A

PROJECT REPORT ON FUNDAMENTAL ANALYSIS OF SELECTED COMPANIES OF PHARMACEUTICALE SECTOR IN INDIAN CAPITAL MARKET

UNDERTAKEN

AT

MOTILAL OSWAL SECURITIES PVT.LTD.SURAT

SUBMITTED BY

PATEL MIRAL.R

(TYBBA FINANCE)

UNDER GUIDANCE OF

MR.HETAL MEHTA

SUBMITTED TO

VIVEKANAND COLLEGE FOR BBA

VEER NARMAD SOUTH GUJARAT UNIVERSITY

SURAT

ACADEMIC YEAR:2011-2012

COLLEGE CERTIFICATES

COMPANY CERTIFICATES

DECLARATION

I here by declare that this Project Report entitled FUNDAMENTAL ANALYSIS OF PHARMACEUTICALE SECTOR in MOTILAL OSWAL SECURITES PVT.LTD submitted in the partial fulfillment of the requirement of Bachelor of Business Administration (BBA) of VIVEKANAND COLLEGE,SURAT is based on secondary data collected by me in various department ,books ,magazines and websites & Colleted by me.

DATE:

Patel .Miral R

(BBA SEM VI)

ACKNOWLEDGEMENT

Preservation , inspiration and motivation have always played a key role in the success of any venture. In the preset world of competition and success , training is like a bridge between theoretical and practical working; willingly I prepared this particular project.

I have pleasure in grabbing the opportunity of expressing gratitude to all those who have helped me directly or indirectly during the completion of my entire project work.

First of all I would like to thank the supreme power , the almighty god , who is the one who has always guided me to work on the right path of my life. I would like to thank to VIVEKANAND COLLEGE for giving me best opportunity by organizing winter training for taking practical knowledge I express my sincere thanks to MR.HETAL MEHTA & other faculty members of B.B.A. department , for the valuable suggestion and making this project successful. I have completed my training in a company named Motilal Oswal Securities Pvt.Ltd. I extend heartiest gratitude to Mr. Kishor for granting me permission to undertake the training in their esteemed organization.

To make anything successful , needs help & co-operation from people involved directly or indirectly. I would like to thank

I would like to express my whole heartedly thanks to other employees of motilal oswal company who has helped me in my study and their guidance , suggestion and constant encouragement throughout the course of the project and without their support completion of the project is not possible.

EXECUTIVE SUMMARY
In this industry detail I have under stood the industry detail for the project for my project I have gave the detail History and explanation of share market industry, broking industry and the some point on E-trading industry. In company detail I have give explanation on my company in which I have taken general training of company in MOTILAL OSWAL SECURITY LTD. I have good experience in Motilal Oswal Security Ltd. About the Indian market and requirement for opening account in the trading company concept established in 1987 and in present it becomes very reputed broking firm in across India. In chapter of objective, I have mentioned about my objective that to know the references of share market investors. In chapter of limitation I have mentioned my limitations of project like limitations to include some questions and some important points in my project. Also I have limited time and budget for my project. In chapter of finding and analysis I have done my analysis, with providing complete tabulation and classification of data. I used chart for my analysis and I gave interpretation in my project with finding and suggestion for broking companies of india. I have mentioned my finding for broking companies like to solve the technological problem of online trading, technological problem of offline trading. And also try to see the reason of one-share market investors to select online and offline trading to use it for another customer by marketers. In chapter of conclusion and suggestions, mentioned about the conclusion given to the broking companies about the preference of online trader and offline trader while selecting their trading way for investing in share market. And I have given the solution to broking companies to solve the problems of online and offline users. I have been provided the suggestion to broking companies to attract more and more clients. In last chapter I mentioned about the bibliography and in that I mentioned about the sources used by me to prepare my project report. At last I have provide annexure I provide that things which I not included in my process till now.

INDEX

Sr. no

Topic

Page no.

1 2 3 4 5 6 7 8 -

Industry profile Company profile Theoretical aspects Research methodology Data analysis Findings Conclusion Recommendation Bibliography Annexure

1 10 16 40 45 159 161 162 163 164

INDUSTRY PROFIL INTRODUCTION OF STOCK MARKET

A stock market is a market for the trading of company stock, and derivatives of same; both of these are securities listed on a stock exchange as well as those only traded privately. The term 'the stock market' is a concept for the mechanism that enables the trading of company stocks (collective shares), other securities, and derivatives. Bonds are still traditionally traded in an informal, over the counter market known as the Commodities are traded in commodities market, and derivatives are traded in a variety of markets (but, like bonds, mostly 'over-the-counter'). The stocks are listed and traded on stock exchanges which are entities specialized in the business of bringing buyers and sellers of stocks and securities together. The stock market is one of the most important sources for companies to raise money. This allows businesses to go public, or raise additional capital for expansion. The liquidity that an exchange provides affords investors the ability to quickly and easily sell securities. This is an attractive feature of investing in stocks, compared to other less liquid investments such as real estate.

CAPITAL MARKET
Capital market deals with long term funds. It supplies long term and medium term funds. Capital market deals with ordinary shares, stocks, debentures and bonds of corporation and securities of the govt. the funds which flow into the capital market comes from savers. Since 1951, the Indian capital market has been broadening slowly. The volume of savings and investment, have started showing 8

steady improvement. and further, there are various institutions, which operate in the capital market give quantitative and qualitative direction to the flow of funds and bring rational allocation of resources.

FUNCTION OF CAPITAL MARKET

1) The organized and regulated capital market motivates individual to save and invest funds. The availability of safe and profitable source of investment is an essential criteria to create propensity to save and invest on the part of the earning public. 2) It provides the investors safe and productive channels for investment of savings and secures the recurring benefit of return thereon, as long as the savings are retained. 3) It provides liquidity to the savings of the investors, by developing a secondary capital market, and thus makes even short term savings, consistently available for long-term users 4) It thus mobilizes savings of large number of individuals, families and associations and make the same available for meeting the large capital needs of organized industry, trade and business and for progress and development of the country as a whole and its economy. To discharge these functions, the organized capital market accepts a dual responsibility

To develop the market and to promote savings & Investment; To regulate the players in the market vis--vis the investor and to enforce market discipline, through market regulators and registered intermediaries. Such that the unorganized small man is able to deal through these regulatory bodies and the intermediaries, and need not necessarily has to come into direct contact with the ultimate seekers of his savings.

COMPOSITION OF CAPITAL MARKET

1. One the one hand are the innumerable, but not organized savers, and 9

2. At the other end are those seeking capital from the capital market; 3. Regulatory Body

SEBI (the Securities & Exchange Board of India) an autonomous and statutory body acts as the market regulator and market developer. It regulates and controls the capital users and all functionaries between the users and the investors. 4. The Stock Exchanges

There are 23 Stock Exchanges registered with SEBI and under its regulation. They provide a transparent and safe (risk-free) forum of a market for investors to transact and invest their funds.

The structures of Capital Market are as follow.

CAPITAL MARKET MARKETABLE SECURITIES GOVT SECURITI ES CORPORAT E SECURITIE S DEBT INSTRUM E-NT MUTUAL FUND BANK DEPOSI T NONMARKETABLE SECURITIES COMPANY DEPOSIT POST OFFICE LOAN AND ADVANC ES

MARKETABLE SECURITIES
Marketable securities are those which can easily transfer from one person to another person. These are issued through new issue market and traded through stock market.

NON-MARKETABLE SECURITIES
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Non- Marketable securities are issued by Post office as saving certificate, deposits; deposits with Bank and Financial Instiutions, Loan & advances from Bank & Financial Institutions etc.

MEANING OF STOCK EXCHANGE

Stock exchange represents an organized market in trading of securities. Stock exchange is established with the main purpose of providing a market place for the members to deal in securities. Stock exchanges are indispensable for the proper functioning of corporate enterprises. Stock exchange helps the investors, ready and continuous market, negotiability, liquidity and safety of investments. According to securities contracts (regulation) Act 1956, stock exchange means anybody or individuals, wherever incorporated or not constituted for the purpose of assessing, regulation or controlling the business of buying, selling or dealing in securities. According to this Act, a security includes shares, scrips, stocks, bonds, debentures or other marketable securities.

HISTORY OF STOCK EXCHANGE

Exchange arises in Europe in 16th century. Trading was carried on in those exchanges in terms of securities. The London stock exchange was tended to deals only in company shares at that time. It may also consider as the earliest of modern type of stock markets. 1860, the exchange flourished with 60 brokers. In fact the 'Share Mania' in India began with the American Civil War broke and the cotton supply from the US to Europe stopped. Further the brokers increased to 250.At the end of the war in 1874, the market found a place in a street (now called Dalal Street). and The National 11

Stock Exchange Of India (NSE) was incorporated in November 1992 as taxpaying company.

LISTING OF SECURITIES
Listing means admission of securities to dealings on a recognized stock exchange of any incorporated company, central & state Governments, Quasi Governmental and other financial institution, municipalities, electricity, housing boards etc. Stock Exchange means any body of individuals, whether incorporated or not, constituted for the purpose of assisting, regulation or controlling the business of buying, selling or dealing of securities. Every recognized stock exchange i.e. a stock exchange which is for the time being recognized by the central Govt. under section 4 of the securities regulation Act, 1956, has the power to make bye-laws for the listing of securities on the stock exchange. Securities are bought and sold in a recognized stock exchange are known as Brokers. The price at which the securities are bought and sold on a recognized stock exchange is known as official Quotation .

FUNCTION OF STOCK EXCHANGE

Stock exchange is established with the main purpose of proving a market place for the members to deal in securities under well laid down regulation and the protect the interest of the investors. Thus, the functions are as follow.

Facilitate continuous, ready and open market for selling and buying securities.

Provide quotation for share/ stock for facilitate trading and marketability. 12

Extend liquidity to such stock as they are easily marketable security traded. Promote savings and investment in the economy by attracting funds from the investors.

Allow companies to float their shares on the market. Provide capital to profitable sectors. Ensure safety and fair dealings to all.

CHANGES IN STOCK EXCHANGES

At the initial stages, there was floor trading i.e. people who want to buy or sales where company together and transfer their shares and securities required scrips as per shouting the price of shares for buy or sell it.

(1). Demate form of trading

All scrips are put in Demate for trading in the last few years. By compulsory using of Demate from is increase the volume and increased in liquidity.

(2). Electronics form of trading

Globalization of stock exchange is now on way. The electronics are has come to stock exchange nearly 100 % of all transaction are executed through Electronics Media more and more brokers and sub-brokers are setting into the internet.

(a). On Line trading systems

The SEBI have allowed On Line trading and broker would rush to the web site and trading through web site would increased. On the Internet one would be

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THE STOCK EXCHANGES IN INDIA

1).

BOMBAY STOCK EXCHANGE

(BSE)
Bombay Stock Exchange Limited is the oldest stock exchange in Asia with a rich heritage. Popularly known as "BSE", it was established as "The Native Share & Stock Brokers Association" in 1875. It is the first stock exchange in the country to obtain permanent recognition in 1956 from the Government of India under the Securities Contracts (Regulation) Act, 1956.The Exchange's pivotal and pre-eminent role in the development of the Indian capital market is widely recognized and its index, SENSEX, is tracked worldwide. The Exchange has a nation-wide reach with a presence in 417 cities and towns of India. The systems and processes of the Exchange are designed to safeguard market integrity and enhance transparency in operations. During the year 2004-2005, the trading volumes on the Exchange showed robust growth. The Exchange provides an efficient and transparent market for trading in equity, debt instruments and Derivatives

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2). NATIONAL STOCK EXCHANGE(NSE)

The National Stock Exchange of India (NSE) was incorporated in November 1992 as a tax-paying company. It is recognized under Securities Contracts (Regulation) Act, 1956 in 1993 as a stock exchange. In June 1994, it commenced operations in the Wholesale Debt Market (WDM). In November, the same year, the Capital Market (Equities) segment commenced operations and the Derivatives segment in June 2000. NSE can handle up to 6 million trades per day in Capital Market segment. In order to capitalize on in-house expertise in technology, NSE set up a separate company, NSE.IT, in October 1999. The Exchange currently manages its data centre operations, system and database administration, design and development of in-house systems and design and implementation of telecommunication solutions.

NSE is one of the largest interactive VSAT based stock exchanges in the world. Today it supports more than 3000 VSATs. The NSE- network is the largest private wide area network in the country and the first extended C- Band VSAT network in the world. Currently more than 9000 users are trading on the real time-online NSE application.

MEANING OF STOCK MARKET INDEX

An index is benchmark for measuring the performance of fund managers and is a comprehensive measure of market trends, intended for investors who are concerned with general stock market price movements. An Index comprises stocks that have large liquidity and market capitalization. Each stock is given a weight age in the Index equivalent to its market capitalization. It has practical applicable too in the world of finance. Both BSE & NSE has launched index futures based on the S & P, CNX Nifty and BSE Sensex 15

receptively. In global market for index services and their applications is a multitrillion rupees industry.

FUNCTIONS OF STOCK INDEXES

The most important function of stock index is that they are very useful as an investment tool. Suppose when there is a rise in the index by 2% then the index of the mutual fund will also rise by 2%. So you can expect a rise in cash as it has tremendous advantages of lower costs. There are different types of mutual funds like passively managed mutual funds which have been showing outperform results in the indexes on a consistent basis. Suppose a mutual fund is based on an index, then it would duplicate whatever holdings the index is based on. This is the main reason you see the BSE or NSE rising by one percentage point when the BSE-based funds rises by one percent. In todays life investors get many options to invest in stocks and shares. But if you are a novice investor, then it is very important that you go for an experienced stock market tips provide that is consultant who could guide you in your investment and also tell you more about stock index.

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COMPANY PROFILE
BACKGROUND
The company was formed in 1987 by Motilal Oswal and Raamdeo Agrawal after they acquired membership on The BSE. Motilal Oswal was elected director and joined the Governing Board of The Bombay Stock Exchange in 1998. Motilal Oswal Securities is a Depository Participant of NSDL and a Depository Participant of Central Depository Services Limited (CDSIL) in 2000. The company started offering Derivatives products and advisory services on both BSE as well as NSE in 2001. In 2006, the company entered Private Equity and Investment Banking business. In the same year, Motilal Oswal group acquired South Indian brokerage firm Peninsular Capital Markets. The company tied up with State Bank of India and Punjab National Bank in 2006 and 2007 to offer online trading to its customers. 2008 saw the company create one of India's largest Equity Dealing & Advisory rooms, spread over 26,000 sq ft (2,400 m2) in Malad, Mumbai. In January 2010, Motilal Oswal Financial Services (through its subsidiary Motilal Oswal Securities Ltd.) received the final certificate of registration approval from Securities and Exchange Board of India (SEBI) to set up a mutual fund business in the country. Motilal Oswal continues to spam question and answer websites to get free advertising. This probably means that the company does not have an advertising budget. It is probably safest to steer well clear of a company in such a penurious state. Motilal Oswal Financial Services Ltd is a well-diversified financial services company focused on wealth creation for all customers, such as institutional, corporate, HNI and retail. The company's services and product offerings include wealth management, retail broking and distribution, institutional broking, asset management, investment banking, private equity and commodity broking. They distribute these products through 1,289 business locations spread across 548 cities and the online medium to 17

over 541,372 registered customers. The company has strong research capabilities, which enables to identify market trends and stocks with high growth potential, helping clients to take well-informed and timely decisions. The company is headquartered in Mumbai. The company's subsidiaries include Motilal Oswal Securities Ltd (MOSL), which is engaged in stock broking, wealth management and distribution of financial products; Motilal Oswal Capital Markets Pvt Ltd, which is engaged in stock broking; Motilal Oswal Commodities Broker Pvt Ltd, which is engaged in commodities broking; Motilal Oswal Private Equity Advisors Pvt Ltd, which is engage in private equity management and advisory, Motilal Oswal Investment Advisors Pvt Ltd, which is engaged in investment banking, and Antop Trader Pvt Ltd, which is engaged in lease rental. Motilal Oswal Financial Services Ltd was incorporated on May 18, 2005 and received the certificate of commencement of business on June 3, 2005. The company was established to offer financial services and products. In the year 2006, Motilal Oswal Securities Ltd became a subsidiary of the company upon shares of MOSL from the promoters Motilal Oswal and Raamdeo Agrawal and some members of promoter group. Also, Motilal Oswal Commodities Broker Pvt Ltd became a subsidiary of the company upon acquisition of shares from promoter, During the year, the company acquired Motilal Oswal Venture Capital Advisors Pvt Ltd and Motilal Oswal Investment Advisors Pvt Ltd from promoters Motilal Oswal and Raamdeo Agrawal and thus those companies became the subsidiaries of the company. Also, Motilal Oswal Securities Ltd acquired customer rights and other assets of Peninsular Capital Markets Limited, broking entity based in Kerala. During the year 2007-08, the company implemented a fully automated web-based back office application for mutual fund distribution, which can be accessed across the country. Also, Motilal Oswal Capital Markets Pvt Ltd became the subsidiary of Motilal Oswal Securities Ltd and, in turn of the company. During the year, the company made an Initial Public Offer (IPO) of 2,982,710 equity shares of Rs. 5 each in the price band of Rs. 725 - Rs. 825 per share. The issue constituted 10.50% of the paid-up share capital of the company. The Shares were allotted on September 5, 2007 18

and got listed on Bombay Stock Exchange Ltd and National Stock Exchange of India Ltd on September 11, 2007. During the year 2008-09, Antop Traders Pvt Ltd became the subsidiary of Motilal Oswal Securities Ltd and, in turn subsidiary of the company. Subsequent to the yearend, Motilal Oswal Insurance Brokers Pvt Ltd and Motilal Oswal Asset Management Company Ltd became the subsidiaries of the company. During the year, the company and Passionate Investment Management Pvt Ltd received in-principle approval from the Securities Exchange Board of India (SEBI) for setting up a mutual fund business in India. During the year 2009-10, the company, jointly with their subsidiary Motilal Oswal Securities Ltd, acquired an office building at Prabhadevi in Mumbai for a consideration of Rs. 164.58 crore. Also, Motilal Oswal Asset Management Company became 100% subsidiary of Motilal Oswal Securities Ltd, which is a subsidiary of the company.

Company History - Motilal Oswal Financial Services The Issuer was incorporated under the Companies Act as Motilal Oswal Financial Services Limited vide Certificate of Incorporation No. 11- 153397 dated May 18, 2005 issued by the ROC and received the certificate of commencement of business on June 3, 2005. The Issuer, along with its Subsidiaries, offers a diversified range of financial products and services such as retail wealth management including commodities broking, portfolio management services and institutional broking, investment banking services, and venture capital management and advisory. Mr. Motilal Oswal and Mr. Raamdeo Agrawal initially conducted business as subbrokers. Around 1990 Mr. Motilal Oswal acquired membership of the BSE Subsequently, Vasant Holding Private Limited (VHPL), a group company acquired the membership of the NSE in 1994.

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On July 5, 1994, Deo Securities Private Limited was incorporated by Mr. Motilal Oswal and Mr. Raamdeo Agrawal to carry on the business of stock broking and other financial services.

On August 22, 1995 Mr. Motilal Oswal and Mr. Raamdeo Agrawal incorporated another company, Motilal Oswal Stock Brokers (I) Limited, for carrying on the broking and asset management activities.

The name Motilal Oswal Brokers (I) Limited was changed to Motilal

Oswal

Securities Limited, on February 12, 1996. Pursuant to the order dated January 21, 1999 passed by the Hon'ble High Court of Judicature at Bombay, sanctioning the scheme of amalgamation of VHPL with Motilal Oswal Securities Limited, the entire business and undertakings and all properties, interests and assets of VHPL were transferred to Motilal Oswal Securities Limited. With a view to achieving better and more profitable utilisation of the primary and secondary markets and also the growth in mutual fund industry, Motilal Oswal Securities Limited was restructured. The retail and institutional stock broking division was hived off to Deo Securities Private Limited along with its facilities of in-house equity research, pursuant to the Scheme of Arrangement sanctioned by the Hon'ble High Court on October 19, 2000. Thus, Motilal Oswal Securities Limited continued to carry on the activities of investments, while Deo Securities Private Limited carried on the activity of stock broking. On November 30, 2000, Motilal Oswal Securities Limited was renamed Motilal Oswal Investments Limited and subsequently changed to Motilal Oswal Investments Private Limited on December 12, 2002. Deo Securities Private Limited was renamed as Deo Securities Limited on November 14, 2000 and was subsequently changed to Motilal Oswal Securities Limited and received fresh certificate of incorporation on November 30, 2000. Motilal Oswal Investments Private Limited was renamed as Passionate Investment Management Private Limited (PIMPL), and received a fresh certificate of incorporation on February 23, 2006.

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It's one of the great investment contradictions. Yes, stock investors do all kinds of goofy things. No, beating the market isn't easy. On the face of it, this seems absurd. If some folks behave irrationally, others should be able to make money at their expense. Yet, as is patently clear from the long-run market-lagging performance of most stock, it is awfully difficult to beat the market. This isn't just an issue of how to manage money. It is also a raging debate among finance professors. For years, the prevailing academic wisdom was that the stock market was highly efficient, with prices set by rational investors. But lately, that notion has come under assault from behavior list, who argues that market movements aren't adequately explained by traditional economic models. No doubt about it, irrationality is on display everywhere. Why do investors trade so much? All that buying and selling can't be rationally justified. Why do companies bother splitting their stocks, say, and two for one? All it means is that shareholders now have twice as many shares, each with a 50% smaller claim on the company's earnings. Why do companies pay dividends? From the standpoint of taxes, it makes far more sense to buy back stock. Yet shares often rise after a company announces a dividend increase. "It doesn't look to me like markets behave as if investors are rational," says Richard Thaler, an economics professor at the University of Chicago. "Everybody agrees that there are some irrational investors out there," Mr. Thaler says. "The controversial question is whether they set prices. The behavior list line is that they do some of the time. The efficient-market line is that prices are set by rational traders." Not all behavioral quirks hurt market efficiency. Many investors, for instance, are excessively self-confident. This shows up in investors' ill-advised tendency to trade too much and to bet heavily on a limited number of stocks. But it also manifests itself in the huge effort made to find undervalued stocks. Mr. Rubinstein says. "But what this means is that active manager spending too much on research. It makes the markets too efficient. It's like a gold mine where most of the gold has already been taken out. Occasionally, you'll find some, which will egg you on. But it's just not cost-effective to keep mining." Mr. Thaler says the validity of behavioral economics doesn't hinge on being able to beat the market. "It could be that stock prices were wildly irrational, but unpredictable," he says. "If so, it wouldn't be possible to make money". Indeed, 21

even if you buy the behavior list argument that the markets aren't entirely efficient -and the evidence is compelling -- that doesn't mean you should try to beat the market. "Markets aggregate those mistakes. But in the aggregation, the errors become smaller than those made by individuals. The Efficient Market Hypothesis (EMH) says that at any given time, asset prices fully reflect all available information. The chief corollary of the idea that markets are efficient, that prices fully reflect all information, is that price movements do not follow any patterns or trends. This means that past price movements cannot be used to predict future price movements. In the world of the strong form EMH, trying to beat the market becomes a game of chance not skill. There will be superior performers generating better investment returns but only because statistically there are always some people above the average and others below. Hence, debate about the EMH becomes a question of whether active portfolio management works: is it possible to beat the market or are you better off avoiding the transactions costs and simply buying an index fund? The idea of informational efficient markets; the greater the number of participants, the better their training and knowledge and the faster the dissemination of information, the more efficient a market should be; and the more efficient the market, the more random the sequence of price changes it generates, until in the most efficient market, prices are completely random and unpredictable. Similarly, if everyone believes the market is efficient, then it will no longer be efficient since no one will invest actively. In effect, efficient markets depend on investors believing the market is inefficient and trying to beat it.

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THEORITICAL ASPECT
ECONOMIC ANALYSIS INDIAN ECONOMY
The Indian economy is one of the fastest growing economies in the world. The Indian economy grew at 9% in 2007-08 and 9.6% in 2006-07 Growth has been supported by market reforms, rising foreign exchange reserves, huge foreign direct investment (FDI) inflows, development in various sector and a flourishing capital market. In this growth rate industrial sector, service sector and manufacturing sector have logged in 10.9%, 11% and 12.3% growth rate respectively in 2006-07. As far as savings and investments are concerned both showed good growth rate as a proportion of GDP. Gross saving rate as a proportion of gross domestic product (GDP) has 34.7% in 2006-07 and gross investment rate has 35.1% in 2006-07. The 2007-08 Fiscal Year. Indias foreign exchange reserve is at US$ 309.72 billon 2007-08. Indian forex reserves stand at US$ 300.01 billion as on August 08, 2008. India achieved a record food grain production of 227 million tones in 2007-08 , Food grain output grew by 4.23% in 2007-08, nearly double the average annul growth of 2% between 1994 and 2004. Overall industrial production grew by 8.5% during 2007-08. Significantly, manufacturing sector grew at the rate of 8.8% and construction at 9.8%. Services grew by 10.8% in 2007-08. The trade, hotels, transport and communication segment grew by 12% , while the financing , insurance , realestate and business services sector grew at 11.8%. Exports grew by 23.02% during 2007-08 amounting to US$ 155.5 billion, imports increased by 27.01% to US$235.9 billion in the same period. Topics to explain in depth about the Indian economy, following points are taken into consideration by me. These factors are really very important to

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know about how Indian economy is being growing and are helpful to clear the picture about the economy. GDP (Gross Domestic Product) Inflation FDI ( Foreign Direct Investment) Industrial Production Index Stock Market Index Fiscal Deficit per capital income FII ( Foreign Institutional Investor)

GDP ( Gross Domestic Product) The gross domestic product (GDP) is one of the measures of national income and input for a countrys economy. GDP is defined as the total cost of all completed goods and services produced within the country in a particular period of time (usually a year). The formulation to compute or measure GDP:

GDP = Consumption + gross investment + government spending + (ExportsImports) Here, Consumption and investment are stands for expenditure on final goods and services. Consumption is further divided in two parts such as private consumption and public or government spending. In gross investment depreciation of capital stock is not taken into consideration otherwise it will be net investment and it will be net investment and it converts the GDP into net domestics product. Export minus import is also called as net exports and this equation adjusts by subtracting the part of expenditure not produced domestically (the imports), and adding back in domestic area (the exports).

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Contribution of Various Sectors in GDP of India for the year 2006-07

Sector contribution Agriculture Industry Service

(%) 8.95 23.78 67.28

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INDUSTRY ANALYSIS
The Pharmaceutical Industry It is often argued that the best case for patents is in the pharmaceutical industry. The indivisibility is large, with estimates of the average cost of bringing a single new drug to market as high as$800 million. Patent protection is more limited than in other industries: because of the lengthy gap between discovery and approval of a new drug, the effective monopoly protection is estimated, since the 1990s, to last only 12 years, apart for extensions. Indeed, according to industry surveys, the only industry in which patents are thought to play an important role in bringing new products to market is the pharmaceutical industry. The pharmaceutical industry is worthy of special consideration also for another, opposite, reason. The technology operated by the pharmaceutical industry the chemical and industrial processes, through which medicines are produced, packaged, and shipped, seems to fit the constant returns to scale hypothesis almost perfectly. That is, the cost of shipping the ten millionth container of medicine is about the same as that of shipping the first. This is why, after all, everyone complains about the pharmaceutical companies not shipping medicines to poor countries The actual few additional cents needed to produce the medicine even poor African consumers would be willing to pay make the withdrawal of supply by big pharma as close to economic crime as anything can be. Under these circumstances we would expect that there are many potential producers of a medicine, and that the industry would be relatively competitive. Yet, since the 1970s, pharmaceutical manufacturing has become quite concentrated with a few large companies holding a dominant position throughout the world and with a few companies producing medicines within each country. Why is this? The industry claims it is because only very large firms can afford the high cost of pharmaceutical R&D.

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Therefore, it is reasonable to ask how strong is the case for patents in pharmaceuticals? If the case is strong, perhaps we need to examine other industries to see if the case for patents might also be strong in those industries. In fact, we shall see that the case for patents in pharmaceuticals is weak and so, apparently, even under the most favorable circumstances patents are not good for society, for consumers, or in this case, for sick people. Patents are good for monopolists, but that much we knew already. History of Pharmaceutical Patents Pharmaceuticals are a significant industry, and of growing significance. In the United States, the share of prescription drugs in total national health care expenditure increased from 4.9% in 1980 to 9.4% in year 2000. New drugs are also extremely costly to develop. Hansen, Grabowski and Lasagna, in 1991, provide the following estimates of the cost in millions of dollars of bringing a new chemical entity to market, assuming a success rate of 23% for patented drugs. Historically, intellectual monopoly in pharmaceuticals has varied enormously over time and space. The summary story: the patent lobbyists have lobbied long and successfully to increase patent protection for pharmaceutical products. Here are the details of their accomplishments. In the U.S. drugs have been patentable since the beginning, for the very simple reason that chemical products have always been patentable. The U.S. recognizes two distinct forms of patent: the process by which a drug is produced may be patented independently of the chemical formula for the drug. Until 1984 U.S. patent law treated medical discoveries in the same way as other innovations, and no special treatment was reserved for drugs. In more recent years, the USPO and the Federal Court of Appeal have began to allow longer and more frequent extensions for drug patents than they do for the rest of patented innovations. For example, the Drug Price Competition and Patent Term Restoration Act of September 24, 1984 (the Hatch-Waxman Act) was designed to compensate for regulatory requirements that 27

delay the introduction of new drugs. It is estimated that it increased effective length of patent protection for pharmaceuticals by about 5 years. In most of continental Europe, until recent years, only the process of producing a drug could be patented, so once a drug was discovered, a second producer could also produce it provided they found a different way of doing so. The rationale behind process Boldrin & Levine: Against Intellectual Monopoly, Chapter 9 versus product patents is given by the German Association of Chemical Industry in a memoire to the Reichstag. They point out that the same chemical product can be obtained by different processes and methods and even starting from initially different materials and components. Hence, there is social value in patenting a new process, as it rewards the innovator without preventing further innovation. There is negative social value in patenting a specific product, as this would exclude all other from producing it, even through different processes. It should be noted, though, that this did not prevent German chemical companies from patenting their products where possible, the United Kingdom and the United States especially.

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COMPANY ANALYSIS
These are the companies which is selected in this fundamental analysis Sun Pharma Ranbaxy Laboratories Limited Dr. Reddys Laboratories Limited Cipla Lupin labs

SUN PHARMA
Sun pharmaceutical Industry Limited type public Founded 1983 Headquarters Mumbai, Maharashtra, India.

HISTORY
Sun Pharma began in 1983 with just 5 products to treat psychiatry ailments. Sales were initially limited to 2 states- West Bengal and Bihar. Sales were rolled out nationally in 1985. Products that are used in cardiology were introduced in 1987, and Monotrate, one of the first products launched at that time has since become one of our largest selling products. Important products in Cardiology were then added several of these were introduced for the first time in India.

Realizing the fact that research is a critical growth driver, we established our research center SPARC in 1993 and this created a base of strong product and process development skills.

Sun pharma was listed o the main stock exchange in India in 1994, and the Rs. 55 corer issue of a Rs.10 face value equity share at a premium of Rs. 140/- was oversubscribed 55 times. The minimum 25% that was required under the regulations then for listing was offered to the public, the owner family continues to hold a majority stake in Sun Pharma. 29

By 1997, our headquarters were shifted to Mumbai, the commercial capital of the country. We began on the fist of our international acquisitions with an initial $7.5 million investment in Caraco Pharm Labs, Detroit. By 2000, we had completed 8 acquisitions, each such move adding new therapy areas or offering an entry to important international markets. A new research center was set up in Mumbai for generic product development for the US market.

In India, as new therapy areas were entered into post acquisition, customer attention, product selection and focused marketing helped us gain a foothold in areas like orthopedics, gynecology, oncology, etc. From a ranking at 38th in 1994, by 2000 we were ranked 5th with a leadership in 8 of the 11 therapy areas that we are present in. The year 2000 was the year of turnaround at the US subsidiary, Caraco, as it began to receive approvals after successful inspection by the USFDA.

In December 2004, a research center spread over 16 acres was inaugurated by the president of India, with special lab space for drug discovery and innovation. The post 2005 years have witnessed Important acquisitions to strengthen our US business- the purchase of manufacturing assets for controlled substances in Cranbury, NJ, that of a site to make creams and lotions in Bryan, that of Alkaloid, a Hungary based API and dosage from manufacturer, and recently, Chattem Ltd, a Tennessee-based controlled substance API manufacturer.

The tally at the end of 2008 17 manufacturing plants in 3 continents 8000 employees World class research centers Brand selling in markets worldwide A growing presence in the US generic market Increasing research investments 60% of sales from international markets.

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RANBAXY LIMITED
Ranbaxy Laboratories Limited Type Public Founded 1961 Headquarters Gurgaon, Haryana, India Employees 1100 in R&D Website www.ranbaxy.com Ranbaxy Laboratories Limited is Indias largest pharmaceutical company. Incorporated in 1961.

Ranbaxy exports its products to 125 countries with ground operations in 46 and manufacturing facilities in seven countries. It is ranked among the top 10 generic companies worldwide. The CEO of the company is Malvinder Mohan Singh. Ranbaxy went public in 1973.

Ranbaxy was started by Ranjit Singh and Gurbax Singh in 1937 as a distributor for a Japanese company Shionog i. interestingly the name Ranbaxy is aportm anteau word from the names of its first owners Ranjit and Guabax. Bhai Mohan Singh. After Bhai Mohan Singhs son Parvinder Singh joined the company in 1967, the company saw a significant transformation in its business and scale. His sons Malvinder Mohan Singh and Shivinder Mohan Singh sold the company to the Japanese company Daichi in June 2008. In 1998, Ranbaxy entered the United State, the worlds largest pharmeceuticals market and now the biggest market for Ranbaxy, accounting for 28% of Ranbaxys sales in 2005. For the twelve months ending on 31 December 2005, the companys global sales were at US$1,178 million with overseas markets accounting for 75% of global sales (USA: 28%, Euroe: 17%, Brazil, Russia, and China: 29%). For the twelve months ending on December 31, 2006, the companys global sales were at US$1,300 million. Most of Ranbaxys products are manufactured by license from foreign pharmaceutical developers, though a significant percentage of their products are off-patent drugs that are manufactured and distributed without licensing from the original manufacturer because the patents on such drugs have expired. 31

In December 2005, Ranbaxys share were hit hard by a patent ruling disallowing production of its own version of Pfizers holes terol-cutting drugLipitor, which has annual sales of more than $10 billion. In June 2008, Ranbaxy settled the patent dispute with Pfizer allowing them to sell Atorvastatin Calcium, the generic version of Pfizers Caduet(R) in the US starting November 30, 2011. The settlement also resolved several other disputes in other countries.

On 23 June 2006, Ranbaxy received from the United States Food & Drug Administration a 180-day exclusivity period to sell simvastatin (Zocor) in the U.S. as a generic drug at 80 mg strength. Ranbaxy presently competes with the maker of brandname Zocor, Merck & Co.; IVAX Corporation ( which was acquired by and merged into Teva Pharmaceutical Industries LTD.), which has 180-days exclusivity at strengths other than 80 mg; and Dr. Reddys Laboratories, also from India, whose authorized generic version (licensed by Merck) is exempt from exclusivity.

On 16 September 2008, the Food and Drug Administration issued two Warning Letters to Ranbaxy Laboratories Ltd. And an Import Alert for generic drugs produced by two manufacturing pants in India. On 10 June 2008, Japans Daiichi Sankyo Co. agreed to take a majority (50.1%) stake in Ranbaxy, with a deal valued at about $4.6 billion. Ranbaxys Malvinder Singh will remain CEO after the transaction. Malvinder Singh also that this was a strategically deal and not a sell out. Daiichi-Sankyos Acquisition of Ranbaxy.

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DR. REDDYS LABORATORIES LTD

Dr. Reddy's Laboratories Ltd. is one of India's leading pharmaceutical companies with global ambitions. The company has departed from the Indian pharmaceutical market mainstream of copying patented drugs to pursue the development of its own-patentable--molecules. As such, the company has already achieved success with a number of promising anti-diabetic molecules. At the same time, Dr. Reddy's is pursuing a share of the lucrative, but highly competitive, U.S. generics market, including the higher-margin "branded generic" market. Dr. Reddy's operates through several strategic business units, including: Branded Finished Dosages; Generic Finished Dosages; Bulk Actives; Custom Chemicals; Biotechnology; Diagnostics; Critical Care; and Discovery Research. A leader in its domestic market, the company is also active on the international scene, which accounted for 64 percent of the company's total sales of Rs 18 billion ($392 million) in 2003. North America contributed 32 percent of sales, while Russia added 28 percent. The rest of the company's international revenues were generated through the Asian, African, and South American markets. Dr. Reddy's is led by founder and Chairman Dr. Anji Reddy and CEO (and Reddy's son-in-law) G.V. Prasad. Dr. Reddy's Laboratories was the first Asian pharmaceutical company, excluding Japan, to list on the New York Stock Exchange. Bulk Actives to Generics in the 1980s. In 1970, the Indian government, then led by Indira Ghandi, abrogated laws respecting international pharmaceutical patents. The move, meant to reduce the cost of providing healthcare to India's large and exceedingly poor population, had the effect of supercharging the country's pharmaceutical sector. With a long history in process chemistry, and a large and highly educated pool of scientists, the sector quickly became experts at reverseengineering, and then copying, the drugs developed by the world's large multinationals.

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The new industry quickly became one of the world's most energetic markets--by the 1990s, there were more than 20,000 companies operating in India's pharmaceuticals industry. Indian producers were able to produce drugs and their components for a fraction of the cost of their Western counterparts, and quickly found an enormous demand throughout the developing world. Yet the highly competitive domestic market, as well as the slender margins available from the copied--many would call them pirated--drugs forced the Indian companies to develop highly cost-effective manufacturing and marketing models. Dr. Anji Reddy, the son of a well-to-do turmeric farmer in Andra Pradesh in the south of India, was one of the early entrants into the new and fast-growing market. Reddy traveled to Bombay to pursue pharmacology studies, then went on to earn a Ph.D. in chemical engineering. Reddy then went to work for state-owned pharmaceutical company IDPL. At the time IDPL had been reliant on Russian technology; yet the company quickly turned the tables, gaining expertise--and eventually providing that to Russia itself. Reddy remained with IDPL into the early 1970s. The change of law and the rise of new opportunities in the pharmaceutical industry, however, encouraged him to set up his own business, and in the mid-1970s, Reddy founded a company for producing and selling bulk actives--the basic ingredients of drug compounds--to pharmaceutical manufacturers. Reddy's clientele soon featured a host of national and multinational companies, such as Burroughs Wellcome and others. In the early 1980s, however, Reddy sought to aim higher and establish himself as a manufacturer of finished products. In 1984, Reddy founded Dr. Reddy's Laboratories, using $40,000 of his own, backed by a bank loan for $120,000. Reddy jumped into the market of producing copies, taking advantage of the 1970 law. As he told Forbes: "We are products of that. But for that, we wouldn't be here. It was good for the people of India, and it was good for this company."

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Reddy's grew quickly, adding a large number of formulations, and achieving strong local success with its NISE range of painkillers. The company also had success with its copy of Bayer's antibiotic ciprofloxacin and, especially, with AstraZeneca's omeprazole, which, under the trade name Losec, had become the world's largestselling drug. That drug provided fortune for Dr. Reddy's as well, as Reddy told the Financial Times: "After Astra, I think I must be the largest producer in the world." Meanwhile, Reddy's took advantage of India's low wage and production costs to boost its production of bulk actives. By 1986, the company prepared to expand still further, and listed its stock on the Bombay exchange. In that year, also, the company began its first exports of bulk actives, including methyldopa. The company achieved another crucial milestone in 1987 when it gained U.S. FDA approval for its ibuprofen formulation. That approval, which was coupled with the allimportant FDA certification of its factory, marked the start of the company's international formulations exports.

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CIPLA LTD History

Khwaja Abdul Hamied, the founder of Cipla, was born on October 31, 1898. The fire of nationalism was kindled in him when he was 15 as he witnessed a wanton act of colonial highhandedness. The fire was to blaze within him right through his life. In college, he found Chemistry fascinating. He set sail for Europe in 1924 and got admission in Berlin University as a research student of "The Technology of Barium Compounds". He earned his doctorate three years later. In October 1927, during the long voyage from Europe to India, he drew up great plans for the future. He wrote: "No modern industry could have been possible without the help of such centres of research work where men are engaged in compelling nature to yield her secrets to the ruthless search of an investigating chemist." His plan found many supporters but no financiers. However, Dr Hamied was determined to being "a small wheel, no matter how small, than be a cog in a big wheel." On October 31, 1939, the books showed an alltime high loss of Rs 67,935. That was the last time the company ever recorded a deficit. In 1942, Dr Hamied's blueprint for a technical industrial research institute was accepted by the government and led to the birth of the Council of Scientific and Industrial Research (CSIR), which is today the apex research body in the country. In 1944, the company bought the premises at Bombay Central and decided to put up a 36

"first class modern pharmaceutical works and laboratory." It was also decided to acquire land and buildings at Vikhroli. With severe import restrictions hampering production, the company decided to commence manufacturing the basic chemicals required for pharmaceuticals. In 1946, Cipla's product for hypertension, Serpinoid , was exported to the American Roland Corporation, to the tune of Rs 8 lakhs. Five years later, the company entered into an agreement with a Swiss firm for manufacturing foromycene. Dr Yusuf Hamied, the founder's son, returned with a doctorate in chemistry from Cambridge and joined Cipla as an officer in charge of research and development in 1960. In 1961, the Vikhroli factory started manufacturing diosgenin. This heralded the manufacture of several steroids and hormones derived from diosgenin The founder passes away The whole of Cipla was plunged into gloom on June 23, 1972 when Dr K A Hamied passed away. The Free Press Journal mourned the death of a "true nationalist, scientist and great soul. The best homage we can pay to him is to contribute our best in the cause of self-reliance and the prosperity of our country in our fields of endeavour."

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LUPIN LABS
Lupin Chemicals Ltd (LCL) was promoted by Lupin Laboratories Ltd. The company was incorporated on 31.03.83 as a Private Ltd company and subsequently converted into a Public Ltd company with effect from 23.12.91. The company does not have any subsidary. The company is setting up a project for the manufacture of 93 tpa of Rifampicin, an essential anti-tuberculosis, anti-leprotic, life saving drug from a very basic stage of fermentation. It is an import substitute product. To finance the project the company is coming out with a PCD issue aggregating to Rs.45.6 crores. 2002-Lupin Ltd has successfully introduced AkuriT, a revolutionary simplified therapy as per WHO's guidelines for treatment of tuberculosis Crisil has upgraded the rating assigned to Lupin's non-convertible debentures from D to BB+. Lupin Ltd has enhanced its capacity of manufacturing various products at its formulations plants at Aurangabad and Manideep in Madhya Pradesh. 2007- Lupin receives Final FDA Approval for Trandolapril. Lupin Ltd inducted Pricewater House Coopers to implement SAP to faultlessly connect its 28 sales depot .Lupin Ltd has cut down its debt by Rs.20cr . 2003-Lupin Ltd has commissioned its facility at Mandideep near Bhopal, Madhya Pradesh for the manufacture of Lisinopril. -Lupin Ltd announces VRS for its

employees in a bid to trim its wag bill. Pharmaceutical major Lupin Ltd has divested about 12.55% of it equity holding in the company to CVC International, a private investment arm of the US based financial conglomerate Citigroup. Lupin is closing down its South African Operations and is setting up two subsidiaries in Hongkong and the US. Lupin Ltd has received the appproval of US Food and Drug Administration for cefuroxime axetil 250 mg and 500 mg tablets. Dr.Kamal K Sharma has been appointed as the Additional Director of the company.vials for injection. 38

Lupin receives USFDA approval for Caftriaxone Sterile Vials for injection-Lupin plans to list shares on NYSE Lupin set up new herbal product division Lupin submits INDA for psorias 2004 Launches Ezedoc, a specialty drug for the cholesterol management segment Lupin has appointed Vinod Dhawan as President - Business Development (Latin America, Japan, Australia, and New Zealand). Mr.Dhawan will be responsible for the development of Lupin's business strategy for these markets, with focus on, among others, product selection, entry strategy, marketing and sales, and regulatory compliance.

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STATESTICAL ANALYSIS
RATIO ANALYSIS
Ratio analysis is an accounting technique used to compare one figure with another figure. For example if the A business is twice as big as the B business we could represent the ratio of the sizes of the two business in the following way: A : B =2: 1 Ratios help us to instantly check whether a business is sound, and also to compare ratios over a period in time. Ratios can be used for the following purposes: 1. Examining trends in results over a number of years. 2. Comparing the results of a business with results of other businesses. 3. Comparing the results of the business with the average results of all businesses in that sector. In business we also use the term ratio to apply to other measures such as calculations e.g. profit margin.

Sources of data for financial ratios Values used in calculating financial ratios are taken from the balance sheet, income statement, statement of cash flows or (sometimes) the statement of retained earnings. These comprise the firms accounting statements or financial statements. The statements data is based on the accounting method and accounting standards used by the organization.

Purpose and types of ratios Financial ratios quantify many aspects of a business and are an integral part of the financial statement analysis. Financial ratios are categorized according to the financial aspect of the business which the ratio measures. Liquidity ratios measure the availability of cash to pay debt. Activity ratios measure how quickly a firm converts non-cash assets to cash assets. Debt ratios measure the firms ability to repay longterm debt. Profitability ratios measure the firms use of its assets and control of its expenses to generate an acceptable rate of return. Market ratios measure investor response to owning a companys stock and also the cost of issuing stock

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Financial ratios allow for comparisons between companies between industries between different time periods for one company between a single company and its industry average Ratios generally hold no meaning unless they are benchmarked against something else, like past performance or another company. Thus, the ratios of firms in different industries, which face different risks, capital requirements, and competition are usually hard to compare. Accounting methods and principles Financial ratios may not be directly comparable between companies that use different accounting methods or follow various standard accounting practices. Most public companies are required by law to use generally accepted accounting principles for their home countries, but private companies, partnerships and sole proprietorships may not use accrual basis accounting. Large multi-national corporations may use International Financial Reporting Standards to produce their financial statements, or they may use the generally accepted accounting principles of their home country. There is no international standard for calculating the summary data presented in all financial statements, and the terminology is not always consistent between companies, industries, countries and time periods. Abbreviations and terminology Various abbreviations may be used in financial statements, especially financial statements summarized on the Internet. Sales reported by a firm are usually net sales, which deduct returns, allowances, and early payment discounts from the charge on an invoice. Net income is always the amount after taxes, depreciation, amortization, and interest, unless otherwise stated. Otherwise, the amount would be EBIT, or EBITDA (see below). Companies that are primarily involved in providing services with labour do not generally report Sales based on hours. These companies tend to report revenue 41

based on the monetary value of income that the services provide. Note that Shareholders Equity and Owners Equity are not the same thing, Shareholders Equity represents the total number of shares in the company multiplied by each shar&s book value; Owners Equity represents the total number of shares that an individual shareholder owns (usually the owner with controlling interest), multiplied by each shares book value. It is important to make this distinction when calculating ratios.

CURRENT RATIO
The current ratio is a financial ratio that measures whether or not a firm has enough resources to pay its debts over the next 12 months. It compares a firms current assets to its current liabilities. It is expressed as follows:

Current ratio

The current ratio is an indication of a firms market lkiuidity and ability to meet creditors demands. Acceptable current ratios vary from industry to industry. If a companys current ratio is in this range, then it is generally considered to have good short-term financial strength. If current liabilities exceed current assets (the current ratio is below 1), then the company may have problems meeting its short-term obligations. If the current ratio is too high, then the company may not be efficiently using its current assets or its short-term financing facilities. This may also indicate problems in working capital management.

NET PROFIT RATIO

The net profit ratio is net profit expressed as a percentage of total sales. Net profit is taken before tax and other indirect costs. Essentially the net profit ratio tells us about how the companys profits relate to their sales. Different industries have fundamentally different net profit ratios. The net profit ratio can tell us about the nature of the industry the company is operating in as well as

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serving to compare past performances of a company. The Net Profit Ratio Formula The formula for the net profit ratio is as follows: Net Profit Ratio (%) = (Net Profit before Tax / Total Revenues) x 100

EARNINGS PER SHARE (EPS)

EPS

The most widely used ratio, it tells how much profit was generated on a per share basis. EPS Analysis: The earnings per share ratio is mainly useful for companies with publicly traded shares. Most companies will quote the earnings per share in their financial statements saving you from having to calculate it yourself. By itself, EPS doesnt really tell you a whole lot. But if you compare it to the EPS from a previous quarter or year it indicates the rate of growth a companies earnings are growing (on a per share basis). Corys Tequila Co.s EPS have increased almost 50% since last year, an excellent growth rate. It should be noted that the 65 cents EPS is the trailing number, using the previous 4 quarters of earnings. Some analysts like to use projected EPS to analyze a stocks current value in respect to these estimates.

DIVIDENDS PER SHARE (DPS)

The DPS ratio is very similar to the EPS: EPS shows what shareholders earned by way of profit for a period whereas DPS shows how much the shareholders were actually paid by way of dividends. The DPS formula is:

Dividends per share 43

DEBT-EQUITY RATIO

Debt-equity ratio

Indicates what proportion of equity and debt that the company is using to finance its assets. Sometimes investors only use long term debt instead of total liabilities for a more stringent test. The Debt/Equity ratio is certainly far from perfect. A low ratio of 0.26 means that the company is exposing itself to a large amount of equity. This is certainly better than a high ratio of 2 or more since this would expose the company to risk such as interest rate increases and creditor nervousness. One way to improve their situation would be to issue more debt and use the cash to buyback some of its outstanding shares. The problem with issuing more and more stock like Corys Tequila Co. has done means that outstanding shares become diluted and existing investors receive a smaller ownership portion with each additional share issued.

RETURN ON SHAREHOLDERS FUNDS

Return on shareholdersfunds

*100

It indicates whether the return on proprietors funds is enough in relation to the risks that they undertake. This ratio shows what amount of dividend is likely to be received on shares.In order to judge the efficiency with which the proprietors funds are employed in business, this ratio is ascertained.Proprietors Equity or ProprietorsFunds include share capital and reserves.

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Beta ()
Beta (), in finance, of a stock or portfolio is a number describing the relation of its returns with those of the financial market as a whole. B or Beta describes the relationship between the stock's return and the Market index return. This can be positive and negative. It is the percentage change in the price of the stock regressed (or related) to the percentage changes in the market Index. It is a measurement of systematic risk measurement.

FORMULA

= Percentage (%) change in script return Percentage (%) change in market return =N dx.dy - dx.dy dx-(Ndx)
Here, the appreciation of script price is related with the market price change. Thus = as above equation for calculation of Beta security is taken as depended variable while, market return or changes is taken a independent variable. If B=1 then script risk is same as market risk so, we can say that there is no, fluctuation in company risk. If B>1 script risk is more than market risk While B<1 script risk is less than market risk.

An asset has a Beta of zero if its returns change independently of changes in the market's returns. A positive beta means that the asset's returns generally follow the market's returns, in the sense that they both tend to be above their respective averages together, or both tend to be below their respective averages together. A negative beta means that the asset's returns generally move opposite the market's returns: one will tend to be above its average when the other is below its average. The beta coefficient is a key parameter in the capital asset pricing model 45

(CAPM). It measures the part of the asset's statistical variance that cannot be removed by the diversification provided by the portfolio of many risky assets, because of the correlation of its returns with the returns of the other assets that are in the portfolio. Beta can be estimated for individual companies using regression analysis against a stock market index.

(2) Alpha ()
Alpha is a risk-adjusted measure of the so-called active return on an investment. It is the return in excess of the compensation for the risk borne, and thus commonly used to assess active managers' performances. Often, the return of a benchmark is subtracted in order to consider relative performance, which yields Jensen's alpha.

= y- x
The alpha coefficient (alpha_i) is a parameter in the capital asset pricing model (CAPM). It is the intercept of the security characteristic line (SCL), that is, the coefficient of the constant in a market model regression. It can be shown that in an efficient market, the expected value of the alpha coefficient is zero. Therefore the alpha coefficient indicates how an investment has performed after accounting for the risk it involved: alpha_i < 0: the investment has earned too little for its risk (or, was too risky for the return) alpha_i = 0: the investment has earned a return adequate for the risk taken alpha_i > 0: the investment has a return in excess of the reward for the assumed risk For instance, although a return of 20% may appear good, the investment can still have a negative alpha if it's involved in an excessively risky position.

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RESEARCH METHODOLOGY
RESEARCH
Research always starts with problem, its purpose to find the answer of the question with application of scientific method, it is systematic and intensive study directed towards more complex knowledge of the subject studied.

RESEARCH METHODOLOGY
The system of collecting data for research projects is known as methodology. The data may be collected for either theoretical or practical research for example management research may be strategically conceptualized along with operational planning methods and change management.

METHOD OF ANALYSIS
Here method of doing technical analysis of the various scripts is given below: a) RATIO ANALYSIS b) COMPARISION OF RATIO ANALYSIS c) CO-RELATION d) ALFA e) BETA

RESEARCH OBJECTIVES

Main Objective
Fundamental Analysis On Pharmaceticals Sector

Sub Objective
To know current scenario of Pharmaceutical industry by doing fundamental analysis. To study investors requirements based on EPS from the company. To get idea of financial strength in Pharmaceutical sector.

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RESEARCH DESIGN: The research design is the method and process for the conducting particular study. Broadly speaking, it is can be grouped in the three main category-exploratory, descriptive, causal.

RESEARCH DESIGN

EXPLORATORY

DISCRIPTIVE

CAUSAL

EXPLORATORY An exploratory research is the discovery on new idea and generally based on the secondary data

DISCRIPTIVE Descriptive study is use when researcher interested in knowing the features of certain group like sex, age, educational level. Occupation etc.

CAUSAL As the name implies a causal design investigates the cause and effect relationship 48

between two or more variable This reported is based on exploratory research design because it covera secondary data.

SOURCES OF DATA:-

In the research report it is very important to determine the research had collected primary data or secondary data. Sometimes, the research study is based on both data .

The source of data can be divided in the two categories 1. Primary data:The primary data are those data which are collected by the any researcher first time and before it no one have collected those data is known as the primary data Personal consultation with broker as well as mentor Judgments

2. Secondary data:The secondary data are those which are already collected and used for some other context. This report contains only SECONDARY DATA as to use the secondary data for the fundamental analysis on Pharmaceuticals sector . Internet Library

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SAMPLING DESIGN In sampling design sampling means the selection of some part of an aggregate or totally on the basis of which a judgment about the totality is made. In other words, it is a process of obtaining information about an entire population. There are mainly two types of sampling method (1) Probability (2) Non- probability

(1) Probability It is based on chance. Human judgment is not involved. It is a random sampling. No substitution is permissible. (2) Non- Probability It is based on chance. Probability is not known. Human judgment is involved in selection of sampling unit. It is a non-random sampling method. Substitution of units is permissible.

SAMPLING DESIGN In this project Non- Probability convenience sampling method is used.

SAMPLING SIZE Here, in this project report there is used 5 sample size because there are taken 5 types of Pharmaceuticals Company like, Sun Pharma, Ranbaxy Laboratories Limited, Dr. Reddys Laboratories Limited, Cipla Limited, and Lupin Labs.

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BENEFITS OF STUDY There are some benefits of this particular project of fundamental analysis on pharmaceutical sector. The accurate data is taken in this project of the fundamental analysis on pharmaceutical sector. Because of the simple and easy language is used in this project, can easily get idea of particular topic of this project. It gives a clear picture of the companies, which are taken in this project. It can give the perfect idea of the companies taken in this project for the fundamental analysis through which investor can get the clear idea for investment. It is very easy to understand that which company is better than other companies taken in this project from the different chart shown in this project.

LIMITATIONS

There are some limitation of this particular project of fundamental analysis on pharmaceutical sector.

The project is still lacking with minor thing, because of the time limitation. As the data available to me has been taken from the secondary sources (like Internet). It is not sure that collected data are accurate and complete. The data which are very useful for the fundamental analysis arelacking in this project or contract that are still in negotiation or any kind of deal which is in process. Here that is ignored.

Due to lack of experience and knowledge of the pharmaceutical industry it cant be said that is ignored. Todays stock market is totally running on the investors perception so the conclusion derived on the basis if fundamental analysis would not viable in long run.

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DATA ANALYSIS CO-RELATION (r) , ALPHA , BETA

(1) SUN PHARMA COMPANY (YEAR 2007)

SHARE Month Jan-07 Feb-07 Mar-07 Apr-07 SENSEX 14,090.92 12,938.09 13,072.10 13,872.37 PRICE 1027.75 927.55 1054 1026.95 1108.3 1022.1 930.5 931.05 965.5 1054.2 1102.5 1222.05 -8.18 1.03 6.12 4.84 0.72 6.14 -1.49 12.87 14.72 -2.39 4.77 -9.74 13.63 -2.56 7.92 -7.77 -8.96 0.06 3.70 9.18 4.58 10.84 66.93 1.07 37.47 23.47 0.53 37.77 2.23 165.80 216.95 5.72 22.76 580.75 95.05 185.85 6.58 62.75 60.49 80.31 0.003 13.69 84.40 20.99 117.58 727.72 79.76 14.12 -15.71 38.37 -5.67 -55.08 -0.08 47.64 135.31 -10.96 51.73 279.44 X Y x2 y2 x*y

May-07 14,544.46 Jun-07 Jul-07 Aug-07 Sep-07 Oct-07 Nov-07 Dec-07 14,650.51 15,550.99 15,318.60 17,291.10 19,837.99 19,363.19 20,286.99

39.186 20.870

X = % return of exchange rate Y = % return of prices X = x N = 39.186 11 = 3.265

N=11

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Y= y N = 20.870 11 = 1.739 x= 39.186 x2=580.75 x*y=279.44 y=20.870 y2=727.72

11 (279.44) (39.19) (20.87) 11 (580.75) (39.18)2 11 (727.72) (20.87)2

2255.9447 6060.9787

= =

0.37 nxy - x y nx - (x) = 11 (279.44) (39.19) (20.87) 11 (580.75) (39.18)2 = 2256.0173 4852.74

= 0.46 =y- x =1.72-0.46*3.27 = 0.22 53

SUN PHARMA COMPANY (YEAR 2008)

SHARE MONTH Jan-08 Feb-08 Mar-08 Apr-08 May-08 Jun-08 Jul-08 Aug-08 Sep-08 Oct-08 Nov-08 Dec-08 SENSEX 17,648.71 17,578.72 15,644.44 17,287.31 16,415.57 13,461.60 14,355.75 14,564.53 12,860.43 9,788.06 9,092.72 9,647.31 PRICE 1138.45 1225.9 1231.4 1449.2 1402.9 1392.55 1410.1 1475.75 1467.9 1122.9 1080.2 1064.95 -0.397 -11.004 10.501 -5.043 -17.995 6.642 1.454 -11.700 -23.890 -7.104 6.099 -52.435 7.681497 0.44865 17.68719 -3.19487 -0.73776 1.260278 4.655698 -0.53193 -23.503 -3.80265 -1.41178 -1.44864 0.157 121.078 110.277 25.428 323.817 44.119 2.115 136.898 570.737 50.466 37.201 1422.295 59.00539 0.201287 312.8365 10.20717 0.544286 1.5883 21.67553 0.282953 552.3893 14.46018 1.99311 975.184 -3.04627 -4.93673 185.7385 16.11062 13.27589 8.371052 6.770922 6.223798 561.4882 27.01391 -8.61081 808.399 X Y x2 y2 x*y

X = % return of exchange rate Y = % return of prices X = x N = -52.435 11 = -4.77 Y= y N = -1.44864 11 = -0.13

N=11

54

x= -52.435 x2= 1422.295 x*y= 808.399

y= -1.44864 y2= 975.184

11 (808.399) (-52.43) (-1.45) 11 (1422.29) (-52.43)2 11 (975.18) (-1.45)2

= =

0.75 nxy - x y nx - (x) 11 (808.399) (-52.43) (-1.45) 11 (1422.29) (-52.43)2

8816.43066 12895.816

0.68

= y- x

= -0.13-0.68*-4.77

= 3.11

55

SUN PHARMA COMPANY (YEAR 2009)

SHARE MONTH SENSEX Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 9,424.24 8,891.61 9,708.50 PRICE 1073.45 1014.45 1112.35 -5.652 9.187 -5.4963 9.65055 31.942 84.405 30.20928 31.06343 93.13311 88.66153 214.4664 255.6425 26.42133 -145.236 96.36335 8.820253 55.12649 60.26672 2.358994 -0.03597 309.5198 163.9762 1.590991 9.062738 29.70256 35.31127 11.84821 10.95279 X y x2 y2
x*y

11,403.25 1275.25 14,625.25 1209.7 14,493.84 1090.95 15,670.31 1171.95 15,666.64 1189.95 17,126.84 1399.3 15,896.28 1381.65 16,926.22 1456.95 17,464.81 1507.1

17.456 14.64467 304.724 28.255 -5.14017 -0.899 8.117 -0.023 9.320 -7.185 6.479 3.182 -9.81648 798.351 0.807

7.424722 65.886 1.535902 0.001 17.59318 86.871 -1.26134 51.624

5.450005 41.979 3.442122 10.125

68.239 38.02685 1476.714 870.7406 518.485

X = % return of exchange rate Y = % return of prices X = x N = 68.239 11 = 6.20 Y= y N = 38.02685 11 = 3.47

N=11

56

x= 68.239

y= 38.02685

x2= 1476.714 y2= 870.7406 x*y= 518.485

11 (518.485) (68.24) (38.03) 11 (1476.71) (68.24)2 11 (38.027) (38.03)2

= =

0.32 nxy - x y nx - (x)

= 11 (518.485) (68.24) (38.03) 11 (1476.71) (68.24)2 = 3108.4263 1587.2929 = 0.27

=y- x

=3.47-0.27*6.20

=-1.80

57

SUN PHARMA COMPANY (YEAR 2010)

SHARE MONTH SENSEX Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 16,357.96 16,429.55 17,527.77 17,558.71 16,944.63 17,700.90 17,868.29 17,971.12 20,069.12 20,032.34 19,521.25 20,509.09 PRICE 1469.45 1540.9 1789.6 1566.8 1660.9 1784.1 1770.7 1760.1 2018.95 2107.3 448.75 484.65 0.438 6.684 0.177 -3.497 4.463 0.946 0.575 11.674 -0.183 -2.551 5.060 23.786 4.862363 16.13992 -12.4497 6.005872 7.417665 -0.75108 -0.59863 14.70655 4.376037 -78.705 8 -30.996 0.192 44.681 0.031 12.231 19.920 0.894 0.331 23.64258 2.127995 260.497 107.886 X Y x2 y2 x*y

154.9953 -2.19762 36.0705 -21.0043

55.02176 33.1064 0.56412 -0.71026

0.358362 -0.34451

136.289 216.2826 171.6885 0.034 6.509 25.607 19.1497 -0.80198

6194.474 200.8019 64 40.48265

246.719 7025.055 531.035

X = % return of exchange rate Y = % return of prices X = x N = 23.786 11 = 2.16 Y= y N = -30.996 11 = -2.82

N=11

58

x= 23.786 x2= 246.719

y= -30.996 y2= 7025.055

x*y= 531.035

11 (531.035) (23.79) (-30.996) 11 (246.72) (23.79)2 11 (7025.055) (-30.996)2

= 0.51 = nxy - x y nx - (x) = 11 (531.035) (23.79) (-30.996) 11 (246.72) (23.79)2 = 6578.65 2148.14 = 3.06

=y- x

=-2.82-3.06*2.16

=-9.43

59

SUN PHARMA COMPANY (YEAR 2011) SHARE MONTH Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 SENSEX 18,327.76 17,823.40 19,445.22 19,135.96 18,503.28 18,845.87 18,197.20 16,676.75 16,453.76 17,705.01 16,123.46 15,454.92 PRICE 440.6 423.6 441.8 465.1 477 496.8 516.8 490.3 461.7 503.3 523.4 496.85 -2.752 9.099 -1.590 -3.306 1.852 -3.442 -8.355 -1.337 7.605 -8.933 -4.146 -3.85837 4.296506 5.27388 2.55859 4.150943 4.025765 -5.12771 -5.83316 9.01018 3.993642 -5.0726 7.573 82.799 2.529 10.931 3.428 11.847 69.813 1.788 57.831 79.795 17.192 14.88706 10.61783 18.45996 39.09557 27.81381 -8.38767 6.54638 -8.4593 X Y x2 y2 x*y

17.23033 7.685511 16.20678 -13.8566 26.2934 42.84409

34.02579 7.799704 81.18334 68.51922 15.94918 -35.6743 25.73129 21.03294

-15.307 13.41766

345.526 284.3273 131.217

X = % return of exchange rate Y = % return of prices X = x N = -15.307 11 = -1.39 Y= y N = 13.41766 11 = 1.22

N=11

60

x= -15.307 x2= 345.526

y= 13.41766 y2= 284.3273

x*y= 131.217

11 (131.217) (-15.31) (13.42) 11 (345.526) (-15.31)2 11 (284.33) (13.42)2

= =

0.51 nxy - x y nx - (x)

= 11 (131.217) (-15.31) (13.42) 11 (345.526) (-15.31)2

= 1648.77 3566.48

0.46

=y- x

=1.22-0.46*-1.39

=1.86

61

SUN PHARMA COMPANY

Year 2007 2008 2009 2010 2011

Alpha -0.22 -3.11 1.80 9.43 -1.86

Beta 0.46 0.68 0.27 3.06 0.46

Correlation 0.37 0.75 0.32 0.51 0.51

12 10 8 6 4 2 0 -2 -4 2007 -0.22 2008 -3.11 2009 2010 2011 -1.86 1.8 0.75 0.32 0.46 0.68 0.27 0.37 3.06 0.51 0.46 0.51 Alpha Beta correlation 9.43

interpretation In this calculation >1 means higer the risk and higer the return. And in <1 means that lower the risk and lower the return. Same in correlation is positive means its a profitable for the company. Here above calculation in year 2007,2008,2009 beta is 0.47,0.67,0.28 respectively and in same year alpha is 1.74,2.81,1.58 respectively. But in 2010 beta is increase with 2.97 and again decrease in year 2011 with the 0.46 so beta is <1 and in 2010 alpha decrease with the -8.45 and again increase in 2011 with the 1.7 so alpha is >0. so its shows that it is a positive relationship between sensex index and script value which give low return and low risk. But in this correlation is a positive relationship between two variables. 62

RANBAXY LABORATORIES LIMITED (YEAR 2006)

SHARE MONTH SENSEX Jan-06 Feb-06 Mar-06 Apr-06 May-06 Jun-06 Jul-06 Aug-06 Sep-06 Oct-06 Nov-06 Dec-06 14,090.92 12,938.09 13,072.10 13,872.37 14,544.46 14,650.51 15,550.99 15,318.60 17,291.10 19,837.99 19,363.19 20,286.99 PRICE 408.6 337.6 352.6 371.35 387.7 354.95 389.9 391.3 434.4 427.05 387.15 425.95 -0.397 26.922 0.157 121.078 110.277 25.428 323.817 44.119 2.115 724.793 2.466 88.607 102.494 1.122 20.966 15.109 -10.677 17.280 98.850 -51.052 19.062 -30.414 5.653 X y x2 y2 x*y

-11.004 -1.570 10.501 -5.043 9.413 10.124

-17.995 -1.059 6.642 1.454 -4.579 3.887

-11.700 -52.218 136.898 -23.890 -31.604 570.737 -7.104 6.099 23.222 20.881 50.466 37.201

2726.713 610.968 998.841 539.270 436.026 755.033 -164.970 127.360

-52.435 3.418

1422.295 5656.407 1377.094

X = % return of exchange rate Y = % return of prices X = x N = -52.435 11 = -4.77 Y= y N = 3.418 11 = 0.31

N=11

63

x= -52.435 x2= 1422.295

y= 3.418 y2= 5656.407

x*y= 1377.094

11 (1377.094) (-52.435) (3.418) 11 (1422.295) (-52.43)2 11 (5656.407) (3.418)2

= =

0.67 nxy - x y nx - (x) 11 (1377.094) (-52.435) (3.418) 11 (1422.295) (-52.435)2

= 4522.2087 4852.741

0.93

=y- x

=0.31-0.93*-4.77

=4.75 64

RANBAXY LABORATORIES LIMITED(YEAR 2007)

SHARE MONTH SENSEX Jan-07 Feb-07 Mar-07 Apr-07 May-07 Jun-07 Jul-07 Aug-07 Sep-07 Oct-07 Nov-07 Dec-07 17,648.71 17,578.72 15,644.44 17,287.31 16,415.57 13,461.60 14,355.75 14,564.53 12,860.43 9,788.06 9,092.72 9,647.31 PRICE 351.2 445.75 438.75 480.05 528.65 523.05 499.1 518.5 247.75 169.45 208.8 252.4 -0.397 26.922 0.157 121.078 110.277 25.428 323.817 44.119 2.115 724.793 2.466 88.607 102.494 1.122 20.966 15.109 -10.677 17.280 98.850 -51.052 19.062 -30.414 5.653 x Y x2 y2 x*y

-11.004 -1.570 10.501 -5.043 9.413 10.124

-17.995 -1.059 6.642 1.454 -4.579 3.887

-11.700 -52.218 136.898 -23.890 -31.604 570.737 -7.104 6.099 23.222 20.881 50.466 37.201

2726.713 610.968 998.841 539.270 436.026 755.033 -164.970 127.360

-52.435 3.418

1422.295 5656.407 1377.094

X = % return of exchange rate Y = % return of prices X = x N = -52.435 11 = -4.77 Y= y N = 3.418 11 = 0.31

N=11

65

x= -52.435 x2= 1422.295

y= 3.418 y2= 5656.407

x*y= 1377.094

11 (1377.094) (-52.43) (3.418) 11 (1422.29) (-52.43)2 11 (5656.407) (3.418)2

= =

0.54 nxy - x y nx - (x) 11 (1377.094) (-52.43) (3.418) 11 (1422.29) (-52.43)2

= 15327.25683 12895.8158

1.19

=y- x

=0.31-1.19*-4.77

=5.99

66

RANBAXY LABORATORIES COMPANY (YEAR 2008) SHARE MONTH SENSEX Jan-08 Feb-08 Mar-08 Apr-08 May-08 Jun-08 Jul-08 Aug-08 Sep-08 Oct-08 Nov-08 Dec-08 9,424.24 8,891.61 9,708.50 PRICE 215.7 161.8 165.6 -5.652 9.187 -24.988 2.349 31.942 84.405 304.724 798.351 0.807 65.886 0.001 86.871 51.624 41.979 10.125 624.421 5.516 0.045 141.227 21.577 3.689 X Y x2 y2 x*y

11,403.25 165.95 14,625.25 278.8 14,493.84 245.05 15,670.31 280.1 15,666.64 327.6 17,126.84 403.05 15,896.28 390.5 16,926.22 455.45 17,464.81 517.45

17.456 0.211 28.255 68.002 -0.899 8.117 -0.023 9.320 -7.185 6.479 3.182 -12.105 14.303 16.958 23.031 -3.114 16.633 13.613

4624.328 1921.415 146.542 204.582 287.582 530.433 9.695 276.641 185.311 10.877 116.100 -0.397 214.660 22.372 107.764 43.316

68.239 114.893 1476.714 6895.095 2602.601

X = % return of exchange rate Y = % return of prices X = x N = 68.239 11 = 6.20 Y= y N = 114.893 11 = 10.44

N=11

67

x= 68.239

y= 114.893

sx2= 1476.714 y2= 6895.095 x*y= 2602.601

11 (2602.601) (68.24) (114.893) 11 (1476.71) (68.24)2 11 (6895.095) (114.893)2

= 0.77 = nxy - x y nx - (x) 11 (2602.601) (68.24) (114.893) 11 (1476.714) (114.893)2

= 20788.4276 11587.2929

= 1.79 =y- x

=10.44-1.79*6.20

= -0.66 68

RANBAXY LABORATORIES LIMITED (YEAR 2009)

SHARE MONTH SENSEX Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 PRICE x Y x2 y2 x*y

16,357.96 453.15 16,429.55 467.05 17,527.77 474.9 17,558.71 443.1 16,944.63 429.85 17,700.90 460.6 17,868.29 449.3 17,971.12 490.25 20,069.12 557.15 20,032.34 579.75 19,521.25 571.45 20,509.09 598.65 0.438 6.684 0.177 -3.497 4.463 0.946 0.575 3.067 1.681 -6.696 -2.990 7.154 -2.453 9.114 0.192 44.681 0.031 12.231 19.920 0.894 0.331 9.409 2.825 44.838 8.942 51.175 6.019 83.068 1.342 11.235 -1.182 10.458 31.928 -2.320 5.245

11.674 13.646 136.289 186.216 159.308 -0.183 -2.551 5.060 4.056 -1.432 4.760 0.034 6.509 25.607 16.454 2.050 22.656 -0.743 3.653 24.086

23.786 29.907 246.719 433.652 243.010

X = % return of exchange rate Y = % return of prices X = x N = 23.786 11 = 2.16 Y= y N = 29.907 11 = 2.72

N=11

69

x= 23.786 x2= 246.719

y= 29.907 y2= 433.652

x*y= 243.010

11 (243.010) (23.786) (29.907) 11 (246.719) (23.786)2 11 (433.652) (29.907)2

= 0.68 = nxy - x y nx - (x) 11 (243.010) (23.786) (29.907) 11 (246.719) (23.786)2

= 1961.7476 2148.1352

= 0.91 =y- x

=2.72-0.91*2.16

=0.75

70

RANBAXY LABORATORIES LIMITED (YEAR 2010)

SHARE MONTH SENSEX Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 18,327.76 17,823.40 19,445.22 19,135.96 18,503.28 18,845.87 18,197.20 16,676.75 16,453.76 17,705.01 16,123.46 15,454.92 PRICE 545.4 433.85 444.05 456.2 548.9 540.35 539 473.15 513.9 501.1 434.8 405.25 -2.752 9.099 -1.590 -3.306 1.852 -3.442 -8.355 -1.337 7.605 -8.933 -4.146 -20.453 7.573 2.351 2.736 20.320 -1.558 -0.250 82.799 2.529 10.931 3.428 11.847 418.320 5.527 7.487 412.904 2.426 0.062 149.257 74.175 6.204 175.057 46.189 56.284 21.393 -4.352 -67.183 -2.884 0.860 102.079 -11.516 -18.941 118.189 28.180 x Y x2 y2 x*y

-12.217 69.813 8.612 -2.491 1.788 57.831

-13.231 79.795 -6.796 17.192

-15.307 -22.976 345.526 1297.608 222.108

X = % return of exchange rate Y = % return of prices X = x N = -15.307 11 = -1.39 Y= y N = -22.976 11 = -2.088

N=11

71

x= -15.307 x2= 345.526 x*y= 222.108

y= -22.976 y2= 1297.608

11 (222.108) (-15.307) (-22.976) 11 (345.526) (-15.307)2 11 (1297.608) (-22.976)2

= 0.30 = nxy - x y nx - (x) 11 (222.108) (-15.307) (-22.976) 11 (345.526) (-15.307)2

= 2091.49657 3566.4818

= 0.58 =y- x

=-2.088-0.58*-1.39

= -1.28 72

RANBAXY LABORATORIES LIMITED

Year 2006 2007 2008 2009 2010

Alpha -4.75 -5.99 0.66 -0.75 1.28

Beta 0.93 1.19 1.79 0.91 0.58

Correlation 0.67 0.54 0.77 0.68 0.3

4 2 0 -2 -4 -6 -8 2006 2007 2008 2009 2010 Alpha Beta Correlation

interpretation In this calculation >1 means higer the risk and higer the return. And in <1 means that lower the risk and lower the return. Same in correlation is positive means its a profitable for the company. Here above calculation in year 2006,2007,2008 beta is 0.91,1.18,1.79 respectively and in same year alpha is -2.26,5.4,-0.6 respectively. But in 2009 beta is decrease with 0.9 and again decrease in year 2010 with the 0.59 so beta is <1 and in 2009 alpha increase with the 0.67 and again decrease in 2010 with the -1.16 so alpha is <0. so its shows that it is a negative relationship between sensex index and script value which give law return and lower risk. And correlation is also positive so it good for the company. 73

DR. REDDY'S LABORATORIES LIMITED (YEAR 2007)

SHARE MONTH SENSEX Jan-07 Feb-07 Mar-07 Apr-07 sMay-07 Jun-07 Jul-07 Aug-07 Sep-07 Oct-07 Nov-07 Dec-07 14090.92 12938.09 13072.1 13872.37 14544.46 14650.51 15550.99 15318.6 17291.1 19837.99 19363.19 20286.99 PRICE 742.8 677.2 727.5 709.6 649.45 655.95 633.55 640.8 649 620.95 632.15 735.35 -8.181 1.036 6.122 4.845 0.729 6.146 -1.494 12.877 14.729 -2.393 4.771 39.186 -8.831 7.428 -2.460 -8.477 1.001 -3.415 1.144 1.280 -4.322 1.804 16.325 1.476 66.935 1.073 37.479 23.472 0.532 37.778 2.233 77.994 55.170 6.054 71.853 1.002 11.662 1.310 72.253 7.693 -15.063 -41.068 0.730 -20.989 -1.710 16.477 -63.661 -4.317 x Y x2 y2 x*y

165.804 1.638 216.958 18.680 5.728 22.762 3.253

266.513 77.886

580.753 515.128 28.232

X = % return of exchange rate Y = % return of prices X = x N = 39.186 11 = 3.56 Y= y N = 1.476 11 = 0.13

N=11

74

x= 39.186 x2= 580.753 x*y= 28.232

y= 1.476 y2= 515.128

11 (28.232) (39.186) (1.476) 11 (580.753) (39.186)2 11 (515.128) (1.476)2

= 0.048 = nxy - x y nx - (x) 11 (28.232) (39.186) (1.476) 11 (580.753) (39.186)2

= 252.71247 4852.7406

= 0.052 =y- x

=0.13-0.052*3.56

=-0.055 75

DR. REDDY'S LABORATORIES LIMITED (YEAR 2008)

SHARE MONTH Jan-08 Feb-08 Mar-08 Apr-08 May-08 Jun-08 Jul-08 Aug-08 Sep-08 Oct-08 Nov-08 Dec-08 SENSEX 17648.710 17578.720 15644.440 17287.310 16415.570 13461.600 14355.750 14564.530 12860.430 9788.060 9092.720 9647.310 PRICE 528.2 582.65 590.95 622.45 714.6 670.55 569.2 579.25 508.95 428.25 428.15 469.75 -0.397 -11.004 10.501 -5.043 -17.995 6.642 1.454 -11.700 -23.890 -7.104 6.099 -52.435 10.309 1.425 5.330 14.804 -6.164 -15.114 1.766 -12.136 -15.856 -0.023 9.716 -5.945 0.157 121.078 110.277 25.428 323.817 44.119 2.115 136.898 570.737 50.466 37.201 1422.295 106.267 2.029 28.413 219.170 37.998 228.447 3.117 147.292 251.418 0.001 94.405 1118.558 -4.088 -15.675 55.976 -74.654 110.926 -100.394 2.568 142.000 378.806 0.166 59.262 554.893 x y x2 y2 x*y

X = % return of exchange rate Y = % return of prices X = x N = -52.435 11 = -4.77 Y= y N = -5.945 11 = -0.54

N=11

76

x= -52.435 x2= 1422.295 x*y= 554.893

y= -5.945 y2= 1118.558

11 (554.893) (-52.43) (-5.945) 11 (1422.29) (-52.43)2 11 (1118.558) (-5.945)2

= 0.46

nxy - x y nx - (x) 11 (554.893) (-52.435) (-5.945) 11 (1422.295) (-52.435)2

= 5792.0969 12895.81

= 0.45 =y- x

=-0.54-0.45*-4.77

=1.61

77

DR. REDDY'S LABORATORIES LIMITED (YEAR 2009)

SHARE MONTH SENSEX Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 9424.240 8891.610 9708.500 11403.250 14625.250 14493.840 15670.310 15666.640 17126.840 15896.280 16926.220 17464.810 PRICE 451.15 391.3 488.65 544.35 644.85 777.85 817.55 794.65 988.1 1009.15 1129.45 1143.8 -5.652 9.187 17.456 28.255 -0.899 8.117 -0.023 9.320 -7.185 6.479 3.182 68.239 -13.266 24.879 11.399 18.462 20.625 5.104 -2.801 24.344 2.130 11.921 1.271 31.942 84.405 304.724 798.351 0.807 65.886 0.001 86.871 51.624 41.979 10.125 175.989 618.945 129.932 340.860 425.389 26.049 7.846 592.633 4.538 142.108 1.614 74.976 228.565 198.981 521.657 -18.532 41.428 0.066 226.897 -15.307 77.237 4.043 x Y x2 y2 x*y

104.067 1476.714 2465.903 1340.010

X = % return of exchange rate Y = % return of prices X = x N = 68.239 11 = 6.20 Y= y N = 104.067 11 = 9.46

N=11

78

x= 68.239

y= 104.067

x2= 1476.714 y2= 2465.903 x*y= 1340.010

11 (1340.010) (68.239) (104.067) 11 (1476.714) (68.239)2 11 (2465.903) (104.067)2

= 0.56 = nxy - x y nx - (x) 11 (1340.010) (68.239) (104.067) 11 (1476.714) (68.239)2

= 7638.682 11587.2929

= 0.64 =y- x

=9.46-0.64*6.20

=5.49 79

DR. REDDY'S LABORATORIES LIMITED (YEAR 2010)

SHARE MONTH SENSEX Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 16357.960 16429.550 17527.770 17558.710 16944.630 17700.900 17868.290 17971.120 20069.120 20032.340 19521.250 20509.090 PRICE 1125.25 1142.7 1276.8 1262.2 1403.1 1452.2 1352.6 1362.45 1440.3 1658 1785.3 1662.55 0.438 6.684 0.177 -3.497 4.463 0.946 0.575 11.674 -0.183 -2.551 5.060 23.786 1.551 11.735 -1.143 11.163 3.499 -6.859 0.728 5.714 15.115 7.678 -6.876 42.306 0.192 44.681 0.031 12.231 19.920 0.894 0.331 2.405 0.679 x Y x2 y2 x*y

137.719 78.444 1.308 -0.202

124.614 -39.040 12.246 47.040 0.530 15.618 -6.486 0.419 66.707

136.289 32.649 0.034 6.509 25.607

228.460 -2.770 58.951 47.274 -19.589 -34.793

246.719 693.195 58.987

X = % return of exchange rate Y = % return of prices X = x N = 23.786 11 = 2.16 Y= y N = 42.306 11 = 3.846

N=11

80

x= 23.786 x2= 246.719 x*y= 58.987

y= 42.306 y2= 693.195

11 (58.987) (23.786) (42.306) 11 (246.719) (23.786)2 11 (693.195) (42.306)2

= -0.10 = nxy - x y nx - (x) 11 (58.987) (23.786) (42.306) 11 (246.719) (23.786)2 = -357.43427 2148.135

= -0.17 =y- x

=3.85-(-0.17)*2.16

=4.22 81

DR. REDDY'S LABORATORIES LIMITED (YEAR 2011)

SHARE MONTH SENSEX Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 18327.760 17823.400 19445.220 19135.960 18503.280 18845.870 18197.200 16676.750 16453.760 17705.010 16123.460 15454.920 PRICE 1624.45 1624.45 1624.45 1624.45 1624.45 1624.45 1624.45 1624.45 1624.45 1624.45 1624.45 1624.45 -2.752 9.099 -1.590 -3.306 1.852 -3.442 -8.355 -1.337 7.605 -8.933 -4.146 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 7.573 82.799 2.529 10.931 3.428 11.847 69.813 1.788 57.831 79.795 17.192 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 x Y x2 y2 x*y

-15.307 0.000

345.526 0.000

X = % return of exchange rate Y = % return of prices X = x N = -15.307 11 = -1.39 Y= y N = 0.000 11 =0

N=11

82

x= -15.307 x2= 345.526 x*y= 0.000

y= 0.000 y2=0.000

11 (0.000) (-15.307) (0.000) 11 (345.526) (-15.307)2 11 (0.000) (0.000)2

=0

nxy - x y nx - (x) 11 (0.000) (-15.307) (0.000) 11 (345.526) (-15.307)2

=0 =y- x

=0-0*-1.39

=0

83

DR. REDDY'S LABORATORIES LIMITED

Year 2007 2008 2009 2010 2011

Alpha -0.055 1.61 5.49 4.22 0

Beta 0.052 0.45 0.64 -0.17 0

Correlation 0.048 0.46 0.69 -0.1 0

6 5 4 3 2 1 0.052 0.048 0 -0.055 2007 -1 2008 1.61 0.46 0.45

5.49 4.22 Alpha Beta Correlation 0.69 0.64 000 2009 2010 -0.1 -0.17 2011

interpretation In this calculation >1 means higer the risk and higer the return. And in <1 means that lower the risk and lower the return. Same in correlation is positive means its a profitable for the company. Here above calculation in year 2007,2008,2009 beta is 0.052,0.44,0.56 respectively and in same year alpha is -0.047,9.43,4.75 respectively. But in 2010 beta is decrease with 0.13 and again decrease in year 2011 with the 0 so beta is <1 and in 2009 alpha decrease with the 3.27 and again decrease in 2011 with the 0, so alpha is =0. so its shows that it is a positive relationship between sensex index and script value which give no high return and not most risky. And also correlation is also not good for the company. 84

CIPLA LTD (YEAR 2007)

SHARE MONTH Jan-07 Feb-07 Mar-07 Apr-07 May-07 Jun-07 Jul-07 Aug-07 Sep-07 Oct-07 Nov-07 Dec-07 SENSEX 14090.92 12938.09 13072.1 13872.37 14544.46 14650.51 15550.99 15318.6 17291.1 19837.99 19363.19 20286.99 PRICE 245.8 233.3 235.7 210.85 217.65 208.45 190.7 167.35 182.4 178.75 183.45 212.6 -8.181 1.036 6.122 4.845 0.729 6.146 -1.494 12.877 14.729 -2.393 4.771 39.186 -5.085 1.029 66.935 1.073 25.862 1.058 41.606 1.066 X Y x2 y2 x*y

-10.543 37.479 3.225 -4.227 -8.515 23.472 0.532 37.778

111.156 -64.544 10.401 17.867 72.509 15.625 -3.082 -52.338

-12.244 2.233 8.993 -2.001 2.629 15.890

149.924 18.298 115.800 -29.475 -6.293

165.804 80.876 216.958 4.004 5.728 22.762 6.914

252.489 75.809

-10.850 580.753 733.061 112.470

X = % return of exchange rate Y = % return of prices X = x N = 39.186 11 = 3.265 Y= y N = -10.850 11 = -0.99

N=11

85

x= 39.186 x2= 580.753

y= -10.850 y2= 733.061

x*y= 112.470

11 (112.470) (39.186) (-10.850) 11 (580.753) (39.186)2 11 (733.061) (-10.850)2

= 0.27 = nxy - x y nx - (x) 11 (112.470) (39.186) (-10.850) 11 (580.753) (39.186)2 = 1662.3414 4852.7404

= 0.34 =y- x

=-0.99-0.34*3.27

=-2.10

86

CIPLA LTD (YEAR 2008)

SHARE MONTH Jan-08 Feb-08 Mar-08 Apr-08 May-08 Jun-08 Jul-08 Aug-08 Sep-08 Oct-08 Nov-08 Dec-08 SENSEX 17648.710 17578.720 15644.440 17287.310 16415.570 13461.600 14355.750 14564.530 12860.430 9788.060 9092.720 9647.310 PRICE 188.45 207.25 219.75 213.05 212.05 211.1 218.7 240.2 228.55 177.45 200.55 186.9 -0.397 9.976 0.157 121.078 110.277 25.428 323.817 44.119 2.115 136.898 99.523 36.377 9.296 0.220 0.201 12.961 96.645 23.524 -3.956 -66.366 -32.018 2.367 8.062 23.913 14.297 56.748 x Y x2 y2 x*y

-11.004 6.031 10.501 -5.043 -3.049 -0.469

-17.995 -0.448 6.642 1.454 3.600 9.831

-11.700 -4.850

-23.890 -22.358 570.737 -7.104 6.099 13.018 -6.806 50.466 37.201

499.896 534.143 169.462 -92.478 46.325 -41.513

-52.435 4.475

1422.295 994.430 403.199

X = % return of exchange rate Y = % return of prices X = x N = -52.435 11 = -4.77 Y= y N = 4.475 11 = 0.41

N=11

87

x= -52.435 x2= 1422.295 x*y= 403.199

y= 4.475 y2= 994.430

11 (403.199) (-52.43) (4.475) 11 (1422.29) (-52.43)2 11 (994.430) (4.475)2

= 0.39 = nxy - x y nx - (x) 11 (403.199) (-52.435) (4.475) 11 (1422.295) (-52.435)2

4669.8400 12895.8158

= 0.36 =y- x

=0.41-0.36*-4.77

= 2.13

88

CIPLA LTD (YEAR 2009)

SHARE MONTH Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 SENSEX 9424.240 8891.610 9708.500 11403.250 14625.250 14493.840 15670.310 15666.640 17126.840 15896.280 16926.220 17464.810 PRICE 192 191.1 219.75 240.7 222.95 253.3 275.7 271.5 279.75 287.75 320.15 335.6 -5.652 9.187 17.456 28.255 -0.899 8.117 -0.023 9.320 -7.185 6.479 3.182 68.239 -0.469 14.992 9.534 -7.374 13.613 8.843 -1.523 3.039 2.860 11.260 4.826 59.599 31.942 84.405 304.724 798.351 0.807 65.886 0.001 86.871 51.624 41.979 10.125 1476.714 0.220 224.765 90.889 54.381 185.312 78.203 2.321 9.234 8.178 126.783 23.289 803.572 2.649 137.736 166.421 -208.362 -12.231 71.781 0.036 28.322 -20.547 72.953 15.356 254.114 x Y x2 y2 x*y

X = % return of exchange rate Y = % return of prices X = x N = 68.239 11 = 6.20 Y= y N = 59.599 11 = 5.45

N=11

89

x= 68.239

y= 59.599

x2= 1476.714 y2= 803.572 x*y= 254.114

11 (254.114) (68.239) (59.599) 11 (1476.714) (68.239)2 11 (803.572) (59.599)2

= -0.16

nxy - x y nx - (x) 11 (254.114) (68.239) (59.599) 11 (1476.714) (68.239)2

-1271.72546 11587.2929

= -0.11 =y- x

= 5.45-(-0.11)*6.20

= 6.13 90

CIPLA LTD (YEAR 2010)

SHARE MONTH SENSEX Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 16357.960 16429.550 17527.770 17558.710 16944.630 17700.900 17868.290 17971.120 20069.120 20032.340 19521.250 20509.090 PRICE 317.3 315.3 337.1 342.55 318.95 337.75 326.6 303.35 321.65 352.25 343.7 369.9 0.438 6.684 0.177 -3.497 4.463 0.946 0.575 11.674 -0.183 -2.551 5.060 23.786 -0.630 6.914 1.617 -6.890 5.894 -3.301 -7.119 6.033 9.513 -2.427 7.623 17.227 0.192 44.681 0.031 12.231 19.920 0.894 0.331 0.397 47.804 2.614 47.465 34.743 10.898 50.677 -0.276 46.216 0.285 24.095 26.308 -3.122 -4.097 70.427 -1.743 6.193 38.575 x Y x2 y2 x*y

136.289 36.393 0.034 6.509 25.607 90.506 5.892 58.109

246.719 385.498 202.860

X = % return of exchange rate Y = % return of prices X = x N = 23.786 11 = 2.16 Y= y N = 17.227 11 = 1.57

N=11

91

x= 23.786 x2= 246.719

y= 17.227 y2= 385.498

x*y= 202.860

11 (202.860) (23.786) (17.227) 11 (246.719) (23.786)2 11 (385.498) (17.227)2

= 0.63 = nxy - x y nx - (x) 11 (202.860) (23.786) (17.227) 11 (246.719) (23.786)2

18\21.69675 21485.1352

= 0.85 =y- x

=1.57-0.85*2.16

=-0.27 92

CIPLA LTD (YEAR 2011)

SHARE MONTH Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 SENSEX 18327.760 17823.400 19445.220 19135.960 18503.280 18845.870 18197.200 16676.750 16453.760 17705.010 16123.460 15454.920 PRICE 332.25 299.7 321.05 308.85 326.1 330.35 307.85 280 282.7 294.55 327.95 319.55 -2.752 9.099 -1.590 -3.306 1.852 -3.442 -8.355 -1.337 7.605 -8.933 -4.146 -15.307 -9.797 7.124 -3.800 5.585 1.303 -6.811 -9.047 0.964 4.192 11.339 -2.561 -1.508 7.573 82.799 2.529 10.931 3.428 11.847 69.813 1.788 57.831 79.795 17.192 345.526 95.978 50.748 14.440 31.195 1.699 46.389 81.841 0.930 17.571 128.580 6.561 475.932 26.960 64.822 6.044 -18.466 2.413 23.443 75.588 -1.289 31.877 -101.292 10.620 120.720 X Y x2 y2 x*y

X = % return of exchange rate Y = % return of prices X = x N = -15.307 11 = -1.39 Y= y N = -1.508 11 = -0.14

N=11

93

x= -15.307 x2= 345.526 x*y= 120.720

y= -1.508 y2= 475.932

11 (120.720) (-15.307) (-1.508) 11 (345.526) (-15.307)2 11 (475.932) (-1.508)2

= 0.33 = nxy - x y nx - (x) 11 (120.720) (-15.307) (-1.508) 11 (345.526) (-15.307)2

1304.832644 3566.481751

= 0.36 =y- x

=-0.14-0.36*-1.39

=0.36

94

CIPLA LTD

Year 2007 2008 2009 2010 2011

Alpha -2.10 2.13 6.13 -0.27 0.36

Beta 0.34 0.36 -0.11 0.85 0.36

Correlation 0.27 0.39 -0.16 0.63 0.3

7 6 5 4 3 2 1 0 -1 -2 -3 -2.1 2007 2008 0.34 0.36 0.27 0.39 2.13

6.13

Alpha 0.85 0.63 0.36 0.36 0.3 2009 2010 -0.11 -0.27 -0.16 2011 Beta Correlation

interpretation In this calculation >1 means higer the risk and higer the return. And in <1 means that lower the risk and lower the return. Same in correlation is positive means its a profitable for the company. Here above calculation in year 2007,2008,2009 beta is 0.33,0.35,0.078 respectively and in same year alpha is -1.98,1.9,4.52 respectively. But in 2010 beta is increase with 0.84 and again decrease in year 2011 with the 0.36 so beta is <1 and in 2010 alpha decrease with the -0.23 and again increase in 2011 with the 0.33, so alpha is <0. so its shows that it is a negative relationship between sensex index and script value which give lower return and less risky because <0.and in 2011 correlation is positive then it good for the company.

95

LUPIN LABS (YEAR 2007)

SHARE MONTH Jan-07 Feb-07 Mar-07 Apr-07 May-07 Jun-07 Jul-07 Aug-07 Sep-07 Oct-07 Nov-07 Dec-07 SENSEX 14090.92 12938.09 13072.1 13872.37 14544.46 14650.51 15550.99 15318.6 17291.1 19837.99 19363.19 20286.99 PRICE 600.6 603.5 605.65 704.85 711.15 732.55 643.8 586.7 586.15 586.7 525.55 633.7 -8.181 1.036 6.122 4.845 0.729 6.146 -1.494 12.877 14.729 -2.393 4.771 39.186 0.483 0.356 16.379 0.894 3.009 66.935 1.073 37.479 23.472 0.532 0.233 0.127 268.275 0.799 9.055 146.778 78.663 -3.950 0.369 100.272 4.330 2.194 -74.465 13.254 -1.207 1.382 24.946 98.178 X Y x2 y2 x*y

-12.115 37.778 -8.869 -0.094 0.094 2.233

165.804 0.009 216.958 0.009 108.633 423.472

-10.423 5.728 20.578 10.293 22.762

580.753 1036.053 165.303

X = % return of exchange rate Y = % return of prices X = x N = 39.186 11 = 3.265 Y= y N = 10.293 11 = 0.94

N=11

96

x= 39.186 x2= 580.753

y= 10.293 y2= 1036.053

x*y= 165.303

11 (165.303) (39.186) (-10.293) 11 (580.753) (39.186)2 11 (1036.053) (-10.293)2

= 0.19 = nxy - x y nx - (x) 11 (165.303) (39.186) (-10.293) 11 (580.753) (39.186)2

1414.9882 4852.740

= 0.29 =y- x

=0.94-0.29*3.27

=-0.0083. 97

LUPIN LABS (YEAR 2008)

SHARE MONTH SENSEX Jan-08 Feb-08 Mar-08 Apr-08 May-08 Jun-08 Jul-08 Aug-08 Sep-08 Oct-08 Nov-08 Dec-08 PRICE x Y x2 y2 x*y

17648.710 570.6 17578.720 555.6 15644.440 493.9 17287.310 566.3 16415.570 710.95 13461.600 666.85 14355.750 737.4 14564.530 729.9 12860.430 719.9 9788.060 9092.720 9647.310 661.9 585.35 617.85 -0.397 -2.629 0.157 6.911 123.324 214.882 652.445 38.477 111.928 1.034 1.877 64.910 133.754 30.827 1.043 122.195 153.937 -128.805 111.622 70.272 -1.479 16.030 192.475 82.159 33.865

-11.004 -11.105 121.078 10.501 -5.043 14.659 25.543 110.277 25.428 323.817 44.119 2.115 136.898 570.737

-17.995 -6.203 6.642 1.454 10.580 -1.017

-11.700 -1.370 -23.890 -8.057 -7.104 6.099

-11.565 50.466 5.552 37.201

-52.435 14.388

1422.295 1380.367 653.313

X = % return of exchange rate Y = % return of prices X = x N = -52.435 11 = -4.77 Y= y N = 14.388 11 = 1.31

N=11

98

x= -52.435 x2= 1422.295

y= 14.388 y2= 1380.367

x*y= 653.313

11 (653.313) (-52.43) (14.388) 11 (1422.29) (-52.43)2 11 (1380.367) (14.388)2

= 0.57 = nxy - x y nx - (x) 11 (653.313) (-52.435) (14.388) 11 (1422.295) (-52.435)2

7940.87998 12895.8158

= 0.61

=y- x

= 1.31-0.61*-4.77

= 4.22 99

LUPIN LABS (YEAR 2009)

SHARE MONTH Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 SENSEX 9424.240 8891.610 9708.500 11403.250 14625.250 14493.840 15670.310 15666.640 17126.840 15896.280 16926.220 17464.810 PRICE 569.9 650.25 689.2 717.05 833.85 817.1 945.9 1015.15 1136.85 1226.25 1374.45 1490.3 -5.652 9.187 17.456 28.255 -0.899 8.117 -0.023 9.320 -7.185 6.479 3.182 68.239 14.099 5.990 4.041 16.289 -2.009 15.763 7.321 11.988 7.864 12.086 8.429 101.861 31.942 84.405 304.724 798.351 0.807 65.886 0.001 86.871 51.624 41.979 10.125 1476.714 198.781 35.880 16.329 265.330 4.035 248.474 53.598 143.721 61.840 146.062 71.045 1245.096 -79.683 55.031 70.540 460.246 1.805 127.949 -0.171 111.737 -56.501 78.304 26.820 796.077 X Y x2 y2 x*y

X = % return of exchange rate Y = % return of prices X = x N = 68.239 11 = 6.20 Y= y N = 101.861 11 = 9.26

N=11

100

x= 68.239

y= 101.861

x2= 1476.714 y2= 1245.096 x*y= 796.077

11 (796.077) (68.239) (101.861) 11 (1476.714) (68.239)2 11 (1245.096) (101.861)2

= 0.29 = nxy - x y nx - (x) 11 (796.077) (68.239) (101.861) 11 (1476.714) (68.239)2

1805.955321 11587.292879

= 0.15 =y- x

=9.26-0.15*6.20

= 8.33 101

LUPIN LABS (YEAR 2010)

SHARE MONTH Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 SENSEX 16357.960 16429.550 17527.770 17558.710 16944.630 17700.900 17868.290 17971.120 20069.120 20032.340 19521.250 20509.090 PRICE 1420.45 1497.65 1624.55 1707.75 1861 1966.1 1878.6 356.05 388.55 438.2 509.85 480.45 0.438 6.684 0.177 -3.497 4.463 0.946 0.575 11.674 -0.183 -2.551 5.060 23.786 5.435 8.473 5.121 8.974 5.648 -4.450 -81.047 9.128 12.778 16.351 -5.766 -19.356 0.192 44.681 0.031 12.231 19.920 0.894 0.331 136.289 0.034 6.509 25.607 246.719 29.538 71.796 26.229 80.529 31.894 19.806 6568.625 83.319 163.284 267.355 33.251 7375.628 2.379 56.639 0.904 -31.384 25.206 -4.209 -46.642 106.562 -2.342 -41.717 -29.180 36.217 X Y x2 y2 x*y

X = % return of exchange rate Y = % return of prices X = x N = 23.786 11 = 2.16 Y= y N = -19.356 11 = -1.76

N=11

102

x= 23.786 x2= 246.719 x*y= 36.217

y= -19.356 y2= 7375.628

11 (36.217) (23.786) (-19.356) 11 (246.719) (23.786)2 11 (7375.628) (19.356)2

= 0.065 = nxy - x y nx - (x) 11 (36.217) (23.786) (-19.356) 11 (246.719) (23.786)2

858.78616 -12609.0648

= -0.068 =y- x

=-1.76-(-0.068)*2.16

=-1.61 103

LUPIN LAB (YEAR 2011)

SHARE MONTH SENSEX Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 18327.760 17823.400 19445.220 19135.960 18503.280 18845.870 18197.200 16676.750 16453.760 17705.010 16123.460 15454.920 PRICE 422.6 381.75 415.35 439 469.85 448.55 454.6 449.95 472.95 470 472.75 447.2 -2.752 9.099 -1.590 -3.306 1.852 -3.442 -8.355 -1.337 7.605 -8.933 -4.146 -9.666 8.802 5.694 7.027 -4.533 1.349 -1.023 5.112 -0.624 0.585 -5.405 7.573 82.799 2.529 10.931 3.428 11.847 69.813 1.788 57.831 79.795 17.192 93.438 77.468 32.422 49.383 20.551 1.819 1.046 26.129 0.389 0.342 29.209 26.601 80.089 -9.056 -23.234 -8.394 -4.643 8.547 -6.835 -4.743 -5.227 22.409 X Y x2 y2 x*dy

-15.307 7.318

345.526 332.198 75.515

X = % return of exchange rate Y = % return of prices X = x N = -15.307 11 = -1.39 Y= y N = 7.318 11 = 0.67

N=11

104

x= -15.307 x2= 345.526 x*y= 75.515

y= 7.318 y2= 332.198

11 (75.515) (-15.307) (7.318) 11 (345.526) (-15.307)2 11 (332.198) (-15.307)2

= 0.26 = nxy - x y nx - (x) 11 (75.515) (-15.307) (-7.318) 11 (345.526) (-15.307)2

942.677556 596.356681

= 1.58 =y- x

=0.67-1.58*-1.39

=2.87

105

LUPIN LAB (YEAR 2011)

Year 2007 2008 2009 2010 2011

Alpha -0.0083 4.22 8.33 -1.61 2.87

Beta 0.29 0.61 0.15 -0.068 1.58

Correlation 0.19 0.57 0.29 0.065 0.26

10 8 6 4 2 0 -2 -4 4.22

8.33

2.87 1.58 0.29 0.61 0.15 0.065 0.26 0.19 0.57 0.29 -0.0083 2008 2009 -0.068 2011 2007 2010 -1.61

Alpha Beta Correlation

Interpretation
In this calculation >1 means higer the risk and higer the return. And in <1 means that lower the risk and lower the return. Same in correlation is positive means its a profitable for the company. Here above calculation in year 2007,2008,2009 beta is 0.29,0.60,0.2 respectively and in same year alpha is -0.089,3.82,7.35 respectively. But in 2010 beta is decrease with 0.072 and again increase in year 2011 with the 1.52 so beta is >1 and in 2010 alpha decrease with the -1.76 and again increase in 2011 with the 2.55, so alpha is >0. so its shows that it is a negative relationship between sensex index and script value which give high return and more risky because >1. And correlation also in positive so its benificial for the company. 106

Comparision of Beta for the pharmaceutical company for the year 2007-2011
Year Sun pharma Ranbaxy Dr.Reddys Cipla Lupin Labs Laboratories Laboratories 2007 2008 2009 2010 2011 0.47 0.67 0.28 2.97 0.46 0.91 1.18 1.79 0.92 0.59 0.052 0.44 0.56 0.13 0 0.33 0.35 0.078 0.84 0.36 0.29 0.60 0.20 0.072 1.52

3.5 3 2.5 2007 2 1.5 1 0.5 0 Sun pharma Ranbaxy Dr.Reddys Laboratories Laboratories Cipla Lupin Labs 0.67 0.47 0.46 0.28 1.79 1.52 1.18 0.91 0.92 0.59 0.84 0.6 0.56 0.44 0.35 0.36 0.29 0.33 0.2 0.078 0.072 0.052 0.13 0 2008 2009 2010 2011 2.97

Interpretation
In this calculation >1 means higer the risk and higer the return. And in <1 means that lower the risk and lower the return. Same in correlation is positive means its a profitable for the company. Here above calculation in year 2011 1st four companys Beta is 0.46,0.58,0,0.36 respectivly it means that <1 and in last company which is Lupin labs beta is 1.58 means >1.so lupin lebs is better option because anther comanyes Beta is <1 it gives lower the risk and lower the return. 107

Comparision of Alpha for the pharmaceutical company for the year 2007-2011
Year Sun pharma Ranbaxy Dr.Reddys Cipla Lupin Labs Laboratories Laboratories 2007 2008 2009 2010 2011 1.74 2.81 1.58 -8.45 1.7 -2.26 5.4 -0.6 0.67 -1.16 -0.047 9.43 4.75 3.27 0 -1.98 1.9 4.52 -0.23 0.33 -0.089 3.82 7.35 -1.76 2.55

12 10 8 6 4 2 0 -2 -4 -6 -8 -10 -8.45 Sun pharma -0.047 Ranbaxy Dr.Reddys -0.6 -1.16 Laboratories Laboratories -2.26 Cipla -0.23 -1.98 -0.089 Labs Lupin -1.76 2.81 1.74 1.58 1.7 5.4 4.75 3.27 0.67 0 4.52 1.9 0.33 9.43 7.35 3.82 2.55 2007 2008 2009 2010 2011

Interpretation
In this calculation >1 means higer the risk and higer the return. And in <1 means that lower the risk and lower the return. Same in correlation is positive means its a profitable for the company. Here above calculation in year 2011 sun pharma companys alpha is 1.7 which shows that >1 , Ranbaxy laboratories companys alpha is -1.16 it means <1 Dr.reddys Laboratories & cipla companies alpha is 0&0.33 respectively it means =0, and Lupin labs alpha is 2.55 means >1.so lupin lebs gives higer return. 108

Comparision of Correlation for the pharmaceutical company for the year 2007-2011
Year Sun pharma Ranbaxy Dr.Reddys Cipla Lupin Labs Laboratories Laboratories 2007 2008 2009 2010 2011 0.37 0.75 0.32 0.51 0.51 0.67 0.54 0.77 0.68 0.30 0.048 0.46 0.69 -0.1 0 0.27 0.39 -0.16 0.63 0.30 0.19 0.57 0.29 0.065 0.26

1 0.8 0.6 0.4 0.2 0.048 0 Sun pharma -0.2 -0.4 Ranbaxy Dr.Reddys -0.1 Laboratories Laboratories Cipla -0.16 Lupin Labs 0 0.75 0.51 0.51 0.37 0.32 0.77 0.67 0.68 0.54 0.46 0.3 0.39 0.27 0.3 0.290.26 0.19 0.065 0.69

0.63

0.57 2007 2008 2009 2010 2011

Interpretation
In correlation shows that the relationship between two or more variable. If r is positive means it is a positive relationship between two variable. And if r is negative it means it is a negative relationship between two variable. Here in above calculation sun pharma companys performance is best because its correlation is cantinouse increase and also shows that its a positive relationship between two veriables.

109

RATIO CALCULATION
1. SUN PHARMA COMPANY:
A. Current ratio = Current Asset / Current Labilities

2007 = 2,191.88/352.93 = 6.21

2008 = 2,911.62/1,108.52 = 2.63

2009 = 2,743.66/1,038.44 = 2.64

2010 = 1,694.04/730.93 = 2.32

2011 = 2,989.66/882.47 = 3.39

Year 2007 2008 2009 2010 2011

Ratio (%) 6.21 2.63 2.64 2.32 3.39

Fluctuation(%)

-0.57649 0.003802 -0.12121 0.461207

110

Fluctuation(%)
0.6 0.4 0.2 0 -0.2 -0.4 -0.6 -0.8 -0.58 2007 2008 2009 2010 -0.121 2011 0.004 Fluctuation(%) 0.46

Interpretatio
In Current Ratio generally believed that 2:1 ratio shows that a comfortable working capital.The above calculation of current ratio in 2007 ,6.21% and it decrease in year 2008,2009,2010 with the 2.63%,2.64%,2.32% respectively. And again increase in 2011 with the 3.39% and in 2011 current liabilities is also increase which shows that whether the financial position and performance of the company has decrease. B . Return on shareholders fund = Net profile after tax/shareholders fund*100

2007 = 628.88/2449.49*100 = 25.67

2008 = 1,014.04/4207.62*100 = 24.1

2009 = 1,276.99/5151.42*100 = 24.79

2010 = 898.65/5717.98*100 = 15.72 111

2011 = 1,383.80/6680.53*100 = 20.71

Year 2007 2008 2009 2010 2011

Ratio (%) 25.67 24.1 24.79 15.72 20.71

Fluctuation(%)

-0.06116 0.028631 -0.36587 0.31743

Fluctuation(%)
0.4 0.2 0.029 0 -0.2 -0.4 -0.6 2007 2008 2009 2010 2011 -0.06 Fluctuation(%) 0.31

-0.37

Interpretation
This Ratio shows that profitability of a company to be compare other pharmaceticals company.The above calculation of Return on shareholders fund ratio in 2007 ,25.67% and it decrease in year 2008,2009,2010 with the 24.1%,24.79%,15.72% respectively. And again increase in 2011 with the 20.71% and in 2011 net profit(EAT) increase compare to 2007 and share holders fund also constantly increase which shows that whether the financial position and performance of the company has increase.

112

C . Net profit ratio=Net profit after tax / Net Sales *100

2007 = 628.88/1,717.21*100 = 36.62

2008 = 1014.04/2,169.97*100 = 46.73

2009 = 1276.99/2,693.83*100 = 47.4

2010 = 898.65/1,593.57*100 = 56.39

2011 = 1383.80/1,780.50*100 = 77.72

Year 2007 2008 2009 2010 2011

Ratio (%) 36.62 46.73 47.4 56.39 77.72

Fluctuation(%)

0.276079 0.014338 0.189662 0.378259

113

Fluctuation(%)
0.4 0.35 0.3 0.25 0.2 0.15 0.1 0.05 0 2007 2008 2009 2010 2011 0.014 0.28 0.19 Fluctuation(%) 0.38

Interpretation
In This Ratio indicates what portion of sales revenue is left to the proprietors after all opareting expenses are met. Higher this Ratio the better will be the profitability.The above calculation of Net profit ratio in 2007 ,36.62% and it increase in year 2008,2009,2010 with the 46.73%,47.4%,56.39% respectively. And again increase in 2011 with the 77.72% and in 2011 net profit(EAT) increase compare to 2007 and sales are also increases 2011 compare to 2010 which shows that whether the financial position and performance of the company has first decrease and then increase.

D . Debt equity ratio= long term debts/Shareholder's fund

2007 = 3,517.64/2449.49 = 1.44

2008 = 4310.14/4207.62 = 1.02

2009 = 5175.02/5151.42 = 1 114

2010 = 5,747.47/5717.98 = 1

2011 = 6,731.06/6680.53 = 1

Year 2007 2008 2009 2010 2011

Ratio (%) 1.44 1.02 1 1 1

Fluctuation(%)

-0.29167 -0.01961 0 0

Fluctuation(%)
0 -0.05 20072008200920102011 -0.019 -0.1 -0.15 -0.2 -0.25 -0.3 -0.35 -0.29 Fluctuation(%)

Interpretation
This ratio is shows that relationship between the outside long-term liabilities and owners funds.A higer ratio means that outside creditors have a larger claim than the owners of the business.if this ratio is lower , it is not profitable from the view point of equity shareholders.The above calculation of Debt Equity ratio in 2007,1.44% and it 115

decrease in year 2008,2009,2010 with the 1.02%,1%,1% respectively. And in 2011 ratio is constant with the 1% and long term liabilities are constant increase and Share holders fund are also constantly increases which shows that whether the financial position and performance of the company has decrease.

E . Earning Par Share[EPS] =Net Profit-Dividend on prefrence share / No. of Equity Share

2007 = 628.88-0.08 / 96.70 = 6.5

2008 = 1,014.04-0.05/ 103.56 = 9.79

2009 = 1,276.99-0/103.56 = 12.33

2010 = 898.65-0/103.56 = 8.68

2011 = 1,383.80-0/103.56 = 13.36

Year 2007 2008 2009 2010 2011

Ratio (%) 6.5 9.79 12.33 8.68 13.36

Fluctuation(%)

0.506154 0.259448 -0.29603 0.539171

116

Fluctuation(%)
0.6 0.4 0.2 Fluctuation(%) 0 -0.2 -0.4 2007 2008 2009 2010 2011 -0.3 0.51 0.26 0.54

Interpretation
This ratio shows that profitability of the firm from the owners point of view. Higer the ratio its good for the conmpany.The above calculation of Earning per share ratio in 2007 ,6.5% and it increase in year 2008,2009,2010 with the 9.79%,12.33%,8.63% respectively. And again increase in 2011 with the 13.36% and in 2011 net profit(EAT) increase compare to 2007 and No. equity share are also constant increases 2011 compare to 2007.which shows that whether the financial position and performance of the company has first decrease and then increase.

F . Dividend Per Share[DPS] =Dividend paid to Equity Shareholder's / No. of Equity Share *100

2007 = 13.001/96.70*100 = 13.44

2008 = 21.747/103.56*100 = 21

2009 = 28.479/103.56*100 = 27.5 117

2010 = 28.479/103.56*100 = 27.5

2011 = 36.245/103.56*100 = 35

Year 2007 2008 2009 2010 2011

Ratio (%) 13.44 21 27.5 27.5 35

Fluctuation(%)

0.5625 0.309524 0 0.272727

Fluctuation(%)
0.6 0.5 0.4 0.3 0.2 0.1 0 0 2007 2008 2009 2010 2011 0.31 0.56

0.27 Fluctuation(%)

118

Interpretation
In this ratio if dividend is constant then it good for the comopany.The above calculation of Dividend per share ratio in 2007 ,13.44% and it increase in year 2008,2009,2010 with the 21%,27.5%,27.5% respectively. And again increase in 2011 with the 35% and dividend per equity share is increase compare and No. equity share are also constant increases 2011 compare to 2007.which shows that whether the financial position and performance of the company has first decrease and then increase.

119

2. RANBAXY LABORATORIES LIMITED :

A. Current ratio = Current Asset / Current Labilities

2006 = 2620.99/1,508.24 = 1.74

2007 = 2922.42/1,915.49 = 1.53

2008 = 2,743.66/1,038.44 = 2.64

2009 = 5,486.90/3,845.92 = 1.43

2010 = 6,965.27/3,418.90 = 2.04

Year 2007 2008 2009 2010 2011

Ratio (%) 1.74 1.53 1.42 1.43 2.04

Fluctuation(%)

-0.12069 -0.0719 0.007042 0.426573

120

Fluctuation(%)
0.5 0.4 0.3 0.2 0.1 0 -0.1 -0.2 2006 2007 2008 2009 2010 -0.07 -0.12 0.007 Fluctuation(%) 0.43

Interpretation
In Current Ratio generally believed that 2:1 ratio shows that a comfortable working capital.The above calculation of current ratio in 2006 ,1.74% and it decrease in year ,2008,2009 with the ,1.42%,1.43% respectively. And again increase in 2010 with the 2.04% and in 2011 current liabilities is also increase which shows that whether the financial position and performance of the company has decrease.

B. Return on shareholder's fund=Net profit after tax/Shareholders fund *100

2006 = 395.13/2350.01*100 = 16.81

2007 = 617.72/2538.4*100 = 24.34

2008 = 1,044.80/3716.77*100 = 28.11

2009 = 571.98/4134.6*100 = 13.83

121

2010 = 1,148.73/5132.4*100 = 22.38

Year 2007 2008 2009 2010 2011

Ratio (%) 16.81 24.34 28.11 13.83 22.38

Fluctuation(%)

0.447948 0.154889 -0.508 0.618221

Fluctuation(%)
0.8 0.6 0.4 0.2 0 -0.2 -0.4 -0.6 -0.51 2006 2007 2008 2009 2010 0.15 Fluctuation(%) 0.45 0.62

Interpretation
This Ratio shows that profitability of a company to be compare other pharmaceticals company.The above calculation of Return on shareholders fund ratio in 2006 16.81% and in year 2007,2008,2009 with the 24.34%,28.11%,13.83% respectively. And again increase in 2011 with the 20.71% and in 2011 net profit(EAT) increase compare to 2007 and share holders fund also constantly increase which shows that whether the financial position and performance of the company has increse. 122

C . Net profit ratio=Net profit after tax / Net Sales *100

2006 = 395.13/3,533.06*100 = 11.18

2007 = 617.72/3,893.06*100 = 15.87

2008 = 1044.8/4,400.91*100 = 23.74

2009 = 571.98/4,130.15*100 = 13.85

2010 = 1,148.73/4,383.95*100 = 26.2

Year 2007 2008 2009 2010 2011

Ratio (%) 11.18 15.87 23.74 13.85 26.2

Fluctuation(%)

0.419499 0.495904 -0.4166 0.891697

123

Fluctuation(%)
1 0.49 Fluctuation(%) 0 2006 2007 2008 2009 2010 -0.5 -0.42 0.89 0.42

0.5

Interpretation
In This Ratio indicates what portion of sales revenue is left to the proprietors after all opareting expenses are met. Higher this Ratio the better will be the profitability.The above calculation of Net profit ratio in 2006 ,11.18% and it increase in year 2007,2008,2009 with the 15.87%,23.74%,13.85% respectively. And again increase in 2010 with the 26.20% and in 2011 net profit(EAT) increase compare to 2007 and sales are also increases 2011 compare to 2010 which shows that whether the financial position and performance of the company has first decrease and then increase.

D . Debt equity ratio= long term debts/Shareholder's fund

2006 = 3178.6/2350.01 = 1.35

2007 = 503.66/2538.4 = 0.2

2008 = 3725.37/3716.77 = 1

124

2009 = 3348.38/4134.6 = 0.81

2010 = 13653.83/5132.4 = 2.66

Year 2007 2008 2009 2010 2011

Ratio (%) 1.35 0.2 1 0.81 2.66

Fluctuation(%)

-0.8 0 -0.19 1.66

Fluctuation(%)
2 1.5 1 0.5 0 -0.5 20062007200820092010 -0.19 -1 -0.8 0 Fluctuation(%) 1.66

Interpretation
This ratio is shows that relationship between the outside long-term liabilities and owners funds.A higer ratio means that outside creditors have a larger claim than the owners of the business.if this ratio is lower , it is not profitable from the view point of equity shareholders.The above calculation of Debt Equity ratio in 2006,1.35% and it 125

decrease in year 2007,2008,2010 with the 0.2%,1%,0.10% respectively. And in 2011 ratio is with the 2.66% and long term liabilities are constant increase and Share holders fund are also constantly increases which shows that whether the financial position and performance of the company has increase.

E . Earning Par Share[EPS] =Net Profit-Dividend on prefrence share / No. of Equity Share

2006 = 395.13-0/186.34 = 2.12

2007 = 617.72-0/186.54 = 3.31

2008 = 1,044.80-0/210.19 = 4.97

2009 = 571.98-0/210.21 = 2.72

2010 = 1,148.73-0/210.52 = 5.46

Year 2006 2007 2008 2009 2010

Ratio (%) 2.12 3.31 4.97 2.72 5.46

Fluctuation(%)

0.561321 0.501511 -0.45272 1.007353

126

Fluctuation(%)
1.5 1.01 1 0.56 0.5 0.5 Fluctuation(%) 0 2006 2007 2008 2009 2010 -0.5 -1 -0.45

Interpretation
This ratio shows that profitability of the firm from the owners point of view. Higer the ratio its good for the conmpany.The above calculation of Earning per share ratio in 2007 2.12% and it increase in year 2008,2009,2010 with the 3.31%,4.97%,2.72% respectively. And again increase in 2011 with the 5.40% and in 2011 net profit(EAT) increase compare to 2007 and No. equity share are also constant increases 2011 compare to 2007.which shows that whether the financial position and performance of the company has first decrease and then increase.

F . Dividend Per Share[DPS] =Dividend paid to Equity Shareholder's / No. of Equity Share *100

2006 = 31.689/186.34*100 = 17

2007 = 31.715/186.54*100 = 17

127

2008 = 0/210.19*100 = 0

2009 = 0/210.21*100 = 0

2010 = 8.421/210.52*100 = 4

Year 2006 2007 2008 2009 2010

Ratio (%) 17 17 0 0 4

Fluctuation(%)

0 -1 0 0

0 0 -0.2 -0.4 -0.6 -0.8 -1

Fluctuation(%)
0 0

2006 2007 2008 2009 2010

Fluctuation(%)

-1 -1.2

128

Interpretation
In this ratio if dividend is constant then it good for the comopany.The above calculation of Dividend per share ratio in 2007 17.0% and it increase in year 2008,2009,2010 with the 17%,0%,0% respectively. And again increase in 2011 with the 0% and dividend per equity share is increase compare and No. equity share are also constant increases 2011 compare to 2007.which shows that whether the financial position and performance of the company has first increase and then decrease

129

3.

DR. REDDY'S LABORATORIES LIMITED

A. Current ratio = Current Asset / Current Labilities

2007 = 4,028.55/1254.93 = 3.21

2008 = 3348.01/1,387.74 = 2.41

2009 = 3870.4/1,458.10 = 2.65

2010 = 3647.31/883.20 = 4.13

2011 = 4563.7/1,822.10 = 2.51 Year 2007 2008 2009 2010 2011 Ratio (%) 3.21 2.41 2.65 4.13 2.51 -0.24922 0.099585 0.558491 -0.39225 Fluctuation(%)

130

Fluctuation(%)
0.6 0.4 0.2 0 -0.2 -0.4 -0.6 2007 2008 2009 2010 2011 -0.25 -0.39 0.099 Fluctuation(%) 0.55

Interpretation
In Current Ratio generally believed that 2:1 ratio shows that a comfortable working capital.The above calculation of current ratio in 2007 ,3.21% and it decrease in year 2008,2009,2010 with the 2.41%,2.65%,4.13% respectively. And decrease in 2011 with the 2.51% and in 2011 current liabilities is also increase which shows that whether the financial position and performance of the company has decrease.

B . Return on shareholders fund = Net profile after tax/shareholders fund*100

2007 = 1168.66/4373.36*100 = 26.72

2008 = 473.67/4811.81*100 = 9.84

2009 = 560.8/5259.1*100 = 10.66

131

2010 = 846/5914.6*100 = 14.3

2011 = 893/6020.2*100 = 14.83

Year 2007 2008 2009 2010 2011

Ratio (%) 26.72 9.84 10.66 14.3 14.83

Fluctuation(%)

-0.63174 0.083333 0.341463 0.037063

Fluctuation(%)
0.4 0.2 0 -0.2 -0.4 -0.6 -0.8 -0.63 2007 2008 2009 2010 2011 Fluctuation(%) 0.083 0.34 0.037

Interpretation
This Ratio shows that profitability of a company to be compare other pharmaceticals company.The above calculation of Return on shareholders fund ratio in 2007 ,26.72% and it decrease in year 2008,2009,2010 with the 9.84%,10.66%,14.30% respectively. 132

And again increase in 2011 with the 14.83% and in 2011 net profit(EAT) increase compare to 2007 and share holders fund also constantly increase which shows that whether the financial position and performance of the company has increase. Because in 2011 ratio is increse at 14.83% its good for the company.

C . Net profit ratio=Net profit after tax / Net Sales *100

2007 = 1168.66/2,455.91*100 = 47.59

2008 = 473.67/2,761.19*100 = 17.15

2009 = 560.8/3,241.50*100 = 17.3

2010 = 846/3,307.10*100 = 25.58

2011 = 893/3,969.00*100 = 22.5

Year 2007 2008 2009 2010 2011

Ratio (%) 47.59 17.15 17.3 25.58 22.5

Fluctuation(%)

-0.63963 0.008746 0.478613 -0.12041

133

Fluctuation(%)
0.6 0.4 0.2 0 -0.2 -0.4 -0.6 -0.8 -0.64 2007 2008 2009 2010 2011 -0.12 0.0087 Fluctuation(%) 0.47

Interpretation
In This Ratio indicates what portion of sales revenue is left to the proprietors after all opareting expenses are met. Higher this Ratio the better will be the profitability.The above calculation of Net profit ratio in 2007 ,47.59% and it decrease in year 2008,2009 with the 17.15%,17.30 respectively. And again increase in 2011 with the 22.50% and in 2011 net profit(EAT) increase compare to 2007 and sales are also increases 2011 compare to 2010 which shows that whether the financial position and performance of the company has first increase and then decrease.

D . Debt equity ratio= long term debts/Shareholder's fund

2007 = 329.9/4373.36 = 0.075

2008 = 462.31/4811.81 = 0.088

2009 = 640.3/5259.1 = 0.12 134

2010 = 563.2/5914.6 = 0.095

2011 = 1444.8/6020.2 = 0.24

Year 2007 2008 2009 2010 2011

Ratio (%) 0.075 0.088 0.12 0.095 0.24

Fluctuation(%)

0.173333 0.363636 -0.20833 1.526316

Fluctuation(%)
2 1.53 1.5 1 Fluctuation(%) 0.5 0 -0.5 2007 2008 2009 2010 2011 -0.21 0.36 0.17

Interpretation
This ratio is shows that relationship between the outside long-term liabilities and owners funds.A higer ratio means that outside creditors have a larger claim than the owners of the business.if this ratio is lower , it is not profitable from the view point of equity shareholders.The above calculation of Debt Equity ratio in 2007,0.075% and it 135

decrease in year 2008,2009,2010 with the 0.088%,0.12%,0.095% respectively. And in 2011 ratio is increase with the 0.24% and long term liabilities are constant increase and Share holders fund are also constantly increases which shows that whether the financial position and performance of the company has increase.

E . Earning Par Share[EPS] =Net Profit-Dividend on prefrence share / No. of Equity Share

2007 = 1,168.66-0/83.96 = 13.92

2008 = 473.67-0/84.09 = 5.63

2009 = 560.80/84.20 = 6.67

2010 = 846.00/84.40 = 10.02

2011 = 893.00/84.60 = 10.56

Year 2007 2008 2009 2010 2011

Ratio (%) 13.92 5.63 6.67 10.02 10.56

Fluctuation(%)

-0.59555 0.184725 0.502249 0.053892

136

Fluctuation(%)
0.6 0.4 0.2 0 -0.2 -0.4 -0.6 -0.8 -0.59 2007 2008 2009 2010 2011 0.18 0.05 Fluctuation(%) 0.5

Interpretation
This ratio shows that profitability of the firm from the owners point of view. Higer the ratio its good for the conmpany.The above calculation of Earning per share ratio in 2007 13.92% and it increase in year 2008,2009,2010 with the 5.63%,6.67%,10.02% respectively. And again increase in 2011 with the 10.56% and in 2011 net profit(EAT) increase compare to 2007 and No. equity share are also constant increases 2011 compare to 2007.which shows that whether the financial position and performance of the company has first decrease and then increase.

F . Dividend Per Share[DPS] =Dividend paid to Equity Shareholder's / No. of Equity Share *100

2007 = 6.297/83.96*100 = 7.5

2008 = 6.306/84.09*100 = 7.5

137

2009 = 10.53/84.20*100 = 12.5

2010 = 19/84.40*100 = 22.5

2011 = 19.04/84.60*100 = 22.5

Year 2007 2008 2009 2010 2011

Ratio (%) 7.5 7.5 12.5 22.5 22.5

Fluctuation(%)

0 0.666667 0.8 0

1 0.8 0.6 0.4

Fluctuation(%) 0.8
0.67

Fluctuation(%) 0.2 0 0 2007 2008 2009 2010 2011 0

138

Interpretation
In this ratio if dividend is constant then it good for the comopany.The above calculation of Dividend per share ratio in 2007 ,7.5% and it increase in year 2008,2009,2010 with the 7.5%,12.5%,22.5% respectively. And again increase in 2011 with the 22.7% and dividend per equity share is increase compare and No. equity share are also constant increases 2011 compare to 2007.which shows that whether the financial position and performance of the company has decrease.

139

4. CIPLA LTD
A. Current ratio = Current Asset / Current Labilities

2007 = 2,834.68/1,053.91 = 2.69

2008 = 3348.01/1,387.74 = 2.68

2009 = 4,419.57/1,568.71 = 2.82

2010 = 5,483.42/2,524.77 = 4.13

2011 = 6,022.56/2,659.59 = 2.26

Year 2007 2008 2009 2010 2011

Ratio (%) 2.69 2.68 2.82 2.17 2.26

Fluctuation(%)

-0.00372 0.052239 -0.2305 0.041475

140

Fluctuation(%)
0.1 0.05 0.05 0 -0.05 -0.1 -0.15 -0.2 -0.25 -0.23 2007 -0.003 2009 2010 2011 2008 Fluctuation(%) 0.04

Interpretation
In Current Ratio generally believed that 2:1 ratio shows that a comfortable working capital.The above calculation of current ratio in 2007 ,2.69% and in year

2008,2009,2010 with the 2.68%,2.82%,2.17% respectively. And again increase in 2011 with the 2.26% and in 2011 current liabilities is also increase which shows that whether the financial position and performance of the company has decrease.

B . Return on shareholders fund = Net profile after tax/shareholders fund*100

2007 = 668.03/3227.3*100 = 20.7

2008 = 701.43/3746.85*100 = 18.72

2009 = 776.81/4341.78*100 = 17.89

141

2010 = 1081.49/5905.12*100 = 18.31

2011 = 960.39/6603.98*100 = 14.54

Year 2007 2008 2009 2010 2011

Ratio (%) 20.7 18.72 17.89 18.31 14.54

Fluctuation(%)

-0.09565 -0.04434 0.023477 -0.2059

Fluctuation(%)
0.05 0 -0.05 -0.1 -0.15 -0.2 -0.25 -0.21 2007 2008 2009 2010 2011 -0.044 -0.095 Fluctuation(%) 0.023

Interpretation
This Ratio shows that profitability of a company to be compare other pharmaceticals company.The above calculation of Return on shareholders fund ratio in 2007 ,20.70%

142

and it decrease in year 2008,2009,2010 with the 18.72%,17.89%,18.31% respectively. And again decrease in 2011 with the 14.54% and in 2011 net profit(EAT) increase compare to 2007 and share holders fund also constantly increase which shows that whether the financial position and performance of the company has decrease.

C . Net profit ratio=Net profit after tax / Net Sales *100

2007 = 668.03/2,740.16*100 = 24.38

2008 = 701.43/3,351.12*100 = 20.93

2009 = 776.81/3,989.45*100 = 19.47

2010 = 1081.49/4,224.76*100 = 25.6

2011 = 960.39/5,038.03*100 = 19.06

Year 2007 2008 2009 2010 2011

Ratio (%) 24.38 20.93 19.47 25.6 19.06

Fluctuation(%)

-0.14151 -0.06976 0.314843 -0.25547

143

Fluctuation(%)
0.4 0.3 0.2 0.1 0 -0.1 -0.2 -0.3 2007 2008 2009 2010 2011 -0.069 -0.14 -0.26 Fluctuation(%) 0.31

Interpretation
In This Ratio indicates what portion of sales revenue is left to the proprietors after all opareting expenses are met. Higher this Ratio the better will be the profitability.The above calculation of Net profit ratio in 2007 ,24.38% and it increase in year 2008,2009,2010 with the 20.93%,19.47%,25.60%respectively. And again decrease in 2011 with the 19.60% and in 2011 net profit(EAT) increase compare to 2007 and sales are also increases 2011 compare to 2010 which shows that whether the financial position and performance of the company has first increase and then decrease.

D . Debt equity ratio= long term debts/Shareholder's fund

2007 = 123.56/3227.3 = 0.038

2008 = 580.53/3746.85 = 0.15

2009 = 940.24/4341.78 = 0.22 144

2010 = 5.07/5905.12 = 0.0009

2011 = 441.39/6603.98 = 0.067

Year 2007 2008 2009 2010 2011

Ratio (%) 0.038 0.15 0.22 0.0009 0.067

Fluctuation(%)

2.947368 0.466667 -0.99591 73.44444

Fluctuation(%)
80 60 40 Fluctuation(%) 20 0 -20 2007 2008 2009 -0.99 2011 2010 2.95 0.46 73.44

Interpretation
This ratio is shows that relationship between the outside long-term liabilities and owners funds.A higer ratio means that outside creditors have a larger claim than the owners of the business.if this ratio is lower , it is not profitable from the view point of equity shareholders.The above calculation of Debt Equity ratio in 2007,0.038% and it decrease in year 2008,2009,2010 with the 0.15%,0.22%,0.0009% respectively. And in 145

2011 ratio is increse with the 0.067% and long term liabilities are constant increase and Share holders fund are also constantly increases which shows that whether the financial position and performance of the company has increase.

E . Earning Par Share[EPS] =Net Profit-Dividend on prefrence share / No. of Equity Share

2007 = 668.03-0/155.46 = 4.3

2008 = 701.43-0/155.46 = 4.51

2009 = 776.81-0/155.46 = 5

2010 = 1081.49-0/160.58 = 6.73

2011 = 960.39-0/160.58 = 5.98

Year 2007 2008 2009 2010 2011

Ratio (%) 4.3 4.51 5 6.73 5.98

Fluctuation(%)

0.048837 0.108647 0.346 -0.11144

146

Fluctuation(%)
0.4 0.3 0.2 0.1 0 -0.1 -0.2 2007 2008 2009 2010 2011 -0.11 0.049 0.1 Fluctuation(%) 0.346

Interpretation
This ratio shows that profitability of the firm from the owners point of view. Higer the ratio its good for the conmpany.The above calculation of Earning per share ratio in 2007 4.30% and it increase in year 2008,2009,2010 with the 4.51%,5%,6.73% respectively. And again increase in 2011 with the 5.98% and in 2011 net profit(EAT) increase compare to 2007 and No. equity share are also constant increases 2011 compare to 2007.which shows that whether the financial position and performance of the company has first decrease and then decrease.

F . Dividend Per Share[DPS] =Dividend paid to Equity Shareholder's / No. of Equity Share *100

2007 = 15.546/155.46*100 = 10

2008 = 15.546/155.46*100 = 10 147

2009 = 15.546/155.46*100 = 10

2010 = 16.058/160.58*100 = 10

2011 = 22.481/160.58*100 = 14

Year 2007 2008 2009 2010 2011

Ratio (%) 10 10 10 10 14

Fluctuation(%)

0 0 0 0.4

Fluctuation(%)
0.5 0.4 0.4 0.3 0.2 0.1 0 0 2007 2008 2009 2010 2011 0 0 Fluctuation(%)

148

Interpretation
In this ratio if dividend is constant then it good for the comopany.The above calculation of Dividend per share ratio in 2007 ,10% and it increase in year 2008,2009,2010 with the 10%,10%,10% respectively. And again increase in 2011 with the 14% and dividend per equity share is increase compare and No. equity share are also constant increases 2011 compare to 2007.which shows that whether the financial position and performance of the company has first decrease and then increase

149

5. LUPIN LABS
A. Current ratio = Current Asset / Current Labilities

2007 = 1,482.10/531.36 = 2.79

2008 = 1,733.65/675.56 = 2.57

2009 = 1,820.38/1,065.97 = 1.71

2010 = 2,333.50/952.43 = 2.45

2011 = 2,717.34/1,099.80 = 2.47

Year 2007 2008 2009 2010 2011

Ratio (%) 2.79 2.57 1.71 2.45 2.47

Fluctuation(%)

-0.07885 -0.33463 0.432749 0.008163

150

Fluctuation(%)
0.5 0.4 0.3 0.2 0.1 0 -0.1 -0.2 -0.3 -0.4 -0.33 2007 2008 2009 2010 2011 -0.079 0.008 Fluctuation(%) 0.43

Interpretation
In Current Ratio generally believed that 2:1 ratio shows that a comfortable working capital.The above calculation of current ratio in 2007 ,2.79% and it decrease in year 2008,2009,2010 with the 2.57%,1.71%,2.45% respectively. And again increase in 2011 with the 2.47% and in 2011 current liabilities is also increase which shows that whether the financial position and performance of the company has decrease. B . Return on shareholders fund = Net profile after tax/shareholders fund*100

2007 = 297.98/888.41*100 = 33.54

2008 = 442.8/1317.05*100 = 33.62

2009 = 416.96/1375.3*100 = 30.32

2010 = 647.85/2530.55*100 = 25.6 151

2011 = 809.98/3152.66*100 = 25.69

Year 2007 2008 2009 2010 2011

Ratio (%) 33.54 33.62 30.32 25.6 25.69

Fluctuation(%)

0.002385 -0.09816 -0.15567 0.003516

Fluctuation(%)
0.05 0.002 0 -0.05 Fluctuation(%) -0.1 -0.15 -0.155 -0.2 -0.09 0.003

Interpretation
This Ratio shows that profitability of a company to be compare other pharmaceticals company.The above calculation of Return on shareholders fund ratio in 2007 ,33.54% and it decrease in year 2008,2009,2010 with the 33.62%,30.32%,25.60% respectively. And again increase in 2011 with the 25.69% and in 2011 net profit(EAT) increase compare to 2007 and share holders fund also constantly increase which shows that whether the financial position and performance of the company has decrease. 152

C . Net profit ratio=Net profit after tax / Net Sales *100

2007 = 297.98/1,652.23*100 = 18.03

2008 = 442.8/2,034.08*100 = 21.77

2009 = 416.96/2,380.58*100 = 17.52

2010 = 647.85/2,848.98*100 = 22.74

2011 = 809.98/3,496.39*100 = 23.17

Year 2007 2008 2009 2010 2011

Ratio (%) 18.03 21.77 17.52 22.74 23.17

Fluctuation(%)

0.207432 -0.19522 0.297945 0.018909

153

Fluctuation(%)
0.4 0.3 0.2 0.1 0 -0.1 -0.2 -0.3 2007 2008 2009 2010 2011 -0.19 0.01 Fluctuation(%) 0.21 0.29

Interpretation
In This Ratio indicates what portion of sales revenue is left to the proprietors after all opareting expenses are met. Higher this Ratio the better will be the profitability.The above calculation of Net profit ratio in 2007 ,18.03% and it in year 2008,2009,2010 with the 21.77%,17.52%,22.74% respectively. And again increase in 2011 with the 23.17% and in 2011 net profit(EAT) increase compare to 2007 and sales are also increases 2011 compare to 2010 which shows that whether the financial position and performance of the company has increse because net profit ratio is increse..

D . Debt equity ratio= long term debts/Shareholder's fund

2007 = 864.55/888.41 = 0.97

2008 = 965.55/1317.05 = 0.73

2009 = 944.91/1375.3 = 0.69

154

2010 = 906.81/2530.55 = 0.36

2011 = 983.29/3152.66 = 0.31

Year 2007 2008 2009 2010 2011

Ratio (%) 0.97 0.73 0.69 0.36 0.31

Fluctuation(%)

-0.24742 -0.05479 -0.47826 -0.13889

Fluctuation(%)
0 -0.1 -0.2 -0.3 -0.4 -0.5 -0.6 -0.48 2007 2008 2009 2010 2011 -0.05 -0.13 -0.25 Fluctuation(%)

Interpretation
This ratio is shows that relationship between the outside long-term liabilities and owners funds.A higer ratio means that outside creditors have a larger claim than the owners of the business.if this ratio is lower , it is not profitable from the view point of equity shareholders.The above calculation of Debt Equity ratio in 2007,0.97% and it 155

decrease in year 2008,2009,2010 with the 0.73%,0.69%,0.36% respectively. And in 2011 ratio is increase with the o.31% and long term liabilities are constant increase and Share holders fund are also constantly increases which shows that whether the financial position and performance of the company has decrease.

E . Earning Par Share[EPS] =Net Profit-Dividend on prefrence share / No. of Equity Share

2007 = 297.98/80.34 = 3.71

2008 = 442.80/82.08 = 5.39

2009 = 416.96/82.82 = 5.03

2010 = 647.85/88.94 = 7.28

2011 = 809.98/89.24 = 9.08

Year 2007 2008 2009 2010 2011

Ratio (%) 3.71 5.39 5.03 7.28 9.08

Fluctuation(%)

0.45283 -0.06679 0.447316 0.247253

156

Fluctuation(%)
0.5 0.4 0.3 0.2 0.1 0 -0.1 2007 2008 2009 2010 2011 -0.067 0.25 Fluctuation(%) 0.45 0.45

Interpretation
This ratio shows that profitability of the firm from the owners point of view. Higer the ratio its good for the conmpany.The above calculation of Earning per share ratio in 2007 3.71% and it increase in year 2008,2009,2010 with the 5.39%,5.03%,7.28% respectively. And again increase in 2011 with the 9.08% and in 2011 net profit(EAT) increase compare to 2007 and No. equity share are also constant increases 2011 compare to 2007.which shows that whether the financial position and performance of the company has first decrease and then increase.

F . Dividend Per Share[DPS] =Dividend paid to Equity Shareholder's / No. of Equity Share *100

2007 = 4.017/80.34*100 =5

2008 = 8.208/82.08*100 = 10 157

2009 = 10.353/82.82*100 = 12.5

2010 = 12.007/88.94*100 = 13.5

2011 = 13.406/89.24*100 = 15.02

Year 2007 2008 2009 2010 2011

Ratio (%) 5 10 12.5 13.5 15.02

Fluctuation(%)

1 0.25 0.08 0.112593

Fluctuation(%)
1.2 1 0.8 0.6 0.4 0.2 0 2007 2008 2009 2010 2011 0.25 0.08 0.11 Fluctuation(%) 1

158

Interpretation
In this ratio if dividend is constant then it good for the comopany.The above calculation of Dividend per share ratio in 2007 ,5% and it increase in year 2008,2009,2010 with the 10%,12.5%,13.5% respectively. And again increase in 2011 with the 15.02% and dividend per equity share is increase compare and No. equity share are also constant increases 2011 compare to 2007.which shows that whether the financial position and performance of the company has first increase and then decrease

159

Comparison of the company on current ratio.

Year Sun pharma Ranbaxy Dr.Reddys Cipla Lupin Labs

Laboratories Laboratories 2007 2008 2009 2010 2011 6.21 2.63 2.64 2.32 3.39 1.74 1.53 1.42 1.43 2.04 3.21 2.41 2.65 4.13 2.51 2.69 2.68 2.82 2.17 2.26 2.79 2.57 1.71 2.45 2.47

7 6.21 6 5 4.13 4 3.39 3 2 1 0 Sun pharma Ranbaxy Laboratories Dr.Reddys Laboratories Cipla Lupin Labs 2.64 2.63 2.32 3.21 2.65 2.51 2.41 1.74 1.53 1.43 1.42 2.04 2.69 2.82 2.68 2.26 2.17 2.79 2.57 2.45 2.47 1.71 2007 2008 2009 2010 2011

Interpretation
In Current Ratio generally believed that 2:1 ratio shows that a comfortable working capital.The above calculation of current ratio Ranbaxy Laboratories get the 2:1 ratio.so we can say that its a better option to invest in this company 160

Comparison of the company on Return on Shareholders funds:

Year Sun pharma Ranbaxy Dr.Reddys Cipla Lupin Labs

Laboratories Laboratories 2007 2008 2009 2010 2011 25.67 24.1 24.79 15.72 20.71 16.81 24.34 28.11 13.83 22.38 26.72 9.84 10.66 14.30 14.83 20.7 18.72 17.89 18.31 14.54 33.54 33.62 30.32 25.6 25.69

40 35 30 25 20 15 10 5 0 Sun pharma Ranbaxy Laboratories Dr.Reddys Laboratories Cipla Lupin Labs 25.6724.79 24.1 20.71 15.72 16.81 13.83 28.11 24.34 22.38 26.72 20.7 18.7218.31 17.89 14.83 14.3 10.66 9.84 14.54 33.62 33.54 30.32 25.69 25.6 2007 2008 2009 2010 2011

Interpretation
This Ratio shows that profitability of a company to be compare other pharmaceticals company.The above calculation of Return on shareholders fund ratio the Lupin labs is a better option for invest because its ratio is incrases means shareholders funds are also increse. So companies performance is good.

161

Comparison of the company on Net Profit Ratio

Year Sun pharma Ranbaxy Dr.Reddys Cipla Lupin Labs

Laboratories Laboratories 2007 2008 2009 2010 2011 36.62 46.73 47.40 56.39 77.72 11.18 15.87 23.74 13.85 26.2 47.59 17.15 17.3 25.58 22.50 24.38 20.93 19.47 25.60 19.06 18.03 21.77 17.52 22.74 23.17

90 80 70 60 50 56.39 47.4 46.73 47.59 2007 2008 2009 26.2 23.74 15.87 13.85 11.18 25.58 24.38 25.6 22.74 22.5 20.93 21.77 23.17 19.47 19.0618.03 17.52 17.3 17.15 2010 2011 77.72

40 36.62 30 20 10 0 Sun pharma Ranbaxy Dr.Reddys Laboratories Laboratories Cipla Lupin Labs

Interpretation
In This Ratio indicates what portion of sales revenue is left to the proprietors after all opareting expenses are met. Higher this Ratio the better will be the profitability.The above calculation of Net profit ratio sun pharma is a better option because its net profit is continusly increses.so companys performance is good.

162

Comparison of the company on Debt equity ratio

Year Sun pharma Ranbaxy Dr.Reddys Cipla Lupin Labs

Laboratories Laboratories 2007 2008 2009 2010 2011 1.44 1.02 1 1 1 1.35 0.20 1 0.81 2.66 0.075 0.088 0.12 0.095 0.24 0.038 0.15 0.22 0.0009 0.067 0.97 0.73 0.69 0.36 0.31

3 2.5 2 1.5 1 0.5 0 Sun pharma 1.44 1.02 1 1 1 1.35

2.66

2007 2008 1 0.81 0.2 0.24 0.22 0.15 0.067 0.12 0.088 0.075 0.095 0.038 0.0009 Cipla 0.97 0.73 0.69 0.36 0.31 2009 2010 2011

Ranbaxy Dr.Reddys Laboratories Laboratories

Lupin Labs

Interpretation
This ratio is shows that relationship between the outside long-term liabilities and owners funds.A higer ratio means that outside creditors have a larger claim than the owners of the business.if this ratio is lower , it is not profitable from the view point of equity shareholders.The above calculation of Debt Equity ratio cipla limited is better option because it debts is law.and it good for the company. 163

Comparison of the company on Earning par Share ratio

Year Sun pharma Ranbaxy Dr.Reddys Cipla Lupin Labs

Laboratories Laboratories 2007 2008 2009 2010 2011 6.5 9.79 12.33 8.68 13.36 2.12 3.31 4.97 2.72 5.46 13.92 5.63 6.67 10.02 10.56 4.30 4.51 5 6.73 5.98 3.71 5.39 5.03 7.28 9.08

16 14 12 10 8 6 4 2 0 Sun pharma Ranbaxy Dr.Reddys Laboratories Laboratories Cipla Lupin Labs 9.79 8.68 6.5 5.46 4.97 3.31 2.72 2.12 13.36 12.33 13.92

10.56 10.02 6.73 5.98 5 4.51 4.3

9.08 7.28 5.39 5.03 3.71

2007 2008 2009 2010 2011

6.67 5.63

Interpretation
This ratio shows that profitability of the firm from the owners point of view. Higer the ratio its good for the conmpany.The above calculation of Earning per share ratio sun pharma companys ratio is high.Which shows that whether the financial position and performance of the company has increase.

164

Comparison of the company on Dividend par Share ratio

Year Sun pharma Ranbaxy Dr.Reddys Cipla Lupin Labs

Laboratories Laboratories 2007 2008 2009 2010 2011 13.44 21 27.5 27.5 35 17 17 0 0 4 7.5 7.5 12.5 22.5 22.5 10 10 10 10 14 5 10 12.5 13.5 15.02

40 35 35 30 25 20 15 13.44 10 5 00 0 Sun pharma Ranbaxy Dr.Reddys Laboratories Laboratories Cipla Lupin Labs 4 27.5 27.5 21 1717 12.5 7.5 7.5 5 14 10101010 22.5 22.5 15.02 13.5 12.5 10 2007 2008 2009 2010 2011

Interpretation
In this ratio if dividend is constant then it good for the company. The above calculation of Dividend per share ratio sun pharma is a better option because its ratio is continuous increase. which shows that whether the financial position and performance of the sun pharma company has increase.

165

FINDINGS
There are five companies, which are the taken from the pharmaceutical for the project report of fundamental analysis on pharmaceutical sector. The companies taken in this project namely, Sun Pharma Ranbaxy Laboratories Limited Dr. Reddys Laboratories Ltd Cipla Lupin labs

So, all the above companies have been evaluated by the many factors like ratio analysis, EPS& DPS and comparison of all these five companies surviving in the pharmaceutical have been done.

It was quite though to get the idea, because sun pharma. And Ranbexy laboratories. Are so close in particular area of this project of fundamental analysis on pharmaceutical sector. Rest companies are not so decent compare to these two companies in particular areas.

As, the ratio analysis has been done in this project of fundamental analysis on pharmaceutical sector. Sun pharma. is decent from this point of view and its profitability ratios were 47.40%, 56.39%,77.72% respectively. Ranbexy

Laboretarious. Is on second position, And Lupin labs is on third position, while Dr.reddys laboratorys and Cipla Is on fourth and fifth position respectively that can get the easy idea from the tables & charts given in this project. The Sun pharma amd Ranbexy laboratorious. is most favorable company from the investors point of view. The EPS & DPS of these companies are also taken in to consideration of this project. Sun pharma. Is providing decent EPS & DPS and that is 13.36% and 35%.

166

While Dr. reddys laboratorys is also providing decent EPS& DPS with 10.56% and 22.5% respectively. So both companies are close to each other and rest companies are not issuing the decent EPS & DPS as compare to these two companies. So that sun pharma Is favorable for the investor. In Beta for the year 2011 Lupin labs gives a higer return because its beta is highest is 1.52 which is >1 it shows a higher the return and higher the risk. And its Alpha also highest is 2.55 which is >1 it shows a higher return And also correlation is positive so as per the alpha and beta calculation Lupin labs is favorable for the investor.

167

CONCLUSION
There are five companies taken in this project of fundamental analysis on pharmaceutical sector. The companies are sun pharma ltd., cipla ltd. Dr.reddys laboratory ltd., Ranbaxy ltd., Lupin ltd.. These companies are been evaluated by the ratio analysis, EPS & DPS and the companies are also evaluated by Alpha, Beta and correlation of all these companies of pharmaceutical sector. In this ratio analysis and EPS & DPS Sun pharma company are better option than rest of the companies taken in this project of fundamental analysis on pharmaceutical sector. But in Alpha & Beta calculation the Lupin Labs is a better option . Thus, it can easily perceive that Lupin Labs is the most favorable company for the investors. Because it gives a higher return and higher the risk. In other words, Lupin Labs. is only a company in this project of fundamental analysis on pharmaceutical sector.

168

RECOMMENDATION
Pharmaceutical companies have lots of room to grow; so invest in theses Type of industries helps the investors at long time. Buy shares of reputed companies backed by top class management. Do not invest in inactive shares generally it is difficult to in cash them. From the company point of view, the company should allow the investors to take part in board of directors meeting & gives maximum dividend to the shareholders. Do not over pay for growth. Do not invest in unlisted shares. The investors should become cautious while investing for very long time. The investors should analyze the price movement. Economic performance is greatly affected to the performance of the industries of the country, so investors should know economic performance of the country while investing. Before investing in any company, this is required to implement all the data & financial results & also decision himself.

COMPANY:
According to this analysis the Motilal Oswal recommend Lupin Labs as the better option for invest.

169

BIBILIOGRAPHY

Book:
Beri. G.C (2006) Marketing Research Third Edition, New Delhi, Tata McGraw Hill, Page No: 53,54,55,57.

Web site: http://www.kotaksecurities.com/jsp/EquitySearch.jsp http://www.moneycontrol.com/india/stockpricequote/pharmaceuticals/cipla

/C

http://www.moneycontrol.com/india/stockpricequote/pharmaceuticals/sunp
harmaceuticalindustries/SPI

http://www.moneycontrol.com/india/stockpricequote/pharmaceuticals/ranb
axylaboratories/RL

http://www.moneycontrol.com/india/stockpricequote/pharmaceuticals/drre
ddyslaboratories/DRL

http://www.bseindia.com/ http://www.equitymaster.com/result.asp?symbol=LUPL&name=LUPINLTD-Stock-Quote-Chart

http://www.equitymaster.com/result.asp?symbol=RANB&name=RANBA
XY-LAB-Stock-Quote-Chart

http://www.equitymaster.com/result.asp?symbol=SUNP&name=SUNPHARMA-Stock-Quote-Chart

http://www.equitymaster.com/result.asp?symbol=CIPL&name=CIPLAStock-Quote-Chart

http://www.equitymaster.com/result.asp?symbol=REDY&name=DRREDDYS-Stock-Quote-Chart

170

ANNEXUR
SUN PHARMACETICAL INDUSTRY LTD. BELANCE SHEET(in crore)

Particular

March2011

March2010

March2009

March2008

March2007

Sources of funds Owner's fund

Equity capital

share 103.56

103.56

103.56

103.56

96.70

Share application money Preference share capital Reserves surplus Loan funds Secured loans 50.53 & 6576.97

1.37

5614.42

50470.86

4104.06

2351.42

29.49

23.60

22.88

20.39

Unsecured loans

79.64

1047.76

Total

6731.06

5747.47

5175.02

4310.14

3517.64

Uses of funds 171

Fixed assets 1268.76 1159.76 1061.90 935.03 838.70

Gross block

Less : revaluation reserve

Less : accumulated

474.37

419.24

362.64

304.99

249.41

depreciation

Net block Capital work-inprogress Investments

740.52 794.39 92.15 228.06 3951.69 3601.42

699.26

630.04

589.29

75.95

33.43

31.91

2694.59

1843.57

1057.49

Net assets Current

current

assets, 2989.66

1694.04

2743.66

2911.62

2191.88

loans & advances Less : current 882.47 & 730.93 1038.44 1108.52 352.93

liabilities provisions

Total net current 2107.19 assets Miscellaneous expenses written not -

963.11

1705.22

1803.10

1838.95

172

Total

6731.06

5747.47

5175.02

4310.14

3517.64

Notes: Book value of unquoted investments Market value of 266.97 quoted investments Contingent liabilities Number of equity 10355.82 sharesoutstanding (Lacs) 2071.16 2071.16 2071.16 1934.02 175.34 184.22 85.36 72.08 107.62 571.22 150.04 603.19 444.06 3498.78 3580.97 2664.20 1808.96 1022.88

173

PROFIT & LOSS ACCOUNT

Particular March2011 Income Operating income Expenses Material consumed Manufacturing expenses Personnel expenses Selling expenses Adminstrative expenses Expenses capitalised Cost of sales Operating profit Other recurring income Adjusted 1,325.52 1,478.41 798.35 1,049.87 1,249.85 1,330.67 901.30 1,099.84 693.26 638.61 930.84 847.55 1,938.11 1,547.23 1,173.07 1,933.39 1,845.09 2,774.65 2,368.51 1,662.56 March2010 March2009 March2008 March2007

102.21

100.28

94.37

72.57

56.22

214.06

174.71

148.31

120.20

98.87

223.35

196.89

237.07

189.80

143.05

310.04

274.14

275.97

240.17

246.00

1,780.50 152.89

1,593.57

2,693.83

2,169.97

1,717.21

251.52

80.82

198.54

-54.65

174

PBDIT Financial expenses Depreciation Other offs Adjusted PBT write 0.59 0.44 2.77 5.06 8.80

64.23 -

69.47

58.86

56.11

46.27

1,413.59

979.96

1,269.04

1,038.67

583.54

Tax charges

70.22

50.51

30.12

38.16

11.61

Adjusted PAT Non recurring items Other cash adjustments Reported profit Earnigs before appropriation Equity dividend Preference dividend Dividend tax Retained earnings net non

1,343.37

929.45

1,238.92

1,000.51

571.93

40.43

-32.37

26.37

13.53

57.00

1.57

11.70

-0.05

1,383.80

898.65

1,276.99

1,014.04

628.88

3,272.95

2,521.24

2,405.78

1,684.88

1,019.20

362.45

284.79

284.79

217.47

130.01

58.80

0.05

0.08

47.30

48.40

37.20

18.25

2,851.70

2,189.15

2,072.59

1,430.16

870.86

175

RANBAXY LABORATORIES LTD.

BALANCE SHEET(in crore)
March2011 March2010 March2009 March2008 March2007

Particular

Sources of funds Owner's fund

Equity capital

share 210.52

210.21

210.19

186.54

186.34

Share application 6.60 money Preference share capital Reserves surplus Loan funds Secured loans 195.39 & 4915.28

175.85

175.66

1.18

0.88

3748.54

3330.92

2350.68

2162.79

175.83

162.07

365.07

224.29

Unsecured loans

4065.33

3172.55

3563.30

3137.96

2954.31

Total Uses of funds Fixed assets Gross block

9393.11

7482.99

7442.14

6041.42

5528.61

2857.63

2620.92 -

2386.75 -

2261.48 -

2133.57 -

Less : revaluation reserve

176

1145.52 Less: accumulated depreciation Net block 1712.12

1027.52

930.07

791.96

699.54

1593.41 414.92

1456.68 428.77

1469.52 327.42

1434.03 301.88

Capital work-in- 330.18 progress Investments Net assets Current assets, 6965.27 current 3804.44

3833.69

3618.03

3237.55

2679.95

5486.90

6509.97

2922.42

2620.99

loans & advances Less : current 3418.90 & 3845.92 4571.31 1915.49 1508.24

liabilities provisions

3546.37 Total net current assets Miscellaneous expenses written Total Notes: Book value of unquoted investments Market value of 92.67 quoted investments 3698.52 9393.11 not -

1640.97

1938.67

1006.93

1112.76

7482.99

7442.14

6041.42

5528.61

3569.70

3348.65

3106.69

2659.94

380.72

267.93

280.46

14.27

177

Contingent liabilities

276.13

261.05

252.85

201.00

159.40

Number of equity 4210.41 sharesoutstanding (Lacs)

4204.17

4203.70

3730.71

3726.87

178

PROFIT & LOSS ACCOUNT

Particular March2011 Income Operating income Expenses Material consumed Manufacturing expenses Personnel expenses Selling expenses Adminstrative expenses Expenses capitalised Cost of sales Operating profit 2,019.79 1,882.62 1,933.72 1,820.51 1,663.53 5,646.37 4,781.59 4,652.04 4,293.02 4,165.12 March2010 March2009 March2008 March2007

229.43

199.51

203.48

172.95

160.22

608.28

582.50

472.65

420.04

328.45

419.49

370.31

597.47

601.76

540.91

1,106.95

1,095.21

1,193.59

877.79

839.94

4,383.95 1,262.41

4,130.15 651.44

4,400.91 251.13

3,893.06 399.97

3,533.06 632.06

Other recurring income

170.21

98.13

91.28

17.18

30.33

179

Adjusted PBDIT Financial expenses Depreciation Other offs Adjusted PBT Tax charges Adjusted PAT write

1,432.63

749.57

342.41

417.15

662.39

54.19 228.35 1,150.08 415.48 734.60

39.47 148.20 561.90 488.86 73.04

145.83 154.47 42.12 -574.24 616.36

93.43 118.73 204.99 156.69 48.30

58.44 106.75 497.20 62.43 434.77

Non recurring 392.24 items Other cash adjustments Reported profit Earnigs before appropriation Equity dividend Preference dividend Dividend tax Retained earnings net 1,148.73 non 21.88

387.53

-1,678.92

533.95

-58.98

111.42

17.76

35.46

19.34

571.98

-1,044.80

617.72

395.13

895.50

-254.60

-828.53

664.84

451.16

84.21

317.15

316.89

13.99 797.31

-254.60

-828.53

53.90 293.78

44.44 89.82

180

DR. REDDYS LABORATORIES LTD .

BALANCE SHEET(in crore)
Particular March2011 March2010 March2009 March2008 March2007

Sources of funds Owner's fund

Equity capital

share 84.60

84.40

84.20

84.09

83.96

Share application money Preference share capital Reserves surplus Loan funds Secured loans 0.70 & 5935.60

5830.20

5174.90

4727.72

4289.40

0.80

2.60

3.40

1.92

Unsecured loans

1444.10

562.40

637.70

458.91

327.98

Total Uses of funds Fixed assets Gross block

7465.00

6477.80

5899.40

5274.11

4703.26

3025.00

2425.70 -

2157.30 -

1750.21 -

1291.19 -

Less : revaluation reserve

181

Less: accumulated depreciation Net block

1334.00

1110.10

946.50

762.80

609.15

1691.00

1315.60 745.40

1210.80 411.20

987.42 245.71

682.04 280.61

Capital work-in- 570.40 progress Investments Netcurrent assets Current assets, 4563.70 2462.00

2652.70

1865.10

2080.71

966.99

3647.30

3870.40

3348.01

4028.55

loans & advances Less : current 1822.10 & 1883.20 1458.10 1387.74 1254.93

liabilities provisions

Total net current 2741.60 assets Miscellaneous expenses written Total Notes: Book value of unquoted investments Market value of 3.30 quoted investments Contingent liabilities 1526.00 2614.80 7465.00 not -

1764.10

2412.30

1960.27

2773.62

6477.80

5899.40

5274.11

4703.26

2652.40

1864.80

2080.41

966.68

360.10

53.00

1.92

1.20

2016.10

1934.80

1892.55

1896.92

182

Number of equity 1692.53 sharesoutstanding (Lacs)

1688.45

1684.69

1681.73

1679.12

PROFIT & LOSS ACCOUNT

Particular March2011 Income Operating income Expenses Material consumed Manufacturing expenses Personnel expenses Selling expenses Adminstrative expenses Expenses capitalised Cost of sales Operating profit 1,670.50 1,482.10 1,469.90 1,253.46 1,121.59 5,188.50 4,395.60 3,999.50 3,343.89 3,783.26 March2010 March2009 March2008 March2007

274.10

221.40

195.90

207.46

213.46

702.70

516.40

412.50

366.28

299.04

477.00

443.80

448.70

375.37

323.40

844.70

643.40

714.50

558.60

498.42

3,969.00 1,219.50

3,307.10 1,088.50

3,241.50 758.00

2,761.19 582.70

2,455.91 1,327.35

183

Other recurring income 115.50 181.30 249.70 156.64 272.74

Adjusted PBDIT Financial expenses Depreciation Other offs Adjusted PBT Tax charges Adjusted PAT Non recurring items Other cash adjustments Reported profit Earnigs before appropriation Equity dividend Preference dividend Dividend tax Retained earnings net non write

1,335.00

1,269.80

1,007.70

739.35

1,600.08

9.90 247.90 26.80 1,050.40 158.50 891.90 1.50

16.00 222.40 19.30 1,012.10 238.70 773.40 72.70

27.40 193.60 19.70 767.00 168.60 598.40 -37.50

14.69 161.99 20.71 541.96 108.88 433.08 40.65

51.96 133.50 18.16 1,396.47 188.99 1,207.48 -38.79

-0.40

-0.10

-0.10

-0.06

-0.02

893.00

846.00

560.80

473.67

1,168.66

4,044.30

2,860.30

2,218.30

1,778.80

1,496.49

190.40

190.00

105.30

63.06

62.97

115.20 3,738.70

31.60 2,638.70

17.80 2,095.20

10.72 1,705.02

10.70 1,422.82

184

CIPLA LTD.

BALANCE SHEET(in crore)

Particular

March2011

March2010

March2009

March2008

March2007

Sources of funds Owner's fund

Equity capital

share 160.58

160.58

155.46

155.46

155.46

Share application money Preference share capital Reserves surplus Loan funds Secured loans 2.95 & 6443.40

5744.54

4186.32

3591.39

3071.84

0.41

2.79

16.98

7.25

Unsecured loans

438.44

4.66

937.45

563.55

116.31

Total Uses of funds Fixed assets Gross block

7045.37

5910.19

5282.02

4327.38

3350.86

3929.00

2895.44

2693.29

2201.79

1799.71 185

Less : revaluation 8.97 reserve Less: accumulated depreciation Net block 2859.05 1060.98

8.97

8.97

8.97

8.97

884.27

700.80

540.43

411.64

2002.20 684.24

1983.52 366.32

1652.39 233.12

1379.10 73.19

Capital work-in- 253.07 progress Investments Net assets Current assets, 6022.56 current 570.28

265.10

81.32

94.75

117.80

5483.42

4419.57

3743.98

2834.68

loans & advances Less : current 2659.59 & 2524.77 1568.71 1396.86 1053.91

liabilities provisions

Total net current 3362.97 assets Miscellaneous expenses written Total Notes: Book value of unquoted investments Market value of quoted investments 570.28 7045.37 not -

2958.65

2850.86

2347.12

1780.77

5910.19

5282.02

4327.38

3350.86

265.10

81.32

94.75

117.80

186

Contingent liabilities

478.26

423.87

730.75

1664.58

1586.64

Number of equity 8029.21 sharesoutstanding (Lacs)

8029.21

7772.91

7772.91

7772.91

187

PROFIT & LOSS ACCOUNT

Particular March2011 Income Operating income Expenses Material consumed Manufacturing expenses Personnel expenses Selling expenses Adminstrative expenses Expenses capitalised Cost of sales Operating profit Other recurring income 90.67 94.21 90.05 64.91 65.78 2,960.16 2,503.45 2,399.56 2,121.11 1,785.62 6,319.35 5,605.69 5,234.29 4,203.29 3,561.99 March2010 March2009 March2008 March2007

434.50

351.82

354.36

330.80

273.18

464.20

318.87

271.33

255.45

184.59

385.53

326.48

375.59

284.63

226.08

793.64

724.14

588.61

359.13

270.69

5,038.03 1,281.32

4,224.76 1,380.93

3,989.45 1,244.84

3,351.12 852.17

2,740.16 821.83

Adjusted PBDIT

1,371.99

1,475.14

1,334.89

917.08

887.61

188

Financial expenses Depreciation Other offs Adjusted PBT Tax charges Adjusted PAT write

10.87 228.86 1,132.26 191.00 941.26

28.30 165.25 1,281.59 243.50 1,038.09

52.23 151.79 1,130.87 124.50 1,006.37

18.05 130.68 768.35 136.93 631.42

11.16 103.37 773.08 139.95 633.13

Non recurring 19.13 items Other cash adjustments Reported profit Earnigs before appropriation Equity dividend Preference dividend Dividend tax Retained earnings net 960.39 non -

31.50

-229.56

70.01

34.90

11.90

1,081.49

776.81

701.43

668.03

2,659.46

2,036.32

1,286.71

1,091.78

972.23

224.81

160.58

155.46

155.46

155.46

36.72 2,397.93

26.67 1,849.07

26.42 1,104.83

26.42 909.90

26.42 790.35

189

LUPIN LABS.

BALANCE SHEET(in crore)

Particular

March2011

March2010

March2009

March2008

March2007

Sources of funds Owner's fund

Equity capital

share 89.24

88.94

82.82

82.08

80.34

Share application money Preference share capital Reserves surplus Loan funds Secured loans 637.46 & 3063.42

2441.61

1292.48

1234.97

808.07

704.00

565.12

560.88

390.91

Unsecured loans

345.83

202.81

379.79

404.67

473.64

Total Uses of funds Fixed assets Gross block

4135.95

3437.36

2320.21

2282.60

1752.96

1884.34

1616.52

1331.37

1155.05

951.71 190

Less : revaluation reserve Less: accumulated depreciation Net block 1354.63 529.71

425.13

355.75

291.98

237.90

1191.39 140.83

975.62 116.31

863.07 68.95

713.81 82.55

Capital work-in- 482.90 progress Investments Net assets Current assets, 2717.34 current 680.88

724.07

473.87

292.49

5.86

2333.50

1820.38

1733.65

1482.10

loans & advances Less : current 1099.80 & 952.43 1065.97 675.56 531.36

liabilities provisions

Total net current 1617.54 assets Miscellaneous expenses written Total Notes: Book value of unquoted investments Market value of quoted investments 680.88 4135.95 not -

1381.07

754.41

1058.09

950.74

3437.36

2320.21

2282.60

1752.96

724.07

473.87

290.38

3.75

191

Contingent liabilities

197.10

113.70

114.41

72.47

89.34

Number of equity 4462.01 sharesoutstanding (Lacs)

889.44

828.20

820.81

803.45

192

PROFIT & LOSS ACCOUNT

Particular March2011 Income Operating income Expenses Material consumed Manufacturing expenses Personnel expenses Selling expenses Adminstrative expenses Expenses capitalised Cost of sales Operating profit Other recurring income 2.96 13.73 3.74 144.47 42.32 1,920.67 1,598.75 1,326.16 1,162.08 961.52 4,487.36 3,690.09 2,954.70 2,575.39 1,985.79 March2010 March2009 March2008 March2007

296.18

256.83

226.56

192.19

153.63

491.23

376.55

334.47

241.82

187.50

416.74

358.97

294.17

243.21

191.69

371.57

257.88

199.22

194.78

157.89

3,496.39 990.97

2,848.98 841.11

2,380.58 574.12

2,034.08 541.31

1,652.23 333.56

Adjusted PBDIT

993.93

854.84

577.86

685.78

375.88

193

Financial expenses Depreciation Other offs Adjusted PBT Tax charges Adjusted PAT write

51.49 104.28 838.16 35.65 802.51

36.76 81.57 736.51 59.73 676.78

49.99 66.35 461.52 54.41 407.11

42.15 56.11 587.52 114.26 473.26

41.70 46.37 287.81 94.69 193.12

Non recurring 7.36 items Other cash adjustments Reported profit Earnigs before appropriation Equity dividend Preference dividend Dividend tax Retained earnings net 809.98 non 0.11

-27.85

9.45

-29.90

103.97

-1.08

0.40

-0.56

0.89

647.85

416.96

442.80

297.98

1,770.60

1,284.70

907.97

736.13

489.33

134.06

120.07

103.53

82.08

40.17

21.75 1,614.79

20.12 1,144.51

17.59 786.85

14.04 640.01

6.83 442.33

194