Investment Analysis and Portfolio Management (Part-1)
http://www.reportbd.com/articles/102/1/Investment-Analysis-and-Portfolio-Management-Part-1/Page1.html
Super Admin
By Super Admin
Published on 6 June 2008
Investment Analysis and Portfolio Management of Pharmaceuticals & Chemical Industries of Bangladesh. Beximco Pharmaceuticals Ltd, ACI Limited, Square Pharmaceuticals Ltd, Bangla process, Imam button, Kohinoor, Pharma Aids, GlaxoSmithKline Bangladesh Ltd. (GSK).
Letter of Submission
Letter of Submission
10 December, 200*
Mr. Waquar Ahmed
Assistant Professor
Department of Finance
University of Dhaka
Subject: Report on "Investment Analysis and Portfolio Management of Pharmaceuticals & Chemical Industries of Bangladesh."
Dear Sir,
At the threshold of submitting this report on “Investment Analysis and Portfolio Management of Pharmaceuticals & Chemical Industries of Bangladesh". We are feeling immense pleasure to prepare this report as a partial requirement of course F-505(Portfolio Management). We would like to mention that, we tried our best to prepare this report to our greater extent through reading, consulting, discussing among the members of our group to make it a comprehensive one. But due to the limitation of knowledge there might be some unforeseen mistake and incompleteness in our paper. We hope that you will overlook them with kind consideration that we are still learners and will give us the necessary suggestions that you always give for the improvement of our quality in future. We again express our gratitude to you to give us the opportunity of analyzing this case.
We would like to place this Paper for your evaluation & recommendations.
Thanking you.
Sincerely Yours,
(Your Name)
10 December, 200*
Mr. Waquar Ahmed
Assistant Professor
Department of Finance
University of Dhaka
Subject: Report on "Investment Analysis and Portfolio Management of Pharmaceuticals & Chemical Industries of Bangladesh."
Dear Sir,
At the threshold of submitting this report on “Investment Analysis and Portfolio Management of Pharmaceuticals & Chemical Industries of Bangladesh". We are feeling immense pleasure to prepare this report as a partial requirement of course F-505(Portfolio Management). We would like to mention that, we tried our best to prepare this report to our greater extent through reading, consulting, discussing among the members of our group to make it a comprehensive one. But due to the limitation of knowledge there might be some unforeseen mistake and incompleteness in our paper. We hope that you will overlook them with kind consideration that we are still learners and will give us the necessary suggestions that you always give for the improvement of our quality in future. We again express our gratitude to you to give us the opportunity of analyzing this case.
We would like to place this Paper for your evaluation & recommendations.
Thanking you.
Sincerely Yours,
(Your Name)
Honesty Statement & Acknowledgement
HONESTY STATEMENT
This honesty statement entitle that we, the members of the group no. 09 have prepared our report on "Investment Analysis and Portfolio Management of Pharmaceuticals & Chemical Industries of Bangladesh." related to course F-505 on our own. This report is totally based on our group discussion and understanding. During the report preparation all the members have spontaneously performed their own duties to come to a solution of the case. In preparing the report, we have neither taken any undue help from others nor make up any freak data. We have thoroughly enjoyed the total process as it gives us an opportunity to deal with a practical situation of product launching and promotional effort of a company.
ACKNOWLEDGEMENT
As per requirements of the MBA program our venerable course teacher Mr. Waquar Ahmed has included a report in the course curriculum. We are group 09 and our assigned report is "Investment Analysis and Portfolio Management of Pharmaceuticals & Chemical Industries of Bangladesh". We express our sincere gratitude to our honorable course teacher Mr. Waquar Ahmed, Assistant Professor of the Department of Finance, University of Dhaka, for his guidance, advice and assistance in preparing the assigned case. We are really grateful to our course instructor for his unstinted support, timely and sophisticated direction and finally endless morale in learning the knowledge through preparing this report. This analysis helped us a lot in understanding how an investor takes its investment decision, what factors should be consider when taking investment decision and how to construct portfolio – portfolio management. It has also enhanced our analytical and decision making ability. Finally, thanks are also due to our group members who have done their job enthusiastically and perfectly.
This honesty statement entitle that we, the members of the group no. 09 have prepared our report on "Investment Analysis and Portfolio Management of Pharmaceuticals & Chemical Industries of Bangladesh." related to course F-505 on our own. This report is totally based on our group discussion and understanding. During the report preparation all the members have spontaneously performed their own duties to come to a solution of the case. In preparing the report, we have neither taken any undue help from others nor make up any freak data. We have thoroughly enjoyed the total process as it gives us an opportunity to deal with a practical situation of product launching and promotional effort of a company.
ACKNOWLEDGEMENT
As per requirements of the MBA program our venerable course teacher Mr. Waquar Ahmed has included a report in the course curriculum. We are group 09 and our assigned report is "Investment Analysis and Portfolio Management of Pharmaceuticals & Chemical Industries of Bangladesh". We express our sincere gratitude to our honorable course teacher Mr. Waquar Ahmed, Assistant Professor of the Department of Finance, University of Dhaka, for his guidance, advice and assistance in preparing the assigned case. We are really grateful to our course instructor for his unstinted support, timely and sophisticated direction and finally endless morale in learning the knowledge through preparing this report. This analysis helped us a lot in understanding how an investor takes its investment decision, what factors should be consider when taking investment decision and how to construct portfolio – portfolio management. It has also enhanced our analytical and decision making ability. Finally, thanks are also due to our group members who have done their job enthusiastically and perfectly.
Purpose, Origin & Objectives of Investment Analysis and Portfolio Management of Pharmaceuticals & Chemical Industries of Bangladesh
Purpose of the Study
This report is core subjective area of portfolio management. Here we have conducted both qualitative and quantitative analysis to make investment analysis and portfolio management of pharmaceuticals & chemical industries of Bangladesh. The purpose of the study is to understand how an investor takes its investment decision, what factors should be considered when taking investment decision, how to construct portfolio and management of portfolio. To take the decisions we do economy, industry & company analysis, five force analysis, attractiveness of the industry and economy, economy and industry driving forces, key success factor analysis to derive economy and industry attractiveness, ratio analysis, fundamental & technical analysis and many others. We think that the main purpose of this study is to make ourselves familiar with the real life portfolio management problems and to find out their possible solutions, which will make us more competent to solve practical problems in our working life.
This report (Investment Analysis and Portfolio Management of Pharmaceuticals & Chemical Industries of Bangladesh) also includes various types of graphical design, which help to depict the company's financial structure as well as the industry features.
Origin of the report:
This report (Investment Analysis and Portfolio Management of Pharmaceuticals & Chemical Industries of Bangladesh) is assigned by our honorable course teacher Mr. Waquar Ahmed as a partial fulfillment of the course F-505 "Portfolio Management". The report is the elaboration of external and internal portfolio management decision among our group members. It was a mater of group discussion and understanding. Assignment submission and presentation is the requirement for Master of Business Administration (MBA) degree. We think that this case analysis will enhance our conceptual knowledge about corporate finance and now we are confident enough to solve any corporate base problem relating to portfolio management
Scope:
The scope of this report is limited within the investigation of the investment analysis and portfolio management of pharmaceuticals & chemical industries of Bangladesh.
We have selected following companies for investment:
Beximco Pharmaceuticals Ltd
ACI Ltd
Square Pharmaceuticals Ltd
Bangla process
Imam button
Kohinoor
Pharma Aids
Glaxo SmithKline Bangladesh Ltd. (GSK)
Objectives:
To fulfill the partial requirement of MBA degree.
To be able to use theoretical knowledge whenever any practical portfolio management problem arises.
To develop our skill in using analytical tools and techniques for analyzing portfolio management problem.
To develop our interpersonal views and concept through sharing among every member of the group that is reflected in this report.
This report is core subjective area of portfolio management. Here we have conducted both qualitative and quantitative analysis to make investment analysis and portfolio management of pharmaceuticals & chemical industries of Bangladesh. The purpose of the study is to understand how an investor takes its investment decision, what factors should be considered when taking investment decision, how to construct portfolio and management of portfolio. To take the decisions we do economy, industry & company analysis, five force analysis, attractiveness of the industry and economy, economy and industry driving forces, key success factor analysis to derive economy and industry attractiveness, ratio analysis, fundamental & technical analysis and many others. We think that the main purpose of this study is to make ourselves familiar with the real life portfolio management problems and to find out their possible solutions, which will make us more competent to solve practical problems in our working life.
This report (Investment Analysis and Portfolio Management of Pharmaceuticals & Chemical Industries of Bangladesh) also includes various types of graphical design, which help to depict the company's financial structure as well as the industry features.
Origin of the report:
This report (Investment Analysis and Portfolio Management of Pharmaceuticals & Chemical Industries of Bangladesh) is assigned by our honorable course teacher Mr. Waquar Ahmed as a partial fulfillment of the course F-505 "Portfolio Management". The report is the elaboration of external and internal portfolio management decision among our group members. It was a mater of group discussion and understanding. Assignment submission and presentation is the requirement for Master of Business Administration (MBA) degree. We think that this case analysis will enhance our conceptual knowledge about corporate finance and now we are confident enough to solve any corporate base problem relating to portfolio management
Scope:
The scope of this report is limited within the investigation of the investment analysis and portfolio management of pharmaceuticals & chemical industries of Bangladesh.
We have selected following companies for investment:
Beximco Pharmaceuticals Ltd
ACI Ltd
Square Pharmaceuticals Ltd
Bangla process
Imam button
Kohinoor
Pharma Aids
Glaxo SmithKline Bangladesh Ltd. (GSK)
Objectives:
To fulfill the partial requirement of MBA degree.
To be able to use theoretical knowledge whenever any practical portfolio management problem arises.
To develop our skill in using analytical tools and techniques for analyzing portfolio management problem.
To develop our interpersonal views and concept through sharing among every member of the group that is reflected in this report.
Methodology & Limitations of the report
Methodology
The term Methodology refers to various stages that are passed and various tools that are used in conducting a study.
Limitations
Although efforts made to make the report was as comprehensive as possible, nevertheless, the following limitations are identified at the time of preparing the report:
The term Methodology refers to various stages that are passed and various tools that are used in conducting a study.
- Various reports collected from Dhaka Stock Exchange & Annual report of related companies are the source of data used in this report.
- By applying subjective judgment some data are assumed that are not given in the case.
- Both Qualitative and Quantitative analysis are made.
- The theoretical part of this report has been collected from text that we studied in our B.B.A. and M.B.A. courses.
Limitations
Although efforts made to make the report was as comprehensive as possible, nevertheless, the following limitations are identified at the time of preparing the report:
- We worked under a limited time passage.
- A lot of information regarding industry, economy, and company are required.
- We have put our optimum effort to formulize the available information
- Many analytical techniques and tools are needed to apply to get appropriate result but due to our lack of practical knowledge our analysis may not be a highly efficient one.
Investment Analysis and Portfolio Management of Pharmaceuticals & Chemical Industries of Bangladesh - Table of Content
Table Of Contents
Executive Summary
Pharmaceutical Industry in Bangladesh
Economy, Industry & Structural Links
Fundamental Analysis:
Economy Analysis
Industry Analysis
Company Analysis
Beximco Pharmaceutical:
Company Profile
SWOT Analysis
Ratio Analysis
Risk Analysis
Square Pharmaceutical:
Company Profile
Ratio Analysis
Risk Analysis
Glaxo Smithkline:
Company Profile
Ratio Analysis
Risk Analysis
Advance Chemical Industries Limited (ACI)
Company Profile
SWOT Analysis
Ratio Analysis
Risk Analysis
Portfolio Construction and Management
Conclusion
References
Executive Summary
Pharmaceutical Industry in Bangladesh
Economy, Industry & Structural Links
Fundamental Analysis:
Economy Analysis
Industry Analysis
Company Analysis
Beximco Pharmaceutical:
Company Profile
SWOT Analysis
Ratio Analysis
Risk Analysis
Square Pharmaceutical:
Company Profile
Ratio Analysis
Risk Analysis
Glaxo Smithkline:
Company Profile
Ratio Analysis
Risk Analysis
Advance Chemical Industries Limited (ACI)
Company Profile
SWOT Analysis
Ratio Analysis
Risk Analysis
Portfolio Construction and Management
Conclusion
References
Executive Summary of the report
Executive Summary
Pharmaceutical industry has grown in Bangladesh in the last two decades at a considerable rate. Its healthy growth supports development of auxiliary industries for producing glass bottles, plastic containers, aluminium collapsible tubes, aluminium PP caps, infusion sets, disposable syringes, and corrugated cartons. Some of these products are also being exported. Printing and packaging industries and even the advertising agencies consider pharmaceutical industry as their major clients and a key driving force for their growth.
The sector consistently creates job opportunities for highly qualified people. Many established entrepreneurs of today started with pharmaceutical companies in the country. Pharmaceutical companies are either directly or indirectly contributing largely towards raising the standard of healthcare through enabling local healthcare personnel to gain access to newer products and also to latest drug information. Due to recent development of this sector we are exporting medicines to global market including European market. This sector is also providing 95% of the total medicine requirement of the local market. Leading Pharmaceutical Companies are expanding their business with the aim to expand export market.
Both qualitative and quantitative analysis was made to prepare this report. The analysis includes:
We analyzed all the possible current and future economic condition of Bangladesh, make industry analysis and company analysis by analyzing various ratios, strengths, weaknesses, opportunities & threats, conduct risk analysis both financial risk and business risk and construct portfolios and manage these portfolios.
Pharmaceutical industry has grown in Bangladesh in the last two decades at a considerable rate. Its healthy growth supports development of auxiliary industries for producing glass bottles, plastic containers, aluminium collapsible tubes, aluminium PP caps, infusion sets, disposable syringes, and corrugated cartons. Some of these products are also being exported. Printing and packaging industries and even the advertising agencies consider pharmaceutical industry as their major clients and a key driving force for their growth.
The sector consistently creates job opportunities for highly qualified people. Many established entrepreneurs of today started with pharmaceutical companies in the country. Pharmaceutical companies are either directly or indirectly contributing largely towards raising the standard of healthcare through enabling local healthcare personnel to gain access to newer products and also to latest drug information. Due to recent development of this sector we are exporting medicines to global market including European market. This sector is also providing 95% of the total medicine requirement of the local market. Leading Pharmaceutical Companies are expanding their business with the aim to expand export market.
Both qualitative and quantitative analysis was made to prepare this report. The analysis includes:
- Economy Analysis
- Industry Analysis
- Company Analysis
- Five Force Analysis
- Attractiveness of the Industry and Economy
- Key Success Factor Analysis
- Ratio Analysis
- SWOT Analysis.
- Risk Analysis.
We analyzed all the possible current and future economic condition of Bangladesh, make industry analysis and company analysis by analyzing various ratios, strengths, weaknesses, opportunities & threats, conduct risk analysis both financial risk and business risk and construct portfolios and manage these portfolios.