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Financial Analysis of Ranbaxy Laboratories Limited

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Financial Analysis of
Ranbaxy Laboratories Limited

Index

S. No. Content Page No.

1 Executive Summary of ‘Ranbaxy Laboratories Limited’ 3
2 Capital Expenditure at Ranbaxy 7
3 Account Balances for properties, plant and equipment 8
4 Capital Structure at Ranbaxy 9
5 Beta measure of the company 11
6 Weighted Average cost of capital 13
7 Debt-Equity ratio 14
8 Du Pont Analysis 15
9 Comments on 16
a) Working Capital Position
b) Cash position
c) Short –term financing
d) Credit policy
e) Inventory management policy
10 Bibliography 19

1)

Executive Summary

Indian Pharmaceutical Industry

The Indian Pharmaceutical Industry today is in the front rank of India’s science-based industries with wide ranging capabilities in the complex field of drug manufacture and technology India, which is the 3rd Largest Producer of Pharmaceuticals Across the World- is already a US$ 8.2 Billion pharmaceutical market. The Indian pharmaceutical industry is further expected to grow by 10% in the year 2010. It ranks very high in terms of technology, quality and range of medicines manufactured. From simple headache pills to sophisticated antibiotics and complex cardiac compounds, almost every type of medicine is now made indigenously.

Pharmaceutical Industry provides employment to millions and ensures that essential drugs at affordable prices are available to the vast population of India.

Indian Pharma Industry is playing a key role in promoting and sustaining development in the vital field of medicines. Around 70% of the country's demand for bulk drugs, drug intermediates, pharmaceutical formulations, chemicals, tablets, capsules, orals and vaccines is met by Indian pharmaceutical industry. A number of Indian pharmaceutical companies adhere to

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