Valuation of the Indian Pharmaceutical Industry
EXECUTIVE SUMMARY
Global Pharma Industry is likely to grow at a CAGR of 5% to US $ 1 Trillion by 2013
The Pharmaceuticals Industry in India is the world’s 3 largest in terms of volume and stands 14th in terms of sale.
Domestic pharma sector benefitted from increased thrust on Rural Health through bigger budgetary allocations in the Budget of 2009-10
According to PWC in 2010, India joined the league of Top 10 global pharmaceutical markets in terms of sales by 2020 with value reaching US$ 50 Billion.
This research work analyses the pharma industry, its trends and the future outlook. This paper attempts to identify the prominent players and help people make investment decisions i.e. BuyHold-Sell.
In order to achieve this objective a detailed financial statement analyses of the prominent players has been done. Also, in order to find the undervalued pharma stocks Discounted Cash Flow
Analyses (DCF) has been done of the 10 companies
CHAPTER 1: ECONOMIC ANALYSIS
The economy of India is the eleventh largest economy in the world by nominal GDP and the fourth largest by purchasing power parity (PPP). Following strong economic reforms from the socialist inspired economy of a post independence Indian nation, the country began to develop a fast-paced economic growth, as free market principles were initiated in 1990 for international competition and foreign investment. India is an emerging economic power with very large pool of human and natural resource, and growing large pool of professionals. Economists predict that by 2020, India will be among the leading economies of the world
GROSS DOMESTIC PRODCT (GDP)
The Indian economy grew at an annual rate of 7.45% in the last reported quarter. From 2004 until 2011, India’s average quarterly GDP growth was 8.23% reaching a historical high of
10.10% in September 2006 and a record low of 5.50% in December 2004.
The economy is expected to grow at 7% in 2012
INFLATION IN INDIA
Global Pharma Industry is likely to grow at a CAGR of 5% to US $ 1 Trillion by 2013
The Pharmaceuticals Industry in India is the world’s 3 largest in terms of volume and stands 14th in terms of sale.
Domestic pharma sector benefitted from increased thrust on Rural Health through bigger budgetary allocations in the Budget of 2009-10
According to PWC in 2010, India joined the league of Top 10 global pharmaceutical markets in terms of sales by 2020 with value reaching US$ 50 Billion.
This research work analyses the pharma industry, its trends and the future outlook. This paper attempts to identify the prominent players and help people make investment decisions i.e. BuyHold-Sell.
In order to achieve this objective a detailed financial statement analyses of the prominent players has been done. Also, in order to find the undervalued pharma stocks Discounted Cash Flow
Analyses (DCF) has been done of the 10 companies
CHAPTER 1: ECONOMIC ANALYSIS
The economy of India is the eleventh largest economy in the world by nominal GDP and the fourth largest by purchasing power parity (PPP). Following strong economic reforms from the socialist inspired economy of a post independence Indian nation, the country began to develop a fast-paced economic growth, as free market principles were initiated in 1990 for international competition and foreign investment. India is an emerging economic power with very large pool of human and natural resource, and growing large pool of professionals. Economists predict that by 2020, India will be among the leading economies of the world
GROSS DOMESTIC PRODCT (GDP)
The Indian economy grew at an annual rate of 7.45% in the last reported quarter. From 2004 until 2011, India’s average quarterly GDP growth was 8.23% reaching a historical high of
10.10% in September 2006 and a record low of 5.50% in December 2004.
The economy is expected to grow at 7% in 2012
INFLATION IN INDIA