Fundamental Analysis of Indian Pharmaceutical Companies
GLOBAL MANAGEMENT HORIZON Volume – VII, Jan - June 2018, ISSN 2249-6211
24 Pages Posted: 16 Jul 2018
Date Written: June 25, 2018
Abstract
Estimation of real worth of a stock is made by considering the earning potential of the company which depends on investment environment and factors relating to specific industry, competitiveness, quality of management, operational efficiency, profitability, capital structure and dividend policy. For investing in a company many people use fundamental analysis for the selection and technical analysis to make their buy and sell decisions. It relates to the examination of the intrinsic worth of a company to find out whether the current market price is fair or not, whether it is overpriced or underpriced. It is believed that analyzing the economy, strategy, management, product, financial status and other related information will help to choose shares that will outperform the market and provide consistent gains to the investor. It is the examination of the underlying forces that affect the interest of the economy, industrial sectors and companies. Here an attempt has been made to analyze the fundamental analysis through analyzing the financial performance of ten selected Pharma and Healthcare companies by using various statistical techniques. Torrent Pharmaceuticals stands as No. 1 company followed by Piramal which stood as the second.
Keywords: Pharmaceutical Company, Fundamental Analysis, Ratios, Intrinsic Value
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