 2.02% 5.31% 1.18%

2008 1408.71 389.02 36.17% 38.26% 27.61% 32.65% 67.95% 46.75% 94.81% -2475.93% 52.00% 10.89% 1.83%

EXHIBIT 29

 For fiscal year ending FY08 company’s sales stood at Rs 2009.2 cr, an 60% increase YoY and its net profit at Rs 632.1 cr, an increase of 100% YoY.  Over the years Company have been constantly increasing EBIT Margin, thus improving upon its operational efficiency.  Company has posted phenomenal sales and EPS growth every year over the last 3-4 years.  The profitability ratios of the company have been increasing year on year due to huge revenues from high margin business such as specialty.  The Debt-Equity ratio of company has been getting better and better and is impressive compared to industry average and keeping in light the amount of money it invests into its R&D activities.  Despite low D/E company has below industry average current ratio due to heavy locked in amount in perusing R&D. The value benchmark method leads to a stock price valuation of stock at Rs 211, while current stock price is Rs. 225. The stock is over valued so we feel that the investor should hold for sometime before investing in the stock.

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SWOT ANALYSIS

Strengths

Weaknesses

 Combination of good presence in high margins and high volume businesses.

 Inability of it’s to maintain sound relationship with partners in research especially in molecules in phase-III.

 Three quarters of revenue being generated from India and US which has immense potential going further in respective sectors of specialty and generics. Also its ROW presence is growing impressively.

 Inability to keep good relationship and trust with its investors due to poor transparency policy.

 Tremendous growth in all the sectors of its presence in last 3-4 years (in FY’08 generics had growth of 108%).

 Comparatively low presence in emerging markets, except India, compared to its peers could be a competitive disadvantage in poor economic conditions.

 Strong portfolio of molecules in pipeline whose future seems promising taking past performance of company in view Opportunities

Threats

 Need of big global firms for new potential new drugs for getting their share of higher margins – potential customers of its NCE.

 Growing competition and pricing pressure in generics could put pressure on its margins.  Failure of its molecules in pipeline will put immense pressure on its earning since revenues from R&D achievement contribute about 25% to GPL.

 Rising healthcare expenditure and rising income levels will stimulate demand of branded formulations in emerging economies.

EXHIBIT 30

30

GLAXO SMITHKLINE PHARMA In 1924 the company was formed under name of H.J.Foster & co as an fully owned subsidiary of above named company of UK which was in 1950 renamed to present name,

GlaxoSmithKline is the largest Pharma MNC subsidiary in India which is the largest vaccines player in India and among top5 domestic player having more than 90% of revenue being generated domestically.

SHAREHOLDING PATTERN

GROUP PROMOTER FII DII PUBLIC OTHERS

PERCENTAGE 50.67 14.77 17.41 16.81 0.34

EXHIBIT 31

INVESTMENT RATIONALE

 Having reputed itself as the safest company in sector to bet upon GlaxoSmithKline is the biggest MNC operating in India having strong presence in Branded Formulations and Generic Formulations.  Company generates more than 90% of its revenues from domestic operations with very few percent from exports to small nations and few percent from fine chemicals business which have been now sold off.  Company holds leadership position in many segments in which it operates domestically such as Dermatology, anti-parasitic, vitamins and minerals.  It is one of the biggest vaccines players in Indian market with Vaccines for HepatitisA, Hepatitis-B, Influenza, Chickenpox etc. In near future it plans to come with vaccines for cervical cancer for which clinical trials are over.

31

 It has maintained its decent growth momentum by way of new product launches regularly. It wants to focus on specialty, CVS, CNS, oncology, Neuropsychiatry and Diabetology in near term since they have huge margins and fast growth.  On RnD front anti-infective, cardiovascular segments are focus along with try to develop an anti counterfeit process for coating.

KEY RISKS

 Procuring API from china for some of its products could still be an issue with company as was in last FY.  Continuity of poor contribution from Biddle Sawyer, it subsidiary could increase its top-line while depleting bottom-line.  Price Control and unfavorable legislation in domestic market could hamper company’s growth and potential in drastic way  Low R&D Expenditure could hurt company in coming years

ECONOMIC ACTIVITIES

The company is present in 3 major segments:  Generic Formulations  Branded Formulations  Vaccines The key competitors of the company are:  Lupin Labs  Pfizer  IPCA Labs RECENT DEVELOPMENTS

 Aug 09: Glaxo SmithKline Pharmaceutical announced the launch of its patented medicine promecta, used in treatment of depleted platelet count by the end of fourth quarter this year.  Apr 09: Glenmark’s molecule for neuropathic pain, osteoarthritis - GRC 10693, successfully completes Phase I trials 32

 Feb 09: Glenmark receives approval from the U.S. FDA for Lithium Carbonate Capsules  Dec 08: SCRIP, the leading pharmaceutical magazine in the world Crowns Glenmark as the "Best Pharma Company in the World - SME" and the "Best Company in Emerging Markets" at the SCRIP Awards 2008 in London FINANCIAL ANALYSIS

Column1 Key Ratios Sales (in Crore) Net Profit (in Crore) EBIT Margin EBITDA Margin Net Profit Margin ROCE Sales Growth (YOY) EPS Growth (YOY) Retention Ratio OCF* Growth Debt Equity Interest Coverage Current Ratio

Column2

Column3

2005 1490.89 333.09 32.68% 33.85% 22.34% 29.45% 23.26% 24.77% 28.86% 29.68% 0.00% 207.16% 1.01%

Column4 2006 1593.86 502.08 42.29% 43.28% 31.50% 31.05% 6.91% 18.67% 46.13% 52.46% 0.01% 277.93% 0.94%

Column5 2007 1710.82 545.51 43.28% 44.20% 31.89% 32.85% 7.34% 18.09% 45.11% -31.43% 0.00% 857.19% 0.96%

2008 1761.39 537.75 42.48% 43.40% 30.52% 28.83% 2.96% 9.70% 33.64% 24.35% 0.00% 921.51% 0.96%

EXHIBIT 32

 EPS growth posted by company is in tune with industry average which is a bit depressing after having such a high margins, the attributable reason being a lower sales growth YoY.  Company falls on lower side when it comes to Retention Ratio and hence shows a reason for its slow growth in sales and its CAPEX needs are lower attributable from lower retention ratio since debt for company is almost nil.  Over the considered years company has constantly maintained EBIT Margins and Net Profit Margins at a level which is among the best in industry. The impressive thing being maintaining these figures despite such a huge turnover and regularly depressing margins.  Having established itself as the safest company to invest, it still maintains an ROCE an level which is much higher than industry average and better than most of its peers in segments in which it operates  Asset Turnover Ratio of Company is very impressive and this is why the CAPEX needs for company is very low and hence lower retention ratio. There has been

33

marginal drop in the figures over the years but at present this drop doesn't hold much significance.

By the Value Benchmark method the price calculated is coming out to be Rs. 1491 while the current market price is around Rs. 1454. Thus we can conclude that the stock’s intrinsic value is higher and it’s undervalued and investors should invest in this stock.

34

SWOT ANALYSIS

STRENGTHS

WEAKNESSES

 Leadership position in many high volume high margin segments (branded and generics) in domestic markets.

 Issues with procurement of API highlights optimization issues in supply chain.  A slow sales growth of 3%-4% despite domestic industry growth of around 12% and the major sectors in which it operates growing more than domestic industry average.

 More than 90% of company’s revenue being generated domestically which is outperforming sectors growth globally and is going to do so for coming years.  Strong portfolio of vaccines and still growing which have their evergreen growth in terms of revenue.

 Low R&D expenditure, to the tune of .74% of revenue could mean lost opportunity for new product launches and non utilization of its domestic market position in optimal manner.

 Very impressive figures in most cases when it comes to financial outlook, one of the best in industry.  Strong cash position, No leverage risk and hence an assured investor and so a low return demand. OPPORTUNITIES

THREATS

 Its foray into CNS, CVS, Oncology, and Diabetology in domestic market can turn out to be a boon for company since they are fast growing segment with some of them having growth of 30%.

 Price controls and non-favorable regulations could hurt company's fortunes badly.  Continued issues with its supply chain could hurt its operational efficiency and hence margins.

 Global arms likely decision to make this subsidiary a manufacturing hub for its products could mean more revenue for firm.

 In its pursuit for achieving inorganic growth in few segments of its operation e.g. Generics if not executed properly could mean issues with management and could question future sustainability and profitability for company keeping in mind its lower sales growth.

 Its recent acquisition outlook in generic space could lead it to achieve inorganic growth in near term.

EXHIBIT 33

35

REFERENCES  E & Y Pharmaceutical Industry Report 2008  Newspaper Articles 

Annual Report of Companies

 www.moneycontrol.com

36

APPENDIX CIPLA LTD ESTIMATED B/L SHEET Particulars

Mar 2009

No of Months

Mar 2010 12

12

50216.4

Gross Sales Less :Inter divisional transfers

0

Less: Sales Returns

0

Less: Excise

610.40

Net Sales

49606

Other Income

3661.7

Total Income

53267.7

64185.14

EXPENDITURE : Increase/Decrease in Stock

-1135.50

Raw Materials Consumed

24609.50

Power & Fuel Cost

917.10

Employee Cost Other Manufacturing Expenses

2428.60 5998.40

General and Administration Expenses

2453.60

Selling and Distribution Expenses

3755.90

Miscellaneous Expenses

3186.80

Less: Pre-operative Expenses Capitalised

0

Total Expenditure

42214.4

Operating Profit

11053.30

Interest

522.3

PBDT

10531.00

Depreciation

1517.9

Profit Before Taxation & Exceptional Items Exceptional Income / Expenses Profit Before Tax

9013.10

10245.7

0

0 10245.7 1174.27 9071.4

9013.10 1245

Provision for Tax

7768.1

Profits After Tax

12867.10

Appropriations Equity Dividend %

100.00

Earnings Per Share

9.99

Book Value

55.86

37

53230.0 10955.1 1129.9 12085.0 1839.4

PRICE ESTIMATION Particulars No of Months Gross Sales

Mar 2009 12 50216.4

Mar 2008

CAGR

Mar 2007

12 40885.6

12 35331.7

Less :Inter divisional transfers

0

0

0

Less: Sales Returns

0

0

0

610.40

906.60

949.30

Less: Excise Net Sales

49606

39979

34382.4

Other Income

3661.7

3403.1

2305.5

Total Income

53267.7

43382.1

36687.9

0.20

EXPENDITURE : Increase/Decrease in Stock

-1135.50

-413.70

307.30

Raw Materials Consumed

24609.50

21013.30

16948.50

917.10

969.00

867.10

Employee Cost

2428.60

2279.10

1620.50

Other Manufacturing Expenses

5998.40

3568.00

2998.70

General and Administration Expenses

2453.60

2430.50

1750.00

Selling and Distribution Expenses

3755.90

2846.30

2260.80

Miscellaneous Expenses

3186.80

818.70

709.90

0

0

0

Power & Fuel Cost

Less: Pre-operative Expenses Capitalised Total Expenditure Operating Profit Interest PBDT Depreciation Profit Before Taxation & Exceptional Items Exceptional Income / Expenses Profit Before Tax Provision for Tax Profits After Tax Appropriations Equity Dividend % Earnings Per Share Book Value

Earning Per Share (Rs) Equity Dividend (%) Book Value (Rs) Dividend Payout Ratio Average Dividend Payout Net Profit Margin Asset Turnover

42214.4 11053.30 522.3 10531.00 1517.9

33511.2 9870.90 180.5 9690.40 1306.8

27462.8 9225.10 111.6

1.16

9113.50 1033.7

9013.10

8383.60

8079.80

0

0

0

9013.10

8383.60

8079.80

1245

1369.3

1399.5

7768.1

7014.3

6680.3

12867.10

10917.80

9722.30

100.00

100.00

100.00

9.99

9.02

8.59

55.86

48.20

41.52

9.99

9.02

8.59

100

100

100

55.86

48.2

41.52

20.2

22.2 18.81

23.3

0.16 0.95

0.18 0.94

0.19 1.05

38

0.83

0.21

-0.06

-0.07

Leverge Return on Equity (%) Book Value Per Share Earnings Per Share Dividend Payout Ratio Dividend Per Share CAGR (Sales) % CAGR (EPS) % CAGR (DPS) % Average Retention Rate Average Return on Equity Sustainable Growth Rate Beta (Historical Data Estimate) Price (Beginning) Price (Ending) P/E (Prospective) P/BV (Retrospective) Estimated EPS (As per calculations) Market Return (Data Compiled) % Risk Free Rate Cost of Equity Growth Rate of Dividends P/E Price

1.22 18.07 56.00

1.15 19.10 48.00

1.04 21.21 41.52

9.99

9.02

8.59

0.2 2 0.40 0.16 0.00 0.78 19.46 15.25 0.8 220 219.75 22.02 0.01

0.22 2

0.23 2

236 219.75 26.16 0.01

258 235.7 30.03 0.01

12.25 Average of 22 past 3 years 8 19.2 0 24.00 294.094445

39

GLENMARK PHARMACEUTICALS ESTIMATED B/L SHEET 2008 Particulars 12 No of Months Income Sales Turnover 1413.32 Excise Duty 33.49 Net Sales 1379.83 Other Income 1.4 Stock Adjustments 30.2 Total Income 1411.43 Expenditure Raw Materials 467.47 Power & Fuel Cost 17.02 Employee Cost 108.91 Other Manufacturing Expenses 20.52 Selling and Admin Expenses 252.8 Miscellaneous Expenses 40.44 Preoperative Exp Capitalised 0 Total Expenses 907.16 Operating Profit 502.87 Interest 43.64 PBDT 460.63 Depreciation 29.44 Other Written Off 0 Profit Before Tax 431.19 Extra-ordinary items 0 PBT (Post Extra-ord Items) 431.19 Tax 42.16 Reported Net Profit 389.02 Total Value Addition 439.68 Preference Dividend 0 Equity Dividend 17.15 Corporate Dividend Tax 2.92 Per share data (annualised) Shares in issue (lakhs) 2487.26 Earning Per Share (Rs) 15.64 Equity Dividend (%) 70 Book Value (Rs) 41.34

40

2009 12

2204.867

1664.388 540.479 69.01276 609.4918 38.20639 571.2854 571.2854 64.52301 506.7624

Particulars No of Months

PRICE ESTIMATION Mar '06

Mar '07

Mar '08

12

12

12

620.83 55.5 565.33 14.38 -1.33 578.38

838.75 28.96 809.79 18.24 50.8 878.83

1413.32 33.49 1379.83 1.4 30.2 1411.43

Income Sales Turnover Excise Duty Net Sales Other Income Stock Adjustments Total Income Expenditure Raw Materials Power & Fuel Cost Employee Cost Other Manufacturing Expenses Selling and Admin Expenses Miscellaneous Expenses Preoperative Exp Capitalised Total Expenses Operating Profit PBDIT Interest PBDT Depreciation Other Written Off Profit Before Tax Extra-ordinary items PBT (Post Extra-ord Items) Tax Reported Net Profit Total Value Addition Preference Dividend Equity Dividend Corporate Dividend Tax Per share data (annualised) Shares in issue (lakhs) Earning Per Share (Rs) Equity Dividend (%) Book Value (Rs)

200.45 8.66 60.11 18.26 147.61 23.07 0 458.16 105.84 120.22 17.45 102.77 17.48 0 85.29 0 85.29 18 67.3 257.7 1.4 8.31 1.36

309.56 15.17 78.21 16.86 187.58 37.81 0 645.19 215.4 233.64 39.36 194.28 23.46 0 170.82 -2.04 168.78 33.97 134.8 335.63 0.69 9.58 1.44

467.47 17.02 108.91 20.52 252.8 40.44 0 907.16 502.87 504.27 43.64 460.63 29.44 0 431.19 0 431.19 42.16 389.02 439.68 0 17.15 2.92

1187.21 5.55 35 25.16

1200.58 11.17 40 37.5

2487.26 15.64 70 41.34

Total Assets Equity

1046.79 318.75

1357.66 450.16

1552.79 1028.25

0.11

0.16

0.28

Net Profit Margin

41

CAGR

0.56

0.75

0.58 0.30

0.53

Asset Turnover Leverge Return on Equity (%) Book Value Per Share Earnings Per Share Dividend Payout Ratio Average Dividend Payout Dividend Per Share Retention Rate Sustainable Growth Rate CAGR (Sales) % CAGR (EPS) % CAGR (DIVIDENDS) Average Retention Rate Average Return on Equity Sustainable Growth Rate Beta (Historical Data Estimate) Price (Beginning) on NSE Price (Ending) on NSE Price (Average) P/E (Prospective) P/BV (Retrospective) Estimated EPS (As per calculations) Market Return (Data Compiled) % Risk Free Rate Cost of Equity Growth Rate of Dividends P/E Price

0.59 3.28 0.21 25.16 5.55 0.12 0.70 0.88 0.19 0.51 0.68 0 0.08 0.30 0.8 148.7 161.75 155.23 27.97 6.17 10.72 16.50 8.00 14.8 0.00 19.75 211.807854

42

0.62 3.02 0.30 37.5 11.17 0.07 7.95 0.80 0.93 0.28

0.91 1.51 0.38 41.34 15.64 0.04

157.53 307.48 232.51 20.82 6.20

305.63 489 397.32 25.40 9.61

0.70 0.96 0.36

GLAXO SMITHKLINE PHARMA ESTIMATED B/L SHEET Particulars

Dec 2008

No of Months

Dec-09

12 17014.72

Gross Sales Less :Inter divisional transfers

0

Less: Sales Returns

0

Less: Excise

1586.94

Net Sales

15427.79

Other Income

954.8

Total Income

16382.59

19434.605

EXPENDITURE : Increase/Decrease in Stock

-460.49

Raw Materials Consumed

4706.85

Power & Fuel Cost

442.42

Employee Cost

1664.53

Other Manufacturing Expenses

3848.06

General and Administration Expenses

835.90

Selling and Distribution Expenses

1942.95

Miscellaneous Expenses

72.35

Less: Pre-operative Expenses Capitalised

0

Total Expenditure

13052.57

Operating Profit

3330.02

Interest

69.66

PBDT

3260.36

Depreciation

419.5

Profit Before Taxation & Exceptional Items Exceptional Income / Expenses

2840.86

16224.135 3210.47 97.83 3308.30 415.76 2892.54

0

Profit Before Tax

2840.86

Provision for Tax

957.54

Profits After Tax

1883.32

Appropriations

1883.32

Equity Dividend %

150.00

Equity Dividend

209.57

Earnings Per Share

44.78

Book Value

180.92

Shares in issue (lakhs)

873.23

43

2892.54 1174.6206 1717.92

PRICE ESTIMATION Particulars No of Months

Dec 2008

Dec 2007

Dec 2006

12

12

12

17014.72

13955.05

12142.53

Less :Inter divisional transfers

0

0

0

Less: Sales Returns

0

0

0

Less: Excise

1586.94

1176.77

1023.17

Net Sales

15427.79

12778.28

11119.36

Other Income

954.8

688.6

521.8

Total Income

16382.59

13466.88

11641.16

Increase/Decrease in Stock

-460.49

-229.31

-24.21

Raw Materials Consumed

4706.85

3476.56

2750.54

Power & Fuel Cost

442.42

304.37

299.30

Employee Cost

1664.53

1499.90

1286.39

Other Manufacturing Expenses

3848.06

3114.42

1673.89

General and Administration Expenses

835.90

682.09

1785.01

Selling and Distribution Expenses

1942.95

1647.26

1480.94

72.35

39.34

21.24

0

0

0

Total Expenditure

13052.57

10534.63

9273.1

Operating Profit

3330.02

2932.25

2368.06

69.66

46.11

35.32

3260.36

2886.14

2332.74

419.5

434.94

427.09

2840.86

2451.20

1905.65

0

0

0

Profit Before Tax

2840.86

2451.20

1905.65

Provision for Tax

957.54

824.45

636.32

Profits After Tax

1883.32

1626.75

1269.33

Appropriations

1883.32

1626.75

1269.33

Equity Dividend %

150.00

120.00

100.00

Equity Dividend

209.57

237.17

262.58

Earnings Per Share

44.78

38.68

30.18

Book Value

180.92

153.69

129.05

Shares in issue (lakhs)

873.23

847.03

847.03

Total Assets Shareholder's Funds

7608.79 7608.79

6463.5 6463.5

5427.19 5427.19

0.12 2.24 1

0.13 2.16 1

0.11 2.24 1

Gross Sales

CAGR

0.19

EXPENDITURE :

Miscellaneous Expenses Less: Pre-operative Expenses Capitalised

Interest PBDT Depreciation Profit Before Taxation & Exceptional Items Exceptional Income / Expenses

Net Profit Margin Asset Turnover Leverge

44

0.83 0.40 -0.01

0.23

Return on Equity (%) Book Value Per Share Earnings Per Share Dividend Payout Ratio Average Dividend payout Dividend Retention Ratio CAGR (Sales) % CAGR (EPS) % CAGR (DPS) % Average Retention Rate Average Return on Equity Sustainable Growth Rate Beta (Historical Data Estimate) Price (Beginning) Price (Ending) Price (Average) P/E (Prospective) P/BV (Retrospective) Estimated EPS (As per calculations) Market Return (Data Compiled) % Risk Free Rate Cost of Equity Growth Rate of Dividends P/E Price

0.27 20.72 215.67 0.11 15.00 0.85 1.78 0.76 4.64 0.85 0.27 0.23 1.19 1135.35 1150 1142.675 5.30 55.15 83.36 16.50 8.00 18.12 46.39 17.89 1491.39

45

0.27 18.14 192.05 0.15 1.55 12.00

0.26 15.24 149.86 0.21

1162.95 1130 1146.475 5.97 63.19

1121.75 1168.9 1145.325 7.64 75.17

7.00