FACULTY STUDENT COLLABORATIVE

LEARNING

Report on

“IMPACT ON STOCK MARKET DURING

AND PRE PANDEMIC”

Prepared By:

Ms. Bhavna Patnaik

Ms. Pallavi Kathod
Ms. Muskan Vazirani
Ms. Samiksha Desai
Ms. Shilpy Singh
Ms. Shailey Karade

Guided By:

Dr. Neetal Vyas

INDIRA INSTITUTE OF MANAGEMENT

PUNE
June, 2021
 CERTIFICATE

This is to certify that the following students of POST GRADUATE DIPLOMA IN

MANAGEMENT at INDIRA INSTITUTE OF MANAGEMENT, PUNE (IIMP) have
worked on the Research Project, entitled “Impact on Stock Market During and Pre
Pandemic”, from March 2019 to April 2021 in partial fulfillment of the requirement for
FACULTY STUDENT COLLABORATIVE LEARNING of FINANCE
SPECIALIZATION.

Name of the Students:

1. Bhavna Patnaik
2. Shilpy Singh
3. Muskan Vazirani
4. Shailey Karade
5. Pallavi Khatod
6. Samiksha Desai

During the Project work, we found all of them to be sincere and committed to the Project Work.
Wishing them all the best for their future endeavors.

Name & Signature of Faculty Mentor Name & Signature of Head of Department

Date:

2
 DECLARATION

We hereby declare that the Faculty Student Collaborative Learning (FSCL)

Research Project on “Impact on stock Market During and pre pandemic” is an
original piece of work done by us under the guidance of Dr. Neetal Vyas. All
Secondary data and other relevant information drawn from different sources for
this report are duly acknowledged by us. We have put all our sincere efforts in
making the report see the light of the day. No part of this report has been
submitted by us to any university / institution for the award of any diploma or
degree.

Name of the Student Signature of the Student

1. Bhavna Patnaik
2. Shilpy Singh
3. Muskan Vazirani
4. Shailey Karade
5. Pallavi Khatod
6. Samiksha Desai

Place:

Date:
 ACKNOWLEDGEMENT

First and foremost we would like to sincerely thank to our institute INDIRA
INSTITUTE OF MANAGEMENT, PUNE for giving us the opportunity to work
on this project as a subject for the semester II .Secondly we would like to thank our
subject guide DR. NEETAL VYAS, for providing us the directions needed
throughout the course period. We are also thankful to our project mentor, DR.
NEETAL VYAS for giving us guidance to do this research project on “Impact on
stock market during and pre pandemic" Her experience and knowledge has helped
us immensely in successful completion of this project.
Working on this project has been a great learning experience. We are thankful to
all concern people who have played active role in successful completion of this
project.

Thank you
 TABLE OF CONTENTS

SR. PARTICULARS PAGE NO.

No
1 INTRODUCTION 8

2 REVIEW OF LITERATURE 11

3 OBJECTIVES 21

4 RESEACH METHODOLOGY 23

5 DATA INTERPRETATION 25

6 FINDINGS 45

7 CONCLUSION 47

8 LEARNINGS 49

9 REFERENCES 50

10 APPENDIX 51
 “IMPACT ON STOCK MARKET DURING AND PRE
PANDEMIC”

ABSTRACT
The outbreak of COVID-19 has affected the entire global financial market in an
unprecedented way. Due to the disruptions that emerged in the global market; the
financial market of India also reacted to the pandemic and witnessed sharp volatility.
Given the COVID-19 situation, this research empirically investigates the impact of
COVID-19 on the Indian stock market. Using daily closing prices of indices such as
Nifty and Sensex, this study examines the volatility of these indices over the period 3rd
September 2019 to 10th July 2020. Further, the study has attempted to make a
comparative analysis of the return of the stock market in pre-COVID-19 and during the
COVID19 situation. GARCH model is used to capture the volatility of the indices.
Findings reveal that the stock market in India has experienced volatility during the
pandemic period. While comparing the results with that of the pre-COVID-19 period, we
find that return on the indices is higher in the pre-COVID-19 period than during COVID-
19. The return of both the stock market reached the bottom line during the first lockdown
period, which is from24th March to 6th April.
The research investigates the impact of the lockdown period caused by the COVID-19 to
the stock market of India. The study examines the extent of the influence of the
lockdown on the Indian stock market and whether the market reaction would be the same
in pre-and during-lockdown period caused by COVID-19. Market Model Event study
methodology is used. A sample of 5 companies listed on Bombay Stock Exchange (BSE)
are selected at random for the purpose of the study. The results indicate that the market
reacted positively with significantly positive Average Abnormal Returns during the
present lockdown period, and investors anticipated the lockdown and reacted positively,
whereas in the pre-lockdown period investors panicked and it was reflected in negative
AAR. The study finds evidence of a positive AR around the present lockdown period and
confirms that lockdown had a positive impact on the stock market performance of stocks
till the situation improves in the Indian context.
CHAPTER-1
 INTRODUCTION

Stock Market can be defined as a platform that facilitates Trading. Securities Contract
Regulation Act 1956 ( SCRA ) defines Stock Market as ; “ anybody of individuals,
whether incorporated or not constituted for the purpose of assisting, regulating or
controlling the business of buying, selling or dealing in securities”.

There are two major Stock Exchanges in India :-

1. The Bombay Stock Exchange (BSE)

2. The National Stock Exchange (NSE)

The Bombay Stock Exchange :- BSE was established in 1875. BSE is the oldest stock
exchange in Asia and is India’s first stock exchange. BSE is the Stock Exchange to be
recongnised under the SCR Act, 1956. SENSEX is the benchmark Index of BSE. It is an
integral component of the “$1 trillion” club, having the largest Market Capitalization
value at $2.2 trillion.

The National Stock Exchange :- NSE was founded in 1992. It started trading operations
in 1994. It started Internet trading in Index Futures in 2000. Nifty-50 is the benchmark
Index of NSE. The NSE, unlike other Indian Stock Exchanges, is a tax-paying company
incorporated under the Companies Act, 1956. It has been promoted by leading financial
institutions and banks to provide automated and modern facilities for trading, clearing
and settlement of securities in a transparent, fair and open manner and with countrywide
access.

Regulator of Stock Market in India :- SEBI ( The Securities and Exchange Board of
India ) is the designated regulatory body for the finance and investments market in India.
The board plays a vital role in maintaining stable and efficient financial and investment
markets by creating and enforcing effective regulation in India’s financial marketplace.
SEBI has three functions rolled into one body : legislative, judicial and executive.
Functions performed by Stock Market : -

1.Economic Barometer – A stock exchange is a reliable barometer to measure the

economic condition of a country. Stock Exchange is also known as a pulse of economy
mirror which reflects the economic conditions of a country.

2.Pricing of Securities – The stock market helps to value the securities on the basis of
demand and supply factors. The valuation of securities is useful to investors, government
and creditors.

3.Safety of Transactions – In stock market only the listed securities are traded and stock
exchange authorities include the companies name in the trade list only after verifying the
soundness of the company.

4.Better allocation of Capital – The shares of profit making companies are quotes at
higher prices and are actively traded so much companies can easily raise fresh capital
from stock market. The stock market also offers attractive opportunities of investments in
various securities. These attractive opportunities encourage people to save more and
invest.

The coronavirus outbreak, which now is more referred to as Covid-19 as a shortened

version of “coronavirus disease of 2019”, first appeared in the region of Wuhan, China.
The virus spreads incredibly quick between people and in just a few months, tens of
thousands of people worldwide have become infected.
On 24 March 2020, the Government of India under Prime Minister Mr. Narendra Modi
ordered a nationwide lockdown for 21 days, limiting movement of the entire 1.3 billion
population of India as a preventive measure against the COVID-19 pandemic in India. It
was followed by a 14-hour voluntary public curfew on 22 March, after enforcing a series
of regulations in the country's COVID-19 affected regions. Ever Since then, the corona
virus positive cases are increasing at a rapid rate and hence the lockdown also got
extended.
Phase 1: 25 March 2020 – 14 April 2020 (21 days)
Phase 2: 15 April 2020 – 3 May 2020 (19 days)
Phase 3: 4 May 2020 – 17 May 2020 (14 days)
Phase 4: 18 May 2020 – 31 May 2020 (14 days)
Phase 5: (only for containment zones): 1 June 2020 – 30 June 2020.
This study examines the impact of the COVID-19 outbreak on the stock market.
This Pandemic COVID-19 affected the economies of the world and India was also
among those nations. Due to the lockdown ordered by the government of India,
everything came to halt in this busiest country. The crashing of the global market
economy, major drop in oil prices, and increasing unemployment are some of the impacts
of the pandemic COVID-19 that affected almost all countries in the world. India was also
not far behind to get the impact of COVID-19 on their economic growth, development,
economy and stock market. India has a robust stock market that reacts and responds well
to the global situation.
There are two major stock indices in India- Bombay Stock Exchange (BSE),
Sensex, and National Stock Exchange (NSE), Nifty. If we look at the Bombay Stock
Exchange there is a drop in the Sensex index to 13.2% on 23 rd March 2020. It was the
highest single they fall after the news of the Harshad Mehta Scam, 28 th April 1991
(Mandal, 2020). Similarly Nifty has also declined to almost 29% during this period.
Some economists have considered the impact of COVID-19 on the Indian stock market
as a ‘Black-Swan Event’ i.e. the occurrence of a highly unanticipated event with an
extremely bad impact. Due to the lockdown policy adopted by the government, the
factories have reduced the size of their labour force as well as production level which
disrupted the supply chain. Again because of the uncertainty prevailing among mankind,
people also reduce their consumption habits leading to demand-side shock. Studies have
also found that the entire previous pandemic had affected only the demand chain. But this
COVID-19 pandemic has affected both the demand chain and supply chain .we are here
seeing the two most prominent stock markets of India i.e bse Sensex and Nse nifty and
particularly with regard to the pharmaceutical sector.
The COVID-19 pandemic affected whole country economy, including the
pharmaceutical sector. While currently there is no definitive treatment for this novel
infectious disease, pharmaceutical industry is assisting governments to address the
COVID-19 unmet needs, from research and development actions on potential treatment
strategies to balancing medicines supply chain in the time of crisis. Along this,
pharmaceutical sectors are struggling to maintain natural market flow; as the recent
pandemic affects access to essential medicines at an affordable price, which is the main
goal of every pharmaceutical system. As due to this pandemic the health is the major
concern for the country also the hope that the pharma sector have got due to this covid is
just the theoretical or real will be studying that through comparing the 5 companies of
pharma sectors and its performance on the stock market in the pre covid and post
covid .The present study aims at understanding how Covid 19 outbreak has affected the
pharmaceuticals company which are listed with the National Stock Exchange of India.
We have selected top five leading pharmaceutical companies listed with NSE, and the
selection was purely based on the market net worth of the companies. The report will be
focusing some of the points like scalability factors in pharma business during COVID-19.
The methodological chapter will present the procedure of the research, distribute an
outline of the methods and approaches that we will conduct in this study.
CHAPTER-2
 REVIEW OF LITERATURE

Since, the COVID-19 was declared

pandemic by WHO,
there is a dearth of studies related to
COVID-19 impact
on stock market, as it is a new global
development. Some
research has been carried out to analyze
the impact of
COVID-19 on different economies, but
the number is still
small.
Since, the COVID-19 was declared
pandemic by WHO,
there is a dearth of studies related to
COVID-19 impact
on stock market, as it is a new global
development. Some
research has been carried out to analyze
the impact of
COVID-19 on different economies, but
the number is still
small.
Since, the COVID-19 was declared
pandemic by WHO,
there is a dearth of studies related to
COVID-19 impact
on stock market, as it is a new global
development. Some
research has been carried out to analyze
the impact of
COVID-19 on different economies, but
the number is still
small
Since, the COVID-19 was declared
pandemic by WHO,
there is a dearth of studies related to
COVID-19 impact
on stock market, as it is a new global
development. Some
research has been carried out to analyze
the impact of
COVID-19 on different economies, but
the number is still
small
WHO declared the COVID-19 pandemic; there is a dearth of studies related to COVID-
19 impact on stock market, as it is a new global development. The impact of COVID-19
on the financial market as well as the stock market has been subject to many empirical
studies both in advanced and emerging economies. Existing literature found diverse
results in these regards.
The purpose of this study is to examine how Covid 19 outbreak has affected leading
pharmaceutical stocks listed with the National Stock Exchange of India. We have
selected five leading pharmaceutical companies listed with NSE, and the selection was
purely based on the market capitalization of the companies. The general hypothecation
of this study was the pharmaceutical stocks would move against the general market
trend (contrarian effect). The study period was classified in to pre-crisis period and
Covid 19 crisis period. The data consists of 123 daily price observations of the selected
10 pharmaceutical companies. The period of study is ranging from 3 rd September 2019
to 28th February 2020. The results reported that momentum effect is persisting with
pharmaceutical stocks as the pharmaceutical stocks are moving in accordance with the
general benchmarking index. Only two companies, namely Aurobindo Pharma Ltd and
Lupin Ltd reported with varied return trend during the study period. This study also
signifies that companies like Sun Pharma, Cipla, Glenmark with strong brand reputation
were seems to be sustaining in the crisis period in spite of the general falling market
trend. This paper is strongly urge the need for backward integration and enhanced
research and development activities to Indian Pharmaceutical sector for ensuring their
sustainable long-run operations.
Several countries brought worldwide attention to the issue that it was a deadly new
disease and was spreading quickly. Globalisation increases the likelihood that an
infectious disease appearing in one country will spread rapidly to another, and outbreaks
of more serious diseases could cause catastrophic impacts on the global economy . The
impact of the corona virus pandemic on human society around the world is striking, not
just, because the disease spread
quickly across countries through global travel, but also because any economic shock to
one country quickly spread to others due to financial integration and globalisation. The
unfortunate situation created by the corona virus gives us a unique opportunity to gauge
the impact of an unexpected and dreaded disease on the economies of affected nations.
Coronavirus is deemed to be transmitted from animals to humans and first reported in
China in 2019 (Kothai & Arul, 2020) . At present, there is no existence of antiviral
drugs for the treatment of CoV infections (Yethindra, 2020) . The pharmaceutical sector
in India, which is overly dependent on China for ingredients and intermediary products
needed to make medicines. As an Impact of COVID 19, this industry is seriously facing
disruption of supply (Economic Times, 2020) . Line (2020) reported that about 70
percent of India's total activated pharmaceutical ingredients requirement is met by
imports from China. Whereas the stock market has witnessed panic sell-off of stocks as
the country has confirmed its first Covid-19 death and the number of positive cases in
the country neared 80 as on 13 March 2020.
Vishesh Phogaat(2020) : Indian pharma sector was exhibiting the major impact of
COVID-19 induced lockdown restrictions. It was evident that the acute segment and
chronic treatment segment was performing very low as a result of delay in surgeries in
the last few months. As a result of the lockdown there was a huge decline in surgeries
and that triggered a lower sale in injectable medicines. The pharma sector was showing a
weak trend in April -June quarter earnings. The Nifty Pharma index increased
significantly to 42% in the June quarter of the current fiscal as contrasted to a 10.8 per
cent fall in the March quarter of the last financial year. The impact of COVID-19 was
really harsh for every industry, the impact has somehow impacted the pharma industry as
well The colossal decline in the pharma industries was being witnessed by some big
players of this industry. Cipla’s sales declined by 28%. On the other hand,
GlaxoSmithKline, Dr Reddy Laboratories, Zydus Cadila were facing a downfall of 25 %
each. While in the domestic market, strong pre-buying was observed for chronic
medicines in the March end in an assumption of medicine scarcity and an extended
lockdown. Something different can be contrasted in the cardiac segment. This segment
observed 13% rise Year on Year. Along with cardiac segment anti-diabetic category
jumped 10%. That was really a commendable growth as per the situation is concerned.
Only these segments performed really well in the course of lockdown. Other big players
were facing through the heat of double-digit decline in sales. Supply chain at the global
level was severely affected. So this impact can be sustainable on a long term basis.
Although it can be stated that there is always a demand for chronic medicine in, so this
segment will bounce back soon. Analysts project that Cipla is best placed in the pharma
sector to sustain the covid-19 crisis. A well-diversified portfolio of this company is a
major reason for this sustainability in this time of unprecedented crisis.
Aravind & Manojkrishnan (2020), this research intends to analyze how the epidemic of
the Covid 19 affects the large pharmaceutical stocks mentioned on the Indian National
Stock Exchange. They picked ten leading pharmaceutical firms to be classified in the
NSE. These shares are focused purely on these businesses' stock valuation. The general
conclusion of this analysis is that pharmaceutical stocks reverse (opposite effect) the
general consumer pattern. The era of inquiry is split into the pre-crisis phase, and the
time of Covid-19. Information contains 123 average price reports from ten listed drug
firms. The time of research is from September 3, 2019 to February 28, 2020. Data from
the study suggest that the momentum impact is continuing as pharmaceutical stocks shift
according to the general benchmark. Only two firms, Aurobindo Pharma Ltd and Lupine
Ltd, registered separate patterns in returns during the study era. This study also indicates
that given the overall downturn in industry dynamics, businesses with excellent brand
reputations such as Sun Pharma, Cipla and Glenmark tend to be thriving in periods of
crisis. This essay encourages the Indian pharmaceutical industry to expand and improve
its R&D efforts in order to ensure its profitable operations in the long term. These
includes Cadila Healthcare with 9.2 per cent jump owing to the strategic focus on
domestic brand sales compliment earnings; IPCA Laboratories with an upside of 8.3 per
cent as steady performance in domestic formulations despite COVID and robust
formulation exports will surprise earnings growth positively; and Sun Pharmaceuticals
with an upside of 5 per cent.
The corona virus pandemic also involved a clear change in investors’ risk level
Economists have long observed that societal responses to health risks tend to be extreme
and inconsistent. The unfortunate situation created by the corona virus gives us a unique
opportunity to gauge the impact of an unexpected and dreaded disease on the economies
of affected nations The corona virus pandemic also involved a clear change in investors’
risk level Economists have long observed that societal responses to health risks tend to be
extreme and inconsistent. The stock prices are more volatile in the trading days during
some crisis periods than those during non-crisis periods. The evidence generated by these
empirical studies confirms that the investors would respond to the corona virus outbreak
through the adjustment of stock prices in several countries’ stock markets.

The announcement of the lockdown period for computing the abnormal returns (AR), for
each of the stocks, the average abnormal returns (AAR) of the sample of 5 companies
and the cumulative average abnormal returns (CAAR) around the date of stocks in the
sample. A comparison of pre-lockdown, and present lockdown period AAR% returns and
T statistics are calculated and compared.
The study undertakes to determine any significant positive AR associated with the
lockdown period around the event dates and the speed with which the information
relating to lockdown announcements is absorbed into the security prices in the market.
The study examines the extent of influence of the lockdown period due to COVID-19 on
the Indian stock market and the impact on the market sentiments between pre- and
present lockdown period.
This research covers daily returns data of ten leading pharmaceutical companies
enlisted with the NSE. They are Aurobindo Pharma Ltd, Cadila Healthcare Ltd, Cipla
Ltd, Divis Laboratories Ltd, Dr. Reddy’s Laboratories, Glenmark Pharmaceuticals Ltd,
Lupin Ltd, Sun Pharmaceutical Ltd, Torrent Pharmaceutical Ltd, and Wockhardt Ltd.
These companies were selected on the basis of their respective market capitalization.
The daily return data of the selected stocks from 3rd September 2019 to 28th February
2020 was duly considered for this research. It consists of 123 daily price observations
of 10 pharmaceutical companies (i.e., 123*10 observations) listed with NSE. Likewise,
the NIFTY return for the above time period was also calculated.

For a better representation of results, the performance of pharmaceutical stocks from

September 2019 to November 2019 was taken as the pre-crisis period. It consists of 64
daily price observations, each of 10 companies. As mentioned in the literature
coronavirus first reported in China in November 2019, thereby we have classified the
price observations from December 2019 to February 2020 as a crisis period, even
though still the crisis has not settled. For this, we have taken the remaining 59 daily
price observations of each company. This is on the presumption that the available
period is only good enough to observe the short- term impact of COVID-19 on
pharmaceutical stocks.

Chris kay The “performance reflects continued profitable business growth in a market
that is gradually recovering from the impact of the global pandemic,” Shanghvi said in a
statement. “Most of our businesses have done well -- our global specialty sales have
continued to show an improving trend and have crossed pre-Covid levels.” The Covid-19
outbreak has also helped drive gains in sector stocks in 2020 after two years of muted
returns, with investors betting on the possibility of India emerging as a key player in
vaccine development and global supply. The S&P BSE Healthcare Index advanced 61%
last year, the most among the nation’s sector sub-indexes and the best for the gauge since
2009. However, it’s down more than 4% so far this year, compared with Sun’s 1.8%
decline in the same period.
Ben hobson Shares in Torrent Pharmaceuticals are currently trading at 2627.15. But to
assess whether the price is likely to fall or rally over the next 12 months, we need an
objective way of telling whether it's able to withstand economic shocks and ride out
market volatility. To do that, it's worth looking at the profile of the stock to see where its
strengths are.
Importantly, we're interested in finding impartial ways of looking at Torrent
Pharmaceuticals – something that takes emotion out of the analysis...Promisingly, there
are indications that it scores well against some important financial and technical
measures. In particular, it shows signs of being a high quality, strong momentum stock.
Research shows that high quality stocks tend to be resilient, cash-generating businesses
that can compound investment returns over time. Likewise, strong momentum in price
and earnings can be a pointer to positive trends that have the potential to continue.

Ujjval jauhari Cipla’s performance in the US market too has improved Cipla’s stock
surged nearly 8 per cent on Friday, following the recall of Albuterol — a respiratory
product by its competitor Perrigo, in the US — over concerns that some units may not
dispense properly because of clogging issues. This move is expected to benefit both
Cipla and Lupin. Cipla is estimated to gain additional $20 million sales during
September-December 2020 following the recall by Perrigo say analysts at a foreign
brokerage. Also there could be more gains beyond the period as company gains market
share and could lead to 4-6 per cent earnings upside feel analysts. Even if one goes
beyond this news, Cipla’s performance has seen improvement and prospects look equally
good. Even as India’s pharmaceuticals market (IPM) continues to see pressure on growth
because of Covid-led disruptions, Cipla has impressed the Street with its outperformance.
In August, the drug major recorded 8.4-per cent growth, as against 2.2-per cent decline in
the IPM, on the back of a strong chronic portfolio and Covid-19 management drugs. The
IPM decline in August was driven by 5.3-per cent contraction in the acute segment, while
chronic drugs grew by 4.8 per cent year-on-year.
Dr Reddy's Laboratories expects its overall performance to be "quite volatile" in the
current fiscal with uncertainties related to COVID-19 set to increase during the period,
the company said in its Annual Report for 2019-20.Commenting on the outlook for North
American Generics (NAG) business, the company said its current priority includes
accelerating new product launches and increasing the market share of existing products.
The strategy is to significantly expand portfolio and ensure the right cost structures for
products to be able to compete in this highly competitive market, the drug firm noted.
Stocks like Dr Reddy’s, Cipla and Cadila Healthcare have already gained 10-14% this
month so far.
Nifty Pharma, which has climbed 4% in April so far, has now beaten the benchmark
Nifty index for two consecutive months. Analysts expect pharma stocks to keep climbing
and outperform Nifty over the medium term.
Nifty Pharma ended 2020 up 61%, outpacing the Nifty’s 15% rise. However, in January
and February, it lost 6% and 2% respectively as the covid curve appeared to have
flattened out. This month so far, the index has gained around 4%, while the Nifty is down
about 3%.

Sun Pharma
Sun Pharmaceutical Industries' stock has given 62.6 per cent return so far this year since
January 30. The scrip of the firm with a market capitalisation of Rs 1,18,644.18 crore
touched a 52-week high of Rs 512.55 on June 9. The stock hit a low of Rs 315.2 on
March 23. Sun Pharma reported a 37.12 per cent decline in its consolidated net profit to
Rs 399.84 crore for the quarter ended March 2020, mainly on account of one time
exceptional loss.

Dr. Reddy’s Pharma

The stock has given 59.7 per cent return since January 30. The share price of the
company with market capitalisation of Rs 65,491.68 crore hit a 52-week high of Rs
4189.35 on June 10. The stock hit a low of Rs 2,623 on March 19. Dr Reddy's
Laboratories reported a 75.92 per cent year-on-year (YoY) rise in consolidated net profit
at Rs 764.2 crore for the March quarter.

Cipla
The company with Rs 51,641.66 crore valuation has given stock market investors a
return of 95.1 per cent in the given period. The share price hit a 52-week high of Rs 696
on June 22. The stock hit a low of 356.75 on March 13. Cipla reported a 33.32 per cent
year-on-year (YoY) drop in consolidated net profit at Rs 238.49 crore for the March
quarter.
Torrent Pharma
Torrent Pharmaceuticals' stock has given a return of 51.6 per cent. The stock of Rs
40,924.63 crore company hit a 52-week high of Rs 2679.45 on April 9. The stock hit a
low of Rs 1,767 on March 19. Torrent Pharmaceuticals reported a consolidated net profit
of Rs 314 crore for the quarter ended March 31, mainly on account of cost control and
productivity improvements.

Cadila Healthcare
Cadila Healthcare stock has given 62.4 per cent return so far this year since January 30.
The scrip of the firm with a market capitalisation of Rs 36,245.60 crore touched a 52-
week high of Rs 383.65 on June 15.  The stock hit a low of Rs 236.3 on March 12. Cadila
Healthcare reported a 14.82 per cent decline in consolidated net profit to Rs 391.90 crore
for the quarter ended on March 31, 2020.
In the two COVID-19 vaccine candidates from India, ZyCov-D vaccine by Zydus Cadila
recently received approval for human clinical trials from the Drug Controller General of
India (DGCI). It has got the nod for Phase II, III trials.
CHAPTER-3
 OBJECTIVES

 To understand how the stock market functions and the performance of Pharma
sector on their stock prices.
 To understand the impact of during and pre pandemic on the stock focusing on
Pharma industry.
 To perform the fundamental analysis of the top 5 companies of the Pharma sector
CHAPTER -4
RESEARCH METHODOLOGY

CHAPTER-5
 DATA INTERPRETATION

Sun Pharma Cipla Torrent Pharma Dr Reddy Zydus Cadilla

(cr) (cr) (cr) (cr) (cr)

Market Cap 161,991 76,343 47,381 87,283 65,192

Net Profit 2,130.70 3,350.66 1,116.77 2,186.40 1,476.20
Net Sales 12,803.21 13,900.58 8005.00 13,329 7,790.40

Impact of covid 19 0n diff erent pharmaceuti cals

Market Cap Net Profit Net Sales
161,991

87,283
76,343

65,192
47,381
13,900.58

13,329.00
12,803.21

8,005.00

7,790.40
3,350.66

2,186.40
2,130.70

1,476.20
1,116.77

Su n P h ar m a Cipla (c r ) To r r en t P h ar m a D r R ed d y (c r ) Zyd u s C ad i l l a
(c r ) (c r ) (c r )

ANALYSIS

Market capitalisation- Market capitalization is one of the most effective ways of

evaluating the value of a company. It is crucial for readers to understand that this
evaluation of a company's value is done based on a company's stocks. Essentially, this is
defined by the total market value of the outstanding shares of a company.
According to the market cap. The company leading is SUN PHARMA at ₹16,1991,
moving further we have DR. REDDY at ₹87283 and so on CIPLA at ₹76,343 and
ZYDUS CADILLA at ₹65,192 and TORRENT PHARMA at ₹47,831.

NET PROFIT- net profit is a company's total earnings after subtracting all expenses.

Expenses subtracted include the costs of normal business operation as well as
depreciation and taxes. Net profit is commonly referred to as a company's “bottom line”
and is a true indicator of a company's profitability. Well as depreciation and taxes. Net
profit is commonly referred to as a company's “bottom line” and is a true indicator of a
company's profitability.
According to the net profit, company leading is CIPLA at ₹3350, moving further we
have DR. REDDY 2186.40 at ₹ and so on SUN PHARMA at ₹2130.70 and ZYDUS
CADILLA at ₹1476.20 and TORRENT PHARMA at ₹1116.77.
.
NET SALES- Net sales is the result of gross revenue minus applicable sales returns,
allowances, and discounts. Costs associated with net sales will affect a company's gross
profit and gross profit margin but net sales does not include cost of goods sold which is
usually a primary driver of gross profit margins.
According to the net profit, company leading is CIPLA at ₹13900, moving further we
have DR. REDDY at ₹13329 and so on SUN PHARMA at ₹12803.21 and TORRENT
PHARMA at ₹8005 and ZYDUS CADILLA at ₹77790.40

Referring to the above analysis, the conclusive result is that Covid -19 has brought boon
to the pharmaceutical companies mentioned above and bane to the same hand –in –hand.
As CIPLA is justifying in net profit and net sales the other side we have SUN PHARMA
is leading the market capitalisation.

Shareholding Pattern
Sun Pharma

Analysis :
Study of the shareholding pattern of a company is a very important part of fundamental
analysis. The shareholding pattern is a determinant of the market capitalization of the
stock and is an indicator of whether the stock valuation is justified or not. The
Shareholding Pattern of Sun Pharmaceutical Industries Ltd. presents the Promoter's
holding, FII's holding, DII's Holding, and Share holding by general public and others.
Promoters unpledged 0.39% of shares in last quarter. Total pledge stands at 8.62% of
promoter holdings. Promoters holding remains unchanged at 54.48% in Mar 2021 qtr.
FII/FPI have decreased holdings from 12.19% to 11.67% in Mar 2021 qtr. Number of
FII/FPI investors increased from 741 to 762 in Mar 2021 qtr. Mutual Funds have
increased holdings from 10.99% to 11.93% in Mar 2021 qtr. Number of MF schemes
remains unchanged at 42 in Mar 2021 qtr. Institutional Investors have increased holdings
from 33.03% to 33.29% in Mar 2021 qtr.
Cipla

Analysis :
Study of the shareholding pattern of a company is a very important part of fundamental
analysis. The shareholding pattern is a determinant of the market capitalization of the
stock and is an indicator of whether the stock valuation is justified or not. The
Shareholding Pattern Cipla Ltd. presents the Promoter's holding, FII's holding, DII's
Holding, and Share holding by general public and others. Promoters have increased
holdings from 36.7% to 36.73% in Mar 2021 qtr. FII/FPI have increased holdings from
22.08% to 23.25% in Mar 2021 qtr. Number of FII/FPI investors increased from 1056 to
1072 in Mar 2021 qtr. Mutual Funds have decreased holdings from 15.58% to 14.64% in
Mar 2021 qtr. Number of MF schemes decreased from 275 to 262 in Mar 2021 qtr.
Institutional Investors have increased holdings from 40.03% to 40.43% in Mar 2021 qtr.
Torrent

Analysis :
Study of the shareholding pattern of a company is a very important part of fundamental
analysis. The shareholding pattern is a determinant of the market capitalization of the
stock and is an indicator of whether the stock valuation is justified or not. The
Shareholding Pattern Torrent Pharmaceutical Ltd. presents the Promoter's holding, FII's
holding, DII's Holding, and Share holding by general public and others. Promoters
holding remains unchanged at 71.25% in Mar 2021 qtr. FII/FPI have decreased holdings
from 11.96% to 11.37% in Mar 2021 qtr. Number of FII/FPI investors decreased from
490 to 464 in Mar 2021 qtr. Mutual Funds have decreased holdings from 6.9% to 6.47%
in Mar 2021 qtr. Number of MF schemes decreased from 29 to 26 in Mar 2021 qtr.
Institutional Investors have decreased holdings from 20.04% to 19.71% in Mar 2021 qtr.
Dr Reddys

Analysis :
Study of the shareholding pattern of a company is a very important part of fundamental
analysis. The shareholding pattern is a determinant of the market capitalization of the
stock and is an indicator of whether the stock valuation is justified or not. The
Shareholding Pattern Dr Reddys Laboratories Ltd. presents the Promoter's holding, FII's
holding, DII's Holding, and Share holding by general public and others. Promoters have
increased holdings from 26.73% to 26.74% in Mar 2021 qtr. FII/FPI have decreased
holdings from 29.13% to 29.03% in Mar 2021 qtr. Number of FII/FPI investors
decreased from 807 to 738 in Mar 2021 qtr. Mutual Funds have increased holdings from
13.28% to 13.31% in Mar 2021 qtr. Number of MF schemes increased from 40 to 41 in
Mar 2021 qtr. Institutional Investors have increased holdings from 43.85% to 43.94% in
Mar 2021 qtr.
Cadila Healthcare

Analysis :
Study of the shareholding pattern of a company is a very important part of fundamental
analysis. The shareholding pattern is a determinant of the market capitalization of the
stock and is an indicator of whether the stock valuation is justified or not. The
Shareholding Pattern Cadila Healthcare Ltd. presents the Promoter's holding, FII's
holding, DII's Holding, and Share holding by general public and others. Promoters
holding remains unchanged at 74.88% in Mar 2021 qtr. FII/FPI have decreased holdings
from 5.24% to 5.23% in Mar 2021 qtr. Number of FII/FPI investors increased from 247
to 253 in Mar 2021 qtr. Mutual Funds have decreased holdings from 7.54% to 6.41% in
Mar 2021 qtr. Number of MF schemes remains unchanged at 28 in Mar 2021 qtr.
Institutional Investors have decreased holdings from 17.15% to 16.72% in Mar 2021 qtr.

FUNDAMENTAL ANALYSIS
RATIO ANALYSIS
LIQUIDITY RATIOS :

t ratio is the most common ratio

for measuring liquidity. It
represents the ratio of
current assets and current
liabilities. It is also called working
capital ratio. It is calculated
by dividing current assets by
current liabilities
t ratio is the most common ratio
for measuring liquidity. It
represents the ratio of
current assets and current
liabilities. It is also called working
capital ratio. It is calculated
by dividing current assets by
current liabilities
rrent ratio is the most common
ratio for measuring liquidity. It
represents the ratio of
current assets and current
liabilities. It is also called working
capital ratio. It is calculated
by dividing current assets by
current liabilities.
Current Ratio –
The current ratio that measure the company ability to pay off its current liabilities with its
current assets such as cash, accounts receivable and inventories. The higher the ratio the
better the liquidity position.

LEVERAGE RATIOS :

Debt to Equity Ratio –

The debt / equity ratio is a measure of the relationship between the equal contributed by
creditors and the capital. the ratio is used to evaluate a company financial leverage. A
high debt to equity ratio indicates that a company may not be able to generate enough
cash to satisfy its debt obligations however low debt to equity ratios may also indicate
that a company is not taking advantage of the increased profits that financial leverage
may bring .

TURNOVER RATIOS :

Asset Turnover Ratio –

The Asset turnover ratio (TATR) measures the value of a company sales or revenues
relative to the value of its assets the asset turnover ratio can be used as an indicator of the
efficiency with which a company is using its assets to generate revenue.
The higher the asset turnover ratio the more efficient a company conversely if a company
has a low asset turnover ratio it indicates it is not efficiently using its assets to generate
sales.
CHAPTER-6
 FINDINGS

CHAPTER-7
CONCLUSION

CHAPTER-8
LEARNINGS

REFERENCES

APPENDIX