The TakaInvest web manufacturing fundamental dashboard provides a comprehensive view of key income statement, margin, growth, and ratio metrics for a variety of manufacturing industries consisting of DSE listed companies. These metrics can be easily compared across companies to identify strengths and weaknesses and make informed investment decisions.
Figure: Taka Dashboard - Manufacturing Fundamental Sector Overview
One of the unique features of the Manufacturing Fundamentals dashboard is its industry classification. We've grouped companies into specific manufacturing sectors so users can see how they compare within their respective industries. This allows to identify trends and patterns that may not be apparent when looking at the data for all manufacturing companies as a whole.
Overview of DSE Listed Pharmaceutical Companies in Bangladesh
In Bangladesh, the pharmaceutical industry is a major contributor to the country's economy and is one of the largest and most technologically advanced sectors in the country. Pharmaceutical stocks have historically proven to be more stable and high performing compared to other stocks, generating returns with lower price to earnings ratio and good mid to long-term investing prospect. As of recent years, investors remain largely neutral on the Bangladeshi Pharmaceuticals business, indicating that they expect long-term growth rates to stay stable with the sector trading near its three-year average PE ratio of 16.8. Pharmaceutical businesses' earnings have increased by 11% each year during the previous three years. These listed firms' revenues have increased by 12% every year. This indicates that these firms are generating more revenue as well as earning overall.
Here, we see an overview of the DSE listed pharmaceutical companies of Bangladesh from the industry overview tab. The pharmaceutical industry classification comprising of these listed companies has a total asset of 2 trillion taka with an aggregate revenue of taka 905bn.
|
Symbol |
Company Name |
|
ACMELAB |
The ACME Laboratories Limited |
|
BXPHARMA |
Beximco Pharmaceuticals Limited |
|
RENATA |
Renata Limited |
|
IBNSINA |
The IBN SINA Pharmaceutical Industry Limited |
|
BEACONPHAR |
Beacon Pharmaceuticals Limited |
|
ACTIVEFINE |
Active Fine Chemicals Limited |
|
SILVAPHL |
Silva Pharmaceuticals Limited |
|
AMBEEPHA |
Ambee Pharmaceuticals Limited |
|
CENTRALPHL |
Central Pharmaceuticals Limited |
|
IBP |
Indo-Bangla Pharmaceuticals Limited |
|
SQURPHARMA |
Square Pharmaceuticals Ltd. |
|
NAVANAPHAR |
Navana Pharmaceuticals Ltd |
|
SILCOPHL |
Silco Pharmaceuticals Limited |
Figure: DSE listed companies under the Pharmaceutical industry classification
As of the fiscal year ended 2021-22, the DSE listed companies under the pharmaceutical industry has an aggregate revenue of taka 166bn and gross profit of 78bn, with gross profit growth of 11.11% over the fiscal year ended 2020-21. For the same period, the net profit stands at BDT 27bn with and year over year growth of 6.89%. The pharmaceutical industry is among the highest revenue generating industries along with consumer goods, steel, fuel distribution, telecommunication and power generation all having sub 100bn to 200bn taka in annual revenue. The industry shows consistent growth over the years with revenue, with revenue growth showing a sharp dip in recent years, presumably due to the global pandemic.
Figure: Figure: Manufacturing Dashboard- Income Statement Tab
Margin Comparison
Under the margin metrics tab, margin charts show margins for gross profit, operating profit, net profit at either annual or quarterly basis. The aggregate gross profit margin of the listed pharmaceutical companies has increased over recent years with the latest gross profit margin standing at 47.10% for 2022, as seen from the chart. However, operating profit margin as well as net profit margin has been decreasing with the latest operating profit margin being 23.32% and net profit margin being 18.17% for 2022. This finding is consistent with other industries with goods and services with fast growing demand and increasing consumer base such as consumer goods, automobile, fuel refinery etc. An overview of all the financials are given in the bottom left for each quarter in tabular form.
Figure: Manufacturing Dashboard- Balance Sheet tab
From the balance sheet tab, its apparent the pharmaceutical industry discussed here, comprising of DSE listed companies is largest in terms of total equity size compared to other industries, with the overall aggregate equity standing at 208,710M taka. However, total asset growth and NAV per share has been stagnant in recent years with total asset growth, cash balance and OCF following the same trend. This is attributable particularly to the investors’ confidence on the stability and long term growth prospect of the listed companies in the industry overall.
Ratio comparison
From the ratios tab we can see that the listed companies under pharmaceutical industry, aggregate cash ratio has remained within 1-2 in the current years while debt and debt to equity ratio shows fluctuation between (0.1-0.2). Compared to other manufacturing industries such as Cement, Automobile, Fuel distribution and refinery, Consumer goods, Electronic appliance etc., listed companies under Pharmaceutical industry has lower debt ratio (fluctuating between 0.13-0.17) as well as debt to equity ratio (between 0.17 to 0.23) for the past 5 years. Both ROA and ROE are comparatively higher where Return on asset (ROA) remained within sub 2-4% range with the Return on equity fluctuating between 3-4% for the years 2016-22. For the same period, asset turnover and equity turnover chart shows fluctuation between 0.15x to 0.25x which is on the moderate side when compared with other industries such as Steel, electronic appliance, telecom, all showing higher asset as well as equity turnover (1x-2x). Overall, the ratios can be seen at a glance on quarterly basis from the table on the bottom left.
Figure: Manufacturing Dashboard- Ratio Tab
Stock Returns
The movement in price and volume for the stocks listed under the pharmaceutical industry has been significantly upward trending as seen from the technical chart using the comparison of the Pharmachem index, the DS30 and DSEX broad index. Over the last decade (2013-23), the DSEX and DS30 index shows price change of 45.71% and 49.65% respectively with significant dips in the overall index during 2020. For the same time period, the pharmaceutical and chemical industry has experienced price increase of 280.69% with similar significant downturn in index due to the global crisis due to the pandemic of 2020. The listed companies have however generated consistently significantly higher return compared to the broad market index over this time period.
Figure: Technical Chart- Price change of Pharmaceutical & Chemical Industry over the years compared to DSEX and DS30 Index
Compared to some other industries in the market such as Engineering, Bank, Fuel & Power, Service and Cement, DSE listed companies in the Pharmaceutical and Chemical industry has enjoyed the most returns over the decade (2013-2023) with price increase of over 247.88%. The next closest return is enjoyed by the service and real state industry with return of 163.33% followed by fuel and power, cement and engineering industry. This shows the industry consistently outperforming the market as well as other industries in the comparison generating higher returns, especially over the past 5 years.
Figure: Technical Chart- Price change comparison of Pharmaceutical & Chemical, Fuel & Power, Services & Real Estate, Cement and Engineering Industry