1. FIN30
Ms. Mahtab Faruqui

2. Group II~~
~~~Section 03
Lamisa Manzoor 11304072
 Protiti Khan 11304018
 Upeksha Abeysekara 11204098
 Fariha Ahmed 11204035
 Samiya Yesmin 11304043


3. BEXIMCO Pharmaceuticals Ltd.
(BPL)




BPL was founded in 1976 and started operations in 1980
It started exporting in 1992
It is the largest pharmaceutical exporter, to over 45 countries.
BPL is the only company to win National Export Trophy
(Gold)
Square Pharmaceuticals Ltd. (SPL)




SPL was established in 1958 and went public 1991
Mr. Samson H. Chowdhury is the founder
SPL is Bangladesh’s largest pharmaceutical
It has been continuously in the 1st position among all
national and multinational companies since 1985.

4. Industrial Outlook

OPPORTUNITIES:
 Advancing
technologically
 Research and
development
 Export opportunities
have increased
 Low operational costs
 Government benefits

THREATS:
 Indian companies
 Bangladeshi government does
not have the right policy
 Small and new firms
 Large scale manufacturers
from multinational companies
 Neighboring countries may
enter our market illegally
 In the long run there might be
shortage of raw materials
 Fluctuations in raw material
prices

5. 2. Acid-Test/
Quick Ratio
1. Current Ratios
3
2
Quick Ratio=
Current Assets— Inventories
Current Liabilities
2.5
2
Ratio
Ratio
1.5
1
0.5
0
2010
2011
2012
2
1.8
1.6
1.4
1.2
1
0.8
0.6
0.4
0.2
0
Years
1
Current Ratio=
Current Assets
Current Liabilities
2010
BPL
SPL
2011
2012
Years

6. 4. Debt-to-Total
Assets Ratio
3. Debt-to Equity
Ratio
0.45
4
Debt-To-TotalAssets=
Total Debt
Total Assets
Ratio
0.4
BPL
0.35
SPL
0.35
0.3
0.3
0.25
0.25
Ratio
0.2
0.15
0.2
0.1
0.15
0.05
0.1
0
2010
3
Debt-To-Equity=
2011
2012
Years
Total Debt
Shareholders’ Equity
0.05
0
2010
2011
2012
Years

7. 6. Receivables
Turnover Ratio
5. Interest Coverage
Ratio
12
Receivable Turnover
(RT)=
6
10
BPL
8
Annual Net Credit Sales
Receivables
SPL
Ratio
Ratio
25
6
20
4
15
2
10
0
2010
2011
Years
2012
5
0
5
Interest Coverage=
EBIT
Interest Expense
2010
2011
2012
Years

8. 50
45
40
35
30
25
20
15
10
5
0
8
Inventory Turnover
(IT)=
BPL
Cost Of Goods Sold
Inventory
SPL
2.5
2
1.5
1
2010
7
8. Inventory
Turnover Ratio
Ratio
Ratio
7. Receivables
Turnover in Days
Ratio
2011
Receivable Turnover In Days
(RTD) =
2012
Years
365
RT
0.5
0
2010
2011Years 2012

9. 9. Inventory Turnover
in Days Ratio
10. Asset
Turnover Ratio
350
10
Asset Turnover=
300
250
BPL
Net Sales
Total Assets
SPL
0.8
Ratio
200
Ratio
150
100
0.7
0.6
0.5
50
0.4
0
2010
2011
2012
0.3
0.2
Years
0.1
9
Inventory Turnover In Days
(ITD)=
365
IT
0
2010
2011 Years
2012

10. 11. Net Profit Margin Ratio
20
18
Net Profit After Taxes
16
11
Net Profit Margin=
Net Sales
14
Ratio
12
10
BP
L
8
6
4
2
0
2010
2011
2012 Years

11. 12. Return on
Investment Ratio
13. Return on
Equity Ratio
25
1
2
Return On Investment
(ROI)=
Net Profit After Taxes
Total Assets
20
16
15
Ratio
14
12
10
Ratio
10
5
8
6
0
4
2010
2
2011Years
2012
0
2010
2011
Years
13
2012
BPL
Return On Equity (ROE)=
Net Profit After Taxes
Shareholders’ Equity

12. Sector Market Analysis




SPL≈tk.240
BPL≈ tk. 52
Price: SPL is x5 BPL
Share Volume:
SPL is double of BPL

13. Conclusion

SPL:
 higher

performance
 higher market share
 higher profitability
 lower liquidity than BPL
 lower risk

BPL:
smaller market share
 lower profitability
 higher risk
 greater liquidity than
SPL.

Defensive Investment βSPL:0.53 <
βBPL:0.88

14. Recommendations




SPL needs to increase liquidity.
Benchmarking for BPL.
Research & Development for increased growth.
Both companies need to look for new market
segments.

15. Questions?
~The End~