er presentation

8/7/2019 Er Presentation

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Presented by :-

Mohit Kesharwani Sumit Paul

Trivesh Tripath Divyank Gupta

Vibhor Bajpai Ankit TiwariRavi Verma


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Introduction

The Indian pharmaceutical sector continues to demonstratestrong growth despite the global economic slowdown, dueto inherent strength of the Indian domestic market,economic growth, healthcare infrastructure expansion,

rising incidence of chronic diseases and increase inhealthcare access in the extra urban and rural markets.

The potential of the Indian pharmaceutical market isrecognized by most of the major players, which is

manifested in diverse strategies being adopted by variousorganizations. Such strategies include sales force andgeographical expansion and new products launches, etc. Inorder to gain market penetration, companies are increasingtheir reach into the extra-urban and rural markets as well.


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The Global pharmaceuticals market sales grew by

approximately 5.7%, to reach US$ 727 Bn in 2009 Developed Markets grew by 4% during the year. The

'Pharmerging' markets (Brazil, Russia, India, China, Turkey,Mexico and South Korea) continued to strengthen theirposition in the global landscape and grew by 17% in 2009.

Global pharmaceutical market is projected to grow at a(CAGR) of 4-7% for the 2008-2013 period.

Forecasted CAGR for the Developed Market rangesbetween 2-5%, while the Pharmerging markets areexpected to have a CAGR between 13-16%, for the same

period. The Indian pharmaceutical industry is the world's second-

largest by volume. Bio-tech industry clocked a 17 percentgrowth with revenues of Rs.137 billion ($3 billion) in the2009-10 financial year over the previous fiscal.


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Indias first pharmaceutical company are

Bengal Chemicals and Pharmaceutical Works,

which still exists today as one of 5

government-owned drug manufacturers,

appeared in Calcutta in 1930


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It was founded 13th November 1924 in India under the name of H.J.Foster& Co. Limited as an Agency House for distributing Baby Food Glaxo, JosephNathan & Co. In 1950, It changed its name to Glaxo Laboratories

Companys headquartered is in London, United Kingdom.

It is the world's third largest pharmaceutical company measured byrevenues (after Johnson & Johnson and Pfizer)

Globally, we are a USD 45 billion, leading, research-based healthcare andpharmaceutical company. In India, we are one of the market leaders witha turnover of Rs. 1860 crore and a share of 5.2 per cent*.

Our mission is to improve the quality of life by enabling people to do

more, feel better and live longer The GSK India product portfolio includes anti-infectives, dermatology,gynaecology, diabetes, oncology, cardiovascular disease and respiratorydiseases.

GSK also offers a range of vaccines, for the prevention of hepatitis A,hepatitis B, invasive disease caused by H, influenzae, chickenpox,diphtheria, pertussis, tetanus, rotavirus, cervical cancer and others.


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In 1982 Glaxo Group Ltd., U.K., disinvested28,00,000 equity shares in the Company.

56,00,000 No. of Equity shares issued (prem. Rs.

5 per share) in Jan. 1983, 18,00,000 shares wereoffered as right (Except to Glaxo Group Ltd. U.K.)in 1:2, 2,50,000 shares reserved for businessassociated of the company and 35,50,000 shares

offered to the public. Pref. capital was repaid on 12.4.1983.


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Shareholding pattern - GlaxoSmithKline Pharmaceuticals Ltd.

Holder's Name No of Shares % Share Holding

Directors 2395 0.00%

ForeignPromoter 42917488 50.67%

ForeignInstitutions 13201150 15.59%

GeneralPublic 12745478 15.05%

FinancialInstitutions 10544533 12.45%

NBanksMutualFunds 3264044 3.85%

OtherCompanies 1602037 1.89%

ForeignNRI 219890 0.26%

Others 205708 0.24%

ForeignOcb 294 0.00%


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GLAXO VALUATION

Through DCF Technique

Market returns (Rm)

Risk free rate (Rf) (4.5%) Beta (.07)

Cost of equity Ke (6.59%)

Cost of debt, Kd (.1164%) Tax Rate (33%)


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Cost of capital (Ko)

The cost of capital is an expected return that

the provider of capital plans to earn on their

investment. Ko = 6.59%

Return on equity ROEROE shows how well a company uses

investment funds to generate earnings

growth. ROE= 0.3031


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GLAXOPHARMA- Comparative

Analysis

Today 1 Month 3 Months 1 Year 3 Years

Gsk 0.14% 5.53% 11.34% 30.61% 116.35%Sensex 1.38% 6.54% 3.77% 13.49% 2.11%

NIFTY 1.57% 6.66% 3.85% 14.07% 1.73%


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Charts


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Technical Chart


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Market Cap (GBP m): 64,938.75

EPS: 109.1

PE Ratio: 11.46 Dividend Cover: 1.79

Dividend Yield: 4.88

Price to Sales: 2.29


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NSE


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BSE


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Weekly H/L 2,205.00 / 2,085.00

Monthly H/L 2,341.00 / 1,905.00

52Weeks H/L 2,391.00 / 1,490.10

(in Cr.) Sep-10 Jun-10 FY09

Revenue 589.27 507.51 1,891.09

Net Profit 157.81 128.99 512.29

EPS 18.60 15.20 60.50

Cash EPS 19.12 15.71 62.42

OPM % 36.65 37.68 36.64

NPM % 26.78 25.42 27.09


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Performance Chart


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Index Comparison


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Price Movement


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Comparison


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