About Us

SL. 01 02 03 04 05 06 NAME Mohammad Rabin Islam Md. Atiar Rahman Md. Sanowar Hossain Md. Azizul Islam Ariful Hossain Md. Mahbubur Rahman Khan ID 16-013 16-141 16-175 16-260 16-262 16-263

Our Agenda
Company History Overview
Strategic Analysis Industry Analysis

WACC and Share Price

Ratio Analysis Conclusion

Company Overview:
Year of Establishment

Country of Incorporation
Commercial Production Status

Authorized Capital (Taka)

Paid-up Capital (Taka) Number of Shareholders Main Country of operation Number of Employees

:: :: :: :: :: :: :: :: ::

1976 Bangladesh 1980 Public Limited 9,100 million 3,046.3 million Around 89,000 Bangladesh 2,670

Corporate Governance:
The Company has a three-tier management structure,

comprising the Board of Directors, the Executive Committee and the Management Committee. There is also an Audit Committee, constituted in 2006.

Board Details 1.Executive Committee 2.Management Committee 3.Audit Committee

Manufacturing Capabilities
Situated near Dhaka, the capital city of Bangladesh,

BexPharmas manufacturing site extends over an area of 23 acres. This main site houses manufacturing facilities for producing various drugs in different strengths and delivery systems such as:
Metered Dose Inhaler Oral Solid Dosage Ophthalmic Intravenous Fluid Liquid and Semisolid Prefilled Syringe Dry Powder Inhaler Lyophilized Injectable

Now Presenting..
Mohammad Rabin Islam 16-013

Strategic Analysis
Generally the companies use Strategic

Analysis as a basis for their business strategy. Beximco Pharma follows cost leadership approach as Beximco Pharmas main focus is on cost reduction in every activity in the value chain.

Beximco Pharma has differentiated

itself by offering generic drugs at the most affordable price.

Industry Analysis
Competitive force: 1 Rivalry among existing firms price engages the firms in wars in the industry Beximco fights against the Square pharma then there are no destructive price competitions among them By considering Switching Cost the company has been able to differentiate the products in the market Beximco pharmaceutical Ltd. has able to fulfill the huge customer demands and also earn abnormal profit So there is a good advantage for the company to cut prices to fill capacity

Industry Analysis Contd

Competitive Force 2: Threat of New Entrants Beximco Pharmaceuticals Ltd is earning abnormal profit. As we know the potential for earning abnormal profit attracting new entrants to an industry. Beximco Pharmaceuticals Ltd has already established in the market by maintaining:

Economy of Scale First Mover Advantage Access to channels of distribution and relationships

Now Presenting..
Md. Atiar Rahman 16-141

Industry Analysis Contd

Competitive Force 3: Threat of Substitute Product Relevant substitutes are not necessary for those that have the same form as the existing products, but those that perform the same function. For example, Beximco Pharma produces different products. Napa is one of them for reducing the fever. On the other hand Square pharmaceuticals also produce ACE for reducing the fever. But the price of this product is almost same of these companies. So, customer buys sometimes NAPA and sometimes ACE. Its a threat for the Beximco Pharmaceuticals Ltd. Having the reputation and goodwill of the company is leading position among the pharmaceutical companies.

Industry Analysis Contd

Competitive Force 4: Bargaining Power of Buyers Price Sensitivity: Buyers are more prices sensitive when the product is undifferentiated but in the Beximco pharma there is no undifferentiated products. When the products are undifferentiated there is low switching cost here. Beximco pharma has so many products such as Napa Extra,Oseltamivir, Decomit, Nitrosol, Bexi gold,Dexiten,Atrizin,Napa DT,Ras,Saritene,Nitaxide, Q-Respria 1, 2 etc all products Price are fixed. We know that in the field of medicine site buyer feel reluctant to bargain.
Relative Bargaining Power: Having the fixed Price of

Beximco Parmas product so the buyers in the market have no ability to bargain. They feel interest to buy on the showing price.

Industry Analysis Contd

Competitive Suppliers Force 5: Bargaining Power of
Beximco Pharmaceuticals Ltd as supplier has a strong

bargains power in Pharmaceuticals Ltd companies. Because we have some unique features thus make us unique. We have IV fluid manufacturing plant, MDI plant and Oral solid dosage (OSD) plant.
Beximco Pharmaceuticals Ltd have supported by owns

backward and forward integration. Because Beximco pharma have a own paper printing machine and plastic machine. The cover of the medicine is made by the Beximco plastic industries LTD. So it was backward integration of Beximco pharma.

Now Presenting..
Md. Mahbubur Rahman Khan 16-263

WACC and Share Price

Risk-free rate Market return Beta Cost of equity Cost of debt After tax cost of debt Total market value of equity Book value of debt Weight of equity Weight of debt WACC 0.08 0.268819617 0.734615611 0.218709839 0.119093517 0.091796034 23,565,467,016.00 3,896,034,840 0.86 0.14 0.20

WACC and Share Price Contd

Enterprise value Cash 37,796,087,803.52 518,768,296

Interest-bearing debt
Equity value

3,896,034,840
34,418,821,259.52

Value per share

136.71

Current Forecast Price is Tk.136.71 and Current Market Price is Tk.56.71 So, The Share Price of Beximco Pharma is Undervalued by Tk.80

Now Presenting..
Ariful Hossain 16-262

Ratio Analysis
Investment Valuation Ratios:

Dividend per share =

dividend Number of shares outstandin g

Interpretation: Only in the year 2008 the Dividend Per Share was the highest because of the high (30%) dividend in that year. Then, although Dividend Per Share dropped in the next year (15%), it was increasing from year 2009 to 2011.

Ratio Analysis Contd

Profitability Ratios:

Net income Net Profit Margin(%) = Revenue

Interpretation: There is a steady growth in the net profit margin as the companys Net Income and Sales Revenue are increasing gracefully every year.

Now Presenting..
Md. Azizul Islam 16-260

Ratio Analysis Contd

Liquidity And Solvency Ratios:

Current Ratio =

Current As sets Current Liabilitie s

Interpretation: From 2008 the current ratios were decreased but in 2009 it was increased .Because the current assets were decreased in 2008 and 2010 and liabilities were increased so that the current ratios were decreased. But in 2009 and 2011 the ratios were increased due to the increasing in current asset. So increasing in current assets help to meet up the current liabilities.

Management Efficiency Ratios:

Ratio Analysis Contd

Working capital turnover =

Revenue Average working capital

Interpretation: It shows how effectively a company is using its working capital to generate sales. In this case Beximco Pharmas Working Capital Turnover is increasing gently over the five years indicating that it is quite efficient in manipulating its Working Capital to generate Revenue.

Conclusion
Beximco Pharmaceuticals Ltd (BPL) is a leading

manufacturer of pharmaceutical formulations and Active Pharmaceutical Ingredients (APIs) in Bangladesh. The company is consistently building upon its portfolio and currently producing more than 400 products in different dosage With decades of contract manufacturing experience with global MNCs, skilled manpower and proven formulation capabilities, the company has been building a visible and growing presence across the continents offering high return

QUERY SESSION.

?!?!?..