stock valuation of square pharmaceuticals
TRANSCRIPT
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8/18/2019 Stock valuation of Square Pharmaceuticals
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SQUARE Pharmaceuticals Limited
2.4 Company profile at a glance
SQUARE today symbolizes a name – a state of mind. But its journey to the growth
and prosperity has been no bed of roses. rom the in!eption in "#$%& it has today burgeoned
into one of the top line !onglomerates in Bangladesh. S'uare (harma!euti!als )td.& the
flagship !ompany& is holding the strong leadership position in the pharma!euti!al industry of
Bangladesh sin!e "#%$ and is now on its way to be!oming a high performan!e global player.
SQUARE (harma!euti!als )imited is the largest pharma!euti!al !ompany in Bangladesh and
it has been !ontinuously in the "st position among all national and multinational !ompaniessin!e "#%$. *t was established in "#$% and !on+erted into a publi! limited !ompany in "##".
,he sales turno+er of S() was more than ,a-a ""./ Billion 0US1 "/2.3" million4 with about
"/.25 mar-et share 0April 677#– 8ar!h 67"74 ha+ing a growth rate of about "/.365.
Looking beyond the horizon
SQUARE (harma!euti!als )imited has e9tended its range of ser+i!es towards the highway of
global mar-et. *t pioneered e9ports of medi!ines from Bangladesh in "#%3 and has been
e9porting antibioti!s and other pharma!euti!al produ!ts. ,his e9tension in business and
ser+i!es has manifested the !redibility of S'uare (harma!euti!als )imited.
Mission
:ur 8ission is to produ!e and pro+ide 'uality ; inno+ati+e health!are relief for people&
maintain stringently ethi!al standard in business operation also ensuring benefit to the
shareholders& sta-eholders and the so!iety at large.
Vision
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)ast fi+e years share pri!e and di+idend of s'uare (harma!euti!als )imited
=ear A8( 0,-.4 >i+idend
67"7 "6.27 2.$
67"" "2#.23 2
67"6 "2/."" 6.$
67"2 "$3.6 6.$
67" 6$#.7$ 2
Average Rate o Return o SQUARE last ive years
At first we ha+e to !al!ulate the rate of return for ea!h year. ?ow to !al!ulate the rate of
return we ha+e to !al!ulate the di+idend yields in per!entage and the !apital gain@loss in
per!entage whi!h are shown below in ,able below
Rate o Return
,he rate of return on a share !onsists of its di+idend yield and the !apital gain in per!entage.,hus the rate of return of a share held for one year is gi+en by
Rate of Return >i+idend yield in one year 054 C Dapital ain in :ne =ear 054
=ear A8( 0,F4 >i+idend >i+idend
=ield
Dapital ain Rate of Return
67"7 "6.27 2.$6.%6 5 G G
67"" "2#.23 26."$ 5 "6."6 5 ".63 5
67"6 "2/."" 6.$".% 5 G 6.2 5 G 7.$7 5
67"2 "$3.6 6.$
".$# 5 "$.// 5 "3.6$ 5
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67" 6$#.7$ 2"."/ 5 /.$/ 5 /$.36 5
,hus the a+erage rate of return is gi+en by
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S!"# A$AL%S&S
Strengths
". Highly e9perien!ed senior e9e!uti+es.6. ood reputation with high image.2. ood growth rate.. Staff members.$. )ess employee turno+er.
!eaknesses
". ?onGa+ailability of high te!hnology.6. E+erything is not organized.
2. ,ime !onsuming de!ision ma-ing pro!ess.. )a!- of asset management and debt.$. 8inimum profit.
"''ortunities
". o+ernment support.6. Relationship with the finan!ers.2. Relationship with suppliers.
. Relationship with shareholders and publi!.$. >ifferent arena of produ!ts.
#hreats
". ,hreat of new produ!t entrants.6. *ndustry Ri+alry.2. Bargaining (ower of Suppliers.. Bargaining (ower of Buyers.$. ,hreat of Substitutes.