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FM-2 Presentation: SUN Pharmaceutica Ls Industries Limited

The document is a presentation by Sun Pharmaceutical Industries Limited students analyzing the company's stock performance from April 2015 to January 2020 compared to the broader stock market. It includes a table showing the monthly Sensex growth, Sun Pharma's stock price changes and dividends, and calculates the stock's beta relative to the market. The analysis finds that over the period studied, Sun Pharma's stock had higher volatility than the overall market as evidenced by its beta greater than 1.

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Neha Smriti
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76 views6 pages

FM-2 Presentation: SUN Pharmaceutica Ls Industries Limited

The document is a presentation by Sun Pharmaceutical Industries Limited students analyzing the company's stock performance from April 2015 to January 2020 compared to the broader stock market. It includes a table showing the monthly Sensex growth, Sun Pharma's stock price changes and dividends, and calculates the stock's beta relative to the market. The analysis finds that over the period studied, Sun Pharma's stock had higher volatility than the overall market as evidenced by its beta greater than 1.

Uploaded by

Neha Smriti
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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FM-2 Presentation

P R E S E N T E D B Y:

SUN
K AVN E ES H K AU R – U M 1 9 2 1 6

NEHA SMRITI – UM19224

RUJHAN CHOPRA – UM19235 PHARMACEUTICA


TA R U N B A N D A – U M 1 9 2 5 7
LS INDUSTRIES
LIMITED
VEDANT BANSAL – UM19261

YOG ESH G OE L – UM19263

The data for the Beta Calculation has been taken from
April 2015 till January 2020 as this period saw the
acquisition of Ranbaxy by Sun Pharma.
Month Sensex Growth in Sensex (Rm) Date Last Price Growth in Stock Price (Capital Gain) Dividend Yield Ri

Beta
Jan-20 40723.49 -1.29% Jan-20 447.8 3.53% 1.04% 4.57%
Dec-19 41253.74 1.13% Dec-19 432.55 -3.85% 1.05% -2.80%
Nov-19 40793.81 1.66% Nov-19 449.85 3.80% 1.03% 4.83%
Oct-19 40129.05 3.78% Oct-19 433.4 11.29% 1.01% 12.30%
Sep-19 38667.33 3.57% Sep-19 389.45 -13.53% 1.04% -12.49%
Aug-19 37332.79 -0.40% Aug-19 450.4 5.54% 1.10% 6.64%
Jul-19 426.75 6.43% 1.09% 7.52%

Calculation
Jul-19 37481.12 -4.86%
Jun-19 39394.64 -0.80% Jun-19 400.95 -2.17% 1.06% -1.11%
May-19 39714.2 1.75% May-19 409.85 -10.44% 1.08% -9.36%
Apr-19 39031.55 0.93% Apr-19 457.65 -4.43% 1.03% -3.40%
Mar-19 38672.91 7.82% Mar-19 478.85 7.57% 1.05% 8.62%
Feb-19 35867.44 -1.07% Feb-19 445.15 5.12% 1.27% 6.39%
Jan-19 36256.69 0.52% Jan-19 423.45 -1.64% 1.23% -0.41%
Dec-18 36068.33 -0.35% Dec-18 430.5 -12.61% 1.27% -11.34%
Nov-18 36194.3 5.09% Nov-18 492.6 -15.11% 1.38% -13.73%
Oct-18 34442.05 -4.93% Oct-18 580.25 -6.90% 1.44% -5.46%
Sep-18 36227.14 -6.26% Sep-18 623.25 -4.53% 1.37% -3.16%
Aug-18 38645.07 2.76% Aug-18 652.85 14.84% 1.30% 16.14%
Jul-18 37606.58 6.16% Jul-18 568.5 0.80% 1.35% 2.15%
Jun-18 35423.48 0.29% Jun-18 564 17.41% 1.45% 18.86%
May-18 35322.38 0.46% May-18 480.35 -9.09% 1.31% -7.78%
Apr-18 35160.36 6.65% Apr-18 528.4 6.73% 1.30% 8.03%
Mar-18 32968.68 -3.56% Mar-18 495.1 -7.52% 1.40% -6.12%
Feb-18 34184.04 -4.95% Feb-18 535.35 -7.68% 1.16% -6.52%
Jan-18 35965.02 5.60% Jan-18 579.9 1.53% 1.08% 2.61%
Dec-17
Nov-17
34056.83
33149.35
2.74%
-0.19%
Dec-17
Nov-17
Oct-17
571.15
539.95
552.9
5.78%
-2.34%
9.87%
1.18%
1.16%
1.15%
6.96%
-1.18%
11.02%
Covariance 0.0002
Oct-17 33213.13 6.17%
Sep-17 31283.72 -1.41% Sep-17 503.25 4.59% 1.26% 5.85%
Aug-17
Jul-17
31730.49
32514.94
-2.41%
5.15%
Aug-17
Jul-17
Jun-17
481.15
531.65
555.7
-9.50%
-4.33%
10.79%
1.31%
1.20%
1.25%
-8.19%
-3.13%
12.04%
Variance 0.0014
Jun-17 30921.61 -0.72%
May-17 31145.8 4.10% May-17 501.6 -21.86% 1.29% -20.57%
Apr-17
Mar-17
29918.4
29620.5
1.01%
3.05%
Apr-17
Mar-17
Feb-17
641.95
688.15
679
-6.71%
1.35%
7.52%
1.31%
1.28%
1.62%
-5.40%
2.63%
9.14%
   
Feb-17 28743.32 3.93%
Jan-17 27655.96 3.87% Jan-17 631.5 0.24% 1.71% 1.95%
Dec-16
Nov-16
26626.46
26652.81
-0.10%
-4.57%
Dec-16
Nov-16
Oct-16
630
709.8
748.1
-11.24%
-5.12%
0.73%
1.73%
1.71%
1.72%
-9.51%
-3.41%
2.45%
Beta 0.179
Oct-16 27930.21 0.23%
Sep-16
Aug-16
Jul-16
27865.96
28452.17
28051.86
-2.06%
1.43%
3.90%
Sep-16
Aug-16
Jul-16
742.7
775.65
829.95
-4.25%
-6.54%
8.76%
1.71%
1.65%
1.68%
-2.54%
-4.89%
10.44%
Beta 0.484
Jun-16
May-16
26999.72
26667.96
1.24%
4.14%
Jun-16
May-16
763.1
762.75
0.05%
-5.98%
1.76%
1.79%
1.81%
-4.19% (Bloomberg)
Apr-16 25606.62 1.04% Apr-16 811.3 -1.06% 1.73% 0.67%
Mar-16 25341.86 10.17% Mar-16 820 -3.97% 1.77% -2.20%
Feb-16 23002 -7.51% Feb-16 853.9 -2.18% 1.85% -0.33%
Jan-16 24870.69 -4.77% Jan-16 872.95 6.44% 1.78% 8.22%
Dec-15 26117.54 -0.11% Dec-15 820.15 12.40% 1.69% 14.09%
Nov-15 26145.67 -1.92% Nov-15 729.65 -17.98% 1.71% -16.27%
Oct-15 26656.83 1.92% Oct-15 889.55 2.44% 1.66% 4.10%
Sep-15 26154.83 -0.49% Sep-15 868.4 -3.40% 1.72% -1.68%
Aug-15 26283.09 -6.51% Aug-15 898.95 9.31% 1.73% 11.04%
Jul-15 28114.56 1.20% Jul-15 822.4 -5.97% 1.55% -4.42%
Jun-15 27780.83 -0.17% Jun-15 874.6 -9.47% 1.55% -7.92%
May-15 27828.44 3.03% May-15 966.1 2.90% 1.63% 4.53%
Apr-15 27011.31 Apr-15 938.85 -8.31% 1.66% -6.65%
Mar-15 1023.9
Cost of Debt
Particulars Amount (In Crores)
Long Term Debt 1422.5
Short Term Debt 4428.05
Total Debt 5850.55

Interest Expense 540.92


Interest Rate 9.25%

Profit Before Tax 719.45


Tax -97.15
Tax Rate -13.50%
1-Tax Rate 100%

Cost of Debt 9.25%


Cost of Equity

Rm 7.82%

Rf 6.57%

Beta 0.178878228 Ri = Rf + β(Rm-Rf)

Cost of
Equity 6.79%
Weighted Average Cost of Capital (WACC)

Cost of equity 6.79%


Cost of Debt 9.25%
Market Capitalisation 1,01,395.90
Long Term Debt 1422.5
Short Term Debt 4428.05
Equity + Debt 1,07,246.45

We 94.54%
Wd 5.46%

WACC 6.93%
THANK YOU

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