Ranbaxy Ltd.
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Transcript of Ranbaxy Ltd.
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An
Assignment OnSecurity Analysis
Of Ranbaxy ltd.
Submitted To:
Rehman Sir
Subm itted By:
H etika P atel
Roll No: 16
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Index
2
No Topics Pageno
1 INTRODUCTION
1.1 COMPANY PROFILE
1.2 INDUSTRY HISTORY3
7
2 MANAGEMENT
2.1 CUREENT MANAGEMENT
2.2 SHARE HOLDER PATTERN
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9
3 IPO & FPO 9
4 LIVE PROJECT 12
5 CONCLUSION 16
6 FUTURE FORECASTING 17
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History of Company
The company manufacture and markets, generic
pharmaceuticals, value added generic pharmaceuticals,
branded generics, active Pharmaceuticals (API) and
intermediates by using finest R&D and Manufacturing
facilities, which was named as Ranbaxy Laboratories Limited
(RLL), had its origins in the early 1960s when Ranjit Singh
and Gurbux Singh, two employees of a Japanese
pharmaceutical company operating in India, formed their own
pharmaceutical preparations company in Amritsar, in Punjab
state. Two of them merged their names to form the name for
their company as Ranbaxy. The company was incorporated in
the year 1961 and linked up with a European pharmaceutical
company, began production in 1962. Ranbaxy's owners
sought additional financing and turned to a local
moneylender, Bhai Mohan Singh, by 1966 the lender came to
collect, the Ranbaxy partners offered to turn over their
company to him instead. After that pathetic situation, Singh
agreed to the deal and launched the Ranbaxy family on the
path toward building one of India's largest business empires.
Under Bhai Mohan Singh, Ranbaxy initially maintained its
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course of preparing and packing existing branded
pharmaceutical products for the Indian market. The entry of
Singh's eldest son, Parvinder, into the company in 1967,
however, set the company on a new course to become a fully
independent pharmaceutical company. The Company ranked
amongst the top ten global generic companies and has a
presence in 23 of the top 25-pharma markets of the world.
The Company with a global footprint in 49 countries, world-
class manufacturing facilities in 11 and a diverse product
portfolio, is rapidly moving towards global leadership, riding
on its success in the world's emerging and developed
markets. Ranbaxy's diverse product basket of over 5,000
SKUs available in over 125 countries worldwide encompasses
a wide therapeutic mix covering a majority of the chronic and
acute segments. Ranbaxy is among the few Indian
pharmaceutical companies in India to have initiated its
research program in the late 1970's. Ranbaxy's good fortune
came in 1970, when the Indian government passed
legislation that effectively ended patent protection in the
pharmaceutical industry. The company expanded quickly,
and by 1973, Ranbaxy opened a new factory, in Mohali, for
the production of active principal ingredients (APIs) and the
company went to public in the same year 1973. To support
its global ambition, a first of its kind world class R&D centre
was commissioned in the year 1994, which has enabled the
company to begin to enter the new chemical entities (NCE)
and novel drug delivery systems (NDDS) markets. In 1977
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the company begins production in Lagos, Nigeria through a
joint venture and in 1983 opens a dosage plant in Dewas.
The company builds a state-of-the-art API facility in Toansa in
preparation for entry into the U.S. market during the period
of 1987. The company's joint marketing agreement was
made with Eli Lilly in 1992. A joint venture was launched in
China; a new research-driven NCE and NDDS strategy was
came to effect on 1993. During 2004-05 the company opens
a new research and development facility in Gurgaon, India,
the company acquires Ohm Laboratories in the United States
and builds a new FDA-approved production facility. Ranbaxy's
own branded drugs were pierced into market in United States
and the company got underway-clinical trials on the first in-
house developed molecule in the year 1998. Ranbaxy is
focused on increasing the momentum in the generics
business in its key markets through organic and inorganic
growth routes. It continues to evaluate acquisition
opportunities in India, emerging and developed markets to
accentuate its business and competitiveness. RLL acquired
Basics, Bayer's generics business in Germany during the
period 2000. The company opened a new manufacturing
plant in Vietnam on 2001 and again company acquired RPG
(Aventis) in France, becoming the leading generics
manufacturer for that market in 2003, it sought new
alliances, the company reached a global drug discovery and
development partnership with GlaxoSmithKline in the same
year. Due to the high demand and expanding nature, the
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company launched a new production facility in Brazil in 2005
worth of $100 million. In 2006 the company established a
wholly owned subsidiary in Sweden under the name of
Ranbaxy Pharma AB for manage the operations in the
territories of Sweden, Norway, Denmark & Finland and the
company has formed a Joint venture in South Africa under
the name of Sonke Pharmaceuticals (proprietary) Ltd. RLL
acquired Terapia SA (Romania), Ethimed (Belgium), Allen
(Italy), Mundogen (Spain) and Sentek PLC's Proprietary
Technology and also the company has entered into an
agreement for acquisition on 100% Equity stake in Bio-Tabs
Pharmaceuticals (Proprietary) Ltd (SA) during the period of
2007. In January 2008, RLL entered into the Chyawanprash
segment, launched its sugar-free product under the Brand
name Chyawan Active'. The product marketed by Ranbaxy's
Global Consumer Healthcare division, will be initially
introduced in North India (Delhi, UP, Punjab and Bihar) and
later in other parts of the country. In February of the year the
company made De-merger of the Company's New Drug
Discovery Research (NDDR) Unit into a subsidiary, Ranbaxy
Life Science Research Ltd. (RLSRL). As on April 2008 the
Company has received final approval from the U.S. Food and
Drug Administration to manufacture and market Cetirizine
Hydrochloride Oral Solution (Allergy) and Children's Cetirizine
Hydrochloride Oral Solution (Hives-Relief), 1 mg/ml (OTC),
Ranbaxy Laboratories Limited (Ranbaxy) and Orchid
Chemicals & Pharmaceuticals Limited (Orchid) entered into a
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business alliance agreement involving multiple geographies
and therapies for both finished dosage formulations and
active pharmaceutical ingredients. During the same month of
the year, the company has pierced into a collaborative
research agreement with the Department of Biotechnology
(DBT), New Delhi, in the area of New Drug Discovery
Research (NDDR). The research will be conducted under the
aegis of DBT's major initiative in the area of tuberculosis. The
Company has received authorization from Ministry of Health
and Labour Welfare (MHLW-Japan) for marketing the generic
version of Amlodipine tablets 2.5mg & 5mg and launched
BONISTA- Teriparatide injection (recombinant human
parathyroid hormone) for the treatment of Osteoporosis, in
collaboration with Virchow Biotech Pvt Ltd, Hyderabad, India.
Ranbaxy is the first company to launch this bio-generic
product in the world. The Company is serving its customers in
over 125 countries and has an expanding international
portfolio of affiliates, joint ventures and alliances, ground
operations in 49 countries and manufacturing operations in
11 countries. RLL working towards achieve excellence and
set new global benchmarks. Driven by its vision to become a
global leader the Company reinvents itself to achieve
sustained growth and leadership in Research-based
International Pharmaceutical.
RPG Enterprises
GlaxoSmithKline Consumer Healthcare Ltd.
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C
o
m
p
etit
o
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East India Pharmaceutical Works Ltd.
Dr. Reddy's Laboratories Ltd.
Cipla Ltd.
Concept Pharmaceuticals Ltd.
Khandelwal Laboratories Ltd.
Dabur India Ltd.
Company profile
Company Head Office / Quarters:A-11 Industrial Area Phase-III,Sahibzada Ajit Singh Nagar,
Mohali,Punjab-160055Phone : 91-172-2271450Fax : 91-172-2226925E-mail : [email protected] : http://www.ranbaxy.com
Registrars:Alankit Assignments Limited
2E/8Blazeflash HouseJhandewalan ExtnNew Delhi - 110055
PositionOn Tuesday September 16, 2008 the US Food and DrugAdministration (FDA) issued two "Warning Letters" to Ranbaxy
Laboratories Ltd, and simultaneously established an "ImportAlert" for drugs manufactured at or using materials from twoRanbaxy facilities in India at either Dewas or Paonta Sahib. Thismeans that any finished product and any active pharmaceuticalingredient manufactured at these sites that are offered forimport into the United States will be detained at the border.
The reason for these actions are problems at the Ranbaxyfacilities related to the firms drug manufacturing processes,
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where significant deviations from Good Manufacturing Practices(GMP) have been documented in the manufacture and controlof both finished products and active pharmaceutical ingredientsduring FDA inspections in early 2008.
These deficiencies form the basis of the FDA Warning Lettersand because of the extent and nature the GMP violations theImport Alert has been issued.
FinancialsRanbaxy was incorporated in 1961 and went public in 1973. Forthe year 2009, the Company recorded Global Sales of US $1519 Mn. The Company has a balanced mix of revenues fromemerging and developed markets that contribute 54% and 39%respectively. In 2009, North America, the Company's largestmarket contributed sales of US $ 397 Mn, followed by Europegarnering US $ 269 Mn and Asia clocking sales of around US $441 Mn.
Management
Board of Directors
Dr. Tsutomu UneDr. Anthony H. Wild
Mr. Akihiro WatanabeMr. Percy K. ShroffMr. Rajesh V. Shah
Chairman: Mr. Takashi Shoda
CEO & Managing Director:Mr. Atul Sobti
Company Secretary:Mr. S. K. Patawari
Bankers:SBIICICICity bankPunjab National BankStandard Chartered Bank
Listed in NSE RANBAXY
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Listed in BSE 500359
Share holding pattern
Particulars
No. of
Shares(Mn)
%
Holdings
Total Promoter Holdings 268.7163.9
Total Govt Holding (Promoter + Non Promoter) 0.000.0
Total Domestic Institutions (Banks/ FI + MF /
UTI)
50.8712.1
Total Foreign Holdings (FII+NRI holdings) 38.359.1
Total Non Promoter Corporate Holdings 13.393.2
Total Public & Others (Individuals + HUF +
Clearing members)
49.4411.8
Total 420.75100
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IPO
SRL RANBAXY | Super Religare Labs ( laboratories ) is planning to
launch an IPO ( Initial Public Offering ) this fiscal . SRL Ranbaxy is owned by Malvinder Singh and Shivinder Singh, the
former promoters of Ranbaxy.
SRL Ranbaxy runs diagnostic labs all over the country. The companyplans to raise Rs. 200 Crores through IPO.
Company is valued at Rs.1000 Crores. IPO Date and Price is yet to beannounced.
Other diagnostic chains are Dr Lal Pathlabs, Metropolis and PiramalDiagnostics. US major Quest Diagnostics has also started operations in
the country. The industry is attracting investment from PE firms. SequoiaCapital and ICICI Ventutre have invested in Dr Lal Pathlabs andMetropolis, respectively.
SRL Ranbaxy has over 40 laboratories and 1,000 collection centresacross 450 towns and cities.
AnalysisMonthly Share Prices
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FPO The follow-on public offer (FPO) of state-owned Shipping Corporation of
India (SCI), which aims to raise Rs 1,300 crore, would come out onNovember 30.
According to the prospectus filed with market regulator the Securities andExchange Board of India (Sebi), the issue would close on December 2 forinstitutional investors and December 3 for retail investors, among others.
Last month, the government had approved selling its 10 per cent stake inSCI and allowed it to raise 10 per cent fresh equity.
The issue comprises of a fresh issue of 42.35 million shares and an offer forsale of another 42.35 million shares.
Post the stake-sale, the government's holding in the company will comedown to 63.75 per cent from the 80.12 per cent currently. The stake-sale
proceeds will be used to buy new vessels.
The company has drawn up a capex plan of $1 billion per annum for thenext three years. It has a strong balance sheet with Rs 2,400 crore cash anda debt-equity ratio of 0.45 and a current ratio of 2.97.
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Year High(Rs.) Low(Rs.) Close(Rs.) P/E High P/E Low P/E Close Mkt Cap.
(Rs. in Cr.)
Nov-10 624.90 530.50 571.45 50.39 38.98 43.12 24,060.33
Oct-10 620.55 560.00 579.75 48.63 41.56 43.75 24,409.79
Sep-10 579.90 490.00 557.15 44.73 36.37 42.01 23,441.53
Aug-10 500.60 434.55 490.25 39.06 32.10 36.97 20,626.78
Jul-10 467.95 441.10 449.30 35.81 33.19 33.88 18,903.85
Jun-10 463.00 414.35 460.60 35.32 31.13 34.73 18,639.44
May-10 469.50 364.20 429.85 36.27 22.72 32.41 18,082.07
Apr-10 485.00 432.70 443.10 37.28 32.50 33.41 18,639.44
Mar-10 491.60 450.00 474.90 38.50 33.21 35.79 19,970.49
Feb-10 476.00 395.10 467.05 36.56 29.06 35.20 19,640.39
Jan-10 533.50 432.35 453.15 42.11 32.04 34.15 19,055.86
P/E ratio increases constantly so it is good for
company.
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It shows good profitability of the company.
EPSCurrent year EPS is 13.61
Bonus
Dividend
Year End Dividend Per Share Dividend(%) Remark
21-May-08 6 120 Final
01-Nov-07 2.5 50 Interim
04-Apr-07 6 120 Interim2
02-Nov-06 2.5 50 Interim
15-Jun-06 0 120 Final
Live Project
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Date Ratio
01-Oct-02 3:5
01-Dec-98 1:1
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In above tables and graph we can see the
fluctuation in the price of the share and volume ofthe share.
As per available information we see that on 22nd
November 2010 closing price of share is 570.7 and
volume is 546.
Here in this script the price of Ranbaxy ltd. share
was decrease continuously in the given week, but
the volume is going high continuously. According to me volume is going high because
long term investor are starting to invest when price
decrease then sell it after long time period with
high rate of return.
TECHNICAL ANALYSIS
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Date Open High Low Close Total No of Trades Turnover
in(Rs.in Lakh)Price Price Price Price Volume
22-Nov-10 560.5 575.4 558.3 571.7 686,778 18,042 9,395.23
23-Nov-10 568 579.4 561.4 570.7 1,645,762 32,600 9,395.23
24-Nov-10 572 578.5 557.2 561 1,370,255 30,459 7,805.56
25-Nov-10 563 567 544.4 547.8 2,560,430 45,640 14,124.24
26-Nov-10 553 553 530.1 546 901,257 24,020 4,898.55
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Moving average analysis
DATECLS
PRICE SUM OF 5 DAY MOVING AVG
15-Nov-10 565.35
16-Nov-10 568.45
18-Nov-10 572.6
19-Nov-10 556.55
22-Nov-10 571.7 2834.65 566.3
23-Nov-10 570.65 2839.95 567.99
24-Nov-10 561 2832.5 566.5
25-Nov-10 547.8 2807.7 561.54
26-Nov-10 545.95 2797.1 559.42
A variation of the moving average is the moving average
convergence divergence, or MACD. It involves comparing a
short term moving average, here in above table 10 days
moving average is derived, if the short term moving average
is consistently higher then the long term moving average, it
is a bullish signal; if the short term moving average is
consistently lower than the long term moving average, and it
is bearish signal.
Here in this case the short term moving average of Ranbaxy
Ltd was consistently go down from 566.3 to 559.42. And as
per the technical analysis we can say that there is a bearish
signal for long term moving average.
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Niftymovement
related to
script
16
For selected
period)
NSE
High 579.40
Low 530.05
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Share of Ranbaxy limited was consistently decreased in
above week.
Script of Ranbaxy industries was 570.7 on first day of
week and consistently decreases during week, and on the
last day of the week reach at 546.
And as per table we see below, that the nifty was also go
down consistently.
Conclusion
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Ranbaxy Ltd is an India-based company. The company is
India's private sector company on all major financial
parameters.
The company manufacture and markets, generic
pharmaceuticals, value added generic pharmaceuticals,
branded generics, active Pharmaceuticals (API) and
intermediates by using finest R&D and Manufacturing
facilities.
The share price of Ranbaxy ltd was decrease constantly in
given week.
In this particular week the nifty is also decrease
continuously.
EPS of Ranbaxy ltd was increased in 2010.
Price of Ranbaxy share was decrease in some last week
then also volume is increased of particular script because
long term investor invest in script when price decrease.
As per available information we see that on 22nd
November 2010 closing price of share is 571.7 and
volume is 546.
PAT is also increase and expected to increase in future.
As per analysis it is risky to invest in Ranbaxy ltd. for short
time.
ROE (return on equity) decrease in year 2010 in compare
to 2009.
Last bonus given in 2002 and 1998 respectively.
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Forecast for December end
Ranbaxy ltd.
As per analysis and findings, According to me Script
price was around Rs.580 at the end of December.
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Date Ratio
01-Oct-02 3:5
01-Dec-98 1:1