FUNDAMENTAL ANALYSIS WITH SPECIAL REFERENCE TO PHARMACEUTICAL COMPANIES LISTED IN NSEJournal: International Journal of Management (IJM) (Vol.7, No. 2)
Publication Date: 2016-02-24
Authors : J. HEMA; V. ARIRAM;
Page : 123-133
Keywords : Fundamental analysis; Indian Pharmaceutical Industry; GDP; Economic;
An investment analysis is essential for the benefit of risk reduction and maximizes the gain. The investment analysis on stock market has two main approaches namely technical analysis and fundamental analysis. This study is focused on fundamental analysis of pharmaceutical companies listed in National Stock Exchange (NSE), which include selected five companies for a period of five years from 2011 to 2015. The fundamental analysis consists of three parts such as economic analysis, industry analysis and company analysis. The economic analysis consists of economic indicators which influence the security market like GDP, inflation, interest rate, foreign reserves, export and agricultural production for the study period. An industry analysis includes industrial compound annual growth rate, sales, revenue and global market share etc. For company analysis, various performance ratios such as EPS, DPS, Net profit Margin, Debt to equity ratio etc., are used. Industry analysis shows that the Indian pharmaceutical industry has high growth rate and company analysis revealed that Lupin and Torrent pharma are financially viable during the study period.
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