Term paper

On
PORTFOLIO of Renata Limited

P Pr re ep pa ar re ed d f fo or r

Course Instructor
MBA Program
F Fa ac cu ul lt ty y o of f B Bu us si in ne es ss s
ASA University
Fall 2013


Prepared by
Tusar Patwary


Date of Submission

January 18, 2014, 2010


January 18, 2014
Name
Course Instructor
ASA University

Subject: Submission of the Term Paper

Dear Sir,
We are pleased to submit the group term paper: Portfolio Analysis of Renata Limited that you have
asked me to prepare in an effort to better understand different Financial Analysis techniques. The topic
shall enable me to comprehend how Market value of the stock of any company is a more reliable indicator
of that companys performance rather than the book value.


We hope this case study on a specific company; in this case Renata Limited shall be accepted by you as
my term paper.


I greatly value the opportunity you gave me.


Sincerely,






Objective of the Report:

The objective of this report is to get the knowledge about a financial statement of a company. By doing
this report we have learned how to analyze a financial statement and also how to compare it with other
companies. Which we think will help us in our future work like. The report includes year to year analyze,
Index number trends analyze, Ratio analysis etc.
Methodology:

In order to construct the reliable report, we have followed standard research methodology to extract our
findings. We have applied sophisticated data analysis techniques to get consistent and sound output. We
have gathered the secondary data from various sources of information e.g. Dhaka stock exchange, internet
etc. We arranged the data consecutively. We analyze the data and place them under appropriate heading,
put wise description and analytical and logical reason and consequently we had been able to draw a
constructive end to this report.
Scope of the Report:

Although we had a great experience of doing this report like how to analyze the data & compare it,
understand the financial statements of a company etc. But we think there was also some more scope to
learn. We could expand the analysis with some more years to come across more appropriate ending.



Limitations:

There may be some crucial barrier behind this report. While doing this report we had to face some
problematic obstacles due to which we were slightly stumbled but we put highest effort to break through
these hurdles. The limitations of the reports are as follows
We did not have concrete experience for preparing the report on such significant issue. There
was a deficiency of accurate and precise information;
Another major barrier which was quite tough to break is time constraint. We had insufficient
time advantage and problem of co-ordination.
Relevant data and document collection were difficult to the organization confidentiality.
No availability of data in a systematic way.
Organizations websites do not contain enough information.

Renata Ltd. - An Overview
The Company started its operations as Pfizer (Bangladesh) Limited in 1972. For the next
two decades it continued as a highly successful subsidiary of Pfizer Corporation. However,
by the late 1990s the focus of Pfizer had shifted from formulations to research. In accordance
with this transformation, Pfizer divested its interests in many countries, including Bangladesh.
Specifically, in 1993 Pfizer transferred the ownership of its Bangladesh operations to local
shareholders, and the name of the company was changed to Renata Limited The Company is in
the business of manufacturing, marketing and distribution of Pharmaceuticals, animal health
medicines, nutritionals and vaccines. Medicines and health care Products Regulatory Agency,
UK has issued a certificate of GMP compliance of a manufacturer to Renata Limited for its
potent products facility at section 7, Mirpur, Dhaka for a period of 3 years from 4
th
May 2007. Its
manufacturing plant received ISO-9001 in 1999 for the general facility.

Company Profile:

Year of Incorporation
1972 as Pfizer Laboratories (Bangladesh) Limited, subsidiary of Pfizer Corporation, USA

Change of Name
1993 Renamed as Renata Limited after divestment of shareholdings by Pfizer Corporation, USA

Field of Business
Manufacturing, Marketing & Distribution of Human Pharmaceuticals,
Animal Health Medicines, Nutritionals, and Vaccines

Contract Manufacturing
General products for UNICEF and SMC

MHRA Certificate
Medicines and Healthcare products Regulatory Agency, UK has issued a Certificate of GMP
Compliance of a Manufacturer to Renata Limited for our Potent Products Facility at section 7,
Mirpur, Dhaka

Marketing & Distribution Rights
Novartis Vaccines (Germany/Italy): Human vaccines
Evans Vanodine International (UK): Animal farm disinfectants
Zinpro (USA) & Biomin (Austria): Animal nutritional products
Bomac (New Zealand): Animal health products
Novus (USA): Animal health products
Indian Herbs Overseas
Blue Seas Life Sciences

Investment in Subsidiaries
99.99% Shareholding in Renata Agro Industries Limited
99.99% Shareholding in Purnava Limited














Other Information

SHARE DRISTRIBUTION


Director: Public: Government: Inst: Foreign:
51% 11. 91% 0% 14.66% 22.43%

EPS

Last Quarter: Annual
EPS:


P/E:
31.040 Q3 41.39 18.65

SECTOR DETAILS

Sector: Pharmaceuticals & Chemicals
Sector PE: 19.65
Sector Cap 247792669327.00
Sector Earnings: 12610064973.80
Sector Beta: 0.70

BASIC INFO


Lot: 50
No Of Securities: 35302343
Listing Year:
Reserve: 4953.36
Last AGM Held: 22/06/2013

Capital Details

Paidup Capital:
Market Capital:
353 M
27249.88 M
Trade % of 0.0735%
MCAP:
Public Securities 4204509
Public Cap 881M
Historical Performance:

Year EPS NAV NPAT
EPS
Ratio %Dividend %Dividend Yield
2013

2012 41.96 187.89 25B,60C 0.81

2011 47.08 187.99 25B,60C 0.50

2010 54.324 181.699 25B,60C 0.46

2009 456.52 1652.53 660.12 32.99 60C,25B 0.50

2008 379.21 1545.44 438.67 25.67 50C,25B 0.65

2007 371.39 1469.97 358.02 20.17 50C,20B 0.67

2006 301.41 1172.81 242.13 10.28 50C,20B 1.61

2005 287.66 1106.37 192.57 9.39 50C,20B 1.85

2004 260.79 1042.98 145.49 11.81 50C,20B 1.62

2003 227.07 1005.99 105.56 14.09 50C,20B 1.56

2002 156.09 960.52 72.56 7.79 50C 4.11

2001 144.62 817.24 67.23 4.49 40C 6.15

2000 80.79 712.63 37.56 7.83 30C 4.74

NAV=Net Asset Value, EPS= Earnings per Share, NPAT=Net Profit after Tax


October 29,2013 RENATA
(Q3): As per un-audited quarterly accounts for the 3rd quarter ended on 30th September 2013
(July'13 to Sep'13), the Company has reported consolidated net profit after tax (excluding non-
controlling interests) of Tk. 410.37 million with consolidated EPS of Tk. 11.62 as against Tk.
325.02 million and Tk. 9.21 respectively for the same period of the previous year. Whereas
consolidated net profit after tax (excluding non-controlling interests) was Tk. 1,095.89 million
with consolidated EPS of Tk. 31.04 for the period of nine months (Jan'13 to Sep'13) ended on
30.09.2013 as against Tk. 915.89 million and Tk. 25.94 respectively for the same period of the
previous year.

August 14, 2013 RENATA
The Company has informed that the Board of Investment Scrutiny Committee has approved US$
10.00 million foreign loan for Renata Limited with the interest rate of US$ LIBOR+4.5% p.a. for
5 years.

July 29, 2013 RENATA
(H/Y): As per un-audited half yearly accounts as on 30.06.2013 (Jan'13 to June'13), the
Company has reported consolidated net profit after tax (excluding non-controlling interests) of
Tk. 685.52 million with consolidated EPS of Tk. 19.42 as against Tk. 590.87 million and Tk.
16.74 respectively for the same period of the previous year. Whereas consolidated net profit after
tax (excluding non-controlling interests) was Tk. 329.66 million with consolidated EPS of Tk.
9.34 for the period of 3 months (Apr'13 to June'13) ended on 30.06.2013 as against Tk. 273.59
million and Tk. 7.75 respectively for the same period of the previous year.











Return and Risk Analysis
Here, we have calculated the monthly returns from June, 2013 till July, 2013. Based on the
monthly returns, average monthly return is calculated for both DSE General Index & Renata
Limited.
Beta Coefficient of RENATA =0.357616598989
Covariance = 1.76847542857
Variance = 4.94517154286
Weekly Data has been used for calculation
Data that are used to calculate the beta coefficient.
Date
Stock
Daily
Price
(Close)
Index
Daily
Price
(Close)
Excess
Stock
Returns
Excess
Market
Returns
31/7/2013 671.6 4,342.31 3.42% 0.72%
30/7/2013 649.4 4,311.14 -1.58% -0.42%
29/7/2013 659.8 4,329.39 6.45% 1.61%
28/7/2013 619.8 4,260.67 -0.50% -1.20%
25/7/2013 622.9 4,312.21 -1.39% -2.19%
24/7/2013 631.7 4,408.79 1.46% 4.37%
23/7/2013 622.6 4,224.36 -1.32% -3.08%
22/7/2013 630.9 4,358.65 0.00% -1.06%
21/7/2013 630.9 4,405.16 -3.96% -3.57%
18/7/2013 656.9 4,568.47 -0.05% -3.91%
17/7/2013 657.2 4,754.12 -2.16% -0.44%
16/7/2013 671.7 4,775.21 0.60% 0.83%
15/7/2013 667.7 4,736.04 -0.07% 2.88%
14/7/2013 668.2 4,603.46 -0.51% -1.73%
11/7/2013 671.6 4,684.48 -1.09% -1.80%
10/7/2013 679 4,770.49 -1.99% 1.85%
9/7/2013 692.8 4,683.76 2.20% 2.73%
8/7/2013 677.9 4,559.39 -2.07% 0.02%
7/7/2013 692.2 4,558.67 0.38% 0.36%
4/7/2013 689.6 4,542.32 -2.09% 0.87%
3/7/2013 704.3 4,503.27 -0.44% -0.05%
2/7/2013 707.4 4,505.37 7.47% 2.73%
30/6/2013 658.2 4,385.77 3.18% -0.90%
27/6/2013 637.9 4,425.48 2.49% -0.90%
26/6/2013 622.4 4,465.47 -0.80% 1.26%
24/6/2013 627.4 4,410.12 0.46% -0.40%
23/6/2013 624.5 4,427.99 0.81% -0.04%
20/6/2013 619.5 4,429.63 -1.76% -1.06%
19/6/2013 630.6 4,477.09 0.29% 2.07%
18/6/2013 628.8 4,386.50 -2.09% 0.29%
17/6/2013 642.2 4,373.62 0.11% -0.28%
16/6/2013 641.5 4,385.89 3.55% 2.01%
13/6/2013 619.5 4,299.66 -4.34% -0.67%
12/6/2013 647.6 4,328.48 0.34% 0.44%
11/6/2013 645.4 4,309.69 3.00% 1.01%
10/6/2013 626.6 4,266.63 4.50% 3.22%
9/6/2013 599.6 4,133.60 -2.01% -3.89%
6/6/2013 611.9 4,300.74 -0.67% -0.23%
5/6/2013 616 4,310.63 2.00% 2.08%
4/6/2013 603.9 4,222.95 -0.69% 0.15%
3/6/2013 608.1 4,216.60 1.59% 1.29%

Bangladesh Pharmaceutical Industry

Overview

The Bangladesh pharmaceutical sector is one of the fastest growing sectors in Bangladesh. In 2005, the
market size was $500M and it is expected to grow at 10% per annum. Domestically, Bangladesh firms
generate 82% of the market; locally-based MNCs account for 13% of the market and the final 5% is
imported. Although there are 235 pharmaceutical companies registered in Bangladesh, only around 85 are
actively producing drugs. The top 30-40 essentially capture almost the entire market, the top 10 capture
70% of the domestic market and the top two, Beximco and Square, capture over 25% of the market. The
Essential Drug Company is the only government-owned drug company and it is rather successful. Twelve
firms are listed in the stock exchanges in Dhaka and Chittagong.

Exports, as shown in Table One, below, are growing rapidly.

Table One
Bangladesh Pharmaceutical Exports in USD millions
i

FY1975 FY1980 FY1985 FY1990 FY1995 FY2000 FY2002 FY2003 FY2004 FY2005 FY2006
Pharmaceutical
Exports
0.37 0.15 0.04 0.12 2.74 5.61 6.60 9.05 12.69 21.26 27.54
Total Exports 382.6 749.3 934.4 1523.7 3427.5 5752.2 5986.1 6548.4 7603.0 8651.5 10,514.0
Pharmaceutical
exports as a % of
total exports 0.097% 0.020% 0.004% 0.008% 0.080% 0.098% 0.110% 0.138% 0.167% 0.246% 0.262%
Pharmaceutical
export growth
rate -59% -73% 200% 2183% 105% 18% 37% 40% 68% 30%

Table Two, on the next page, shows that the majority of exports are from Novartis/Sandoz.
Novartis/Sandoz has an EU certified plant in Bangladesh where APIs, excipients, and many of the
packaging components are imported and then the final product is exported. It is unclear if Novartis
exports are due to intercompany transfers or sales on the open market. Further research needs to be done
to see what percentage of the growth in exports is due to Novartis/Sandoz and what percent is due to the
rest of the industry.






Table Two
Recent Export of Some Bangladesh Pharmaceutical Firms
Company Export (USD) Year of Export
Novartis Bangladesh / Sandoz 12,820,162 2004-2005
Beximco Pharmaceuticals 1,400,000 2004
Square Pharmaceuticals 1,200,000 2004
Jams Pharmaceuticals 633,721 2000-2004
Jayson Pharmaceuticals 626,546 2004
The Acme Laboratory Co 600,000 2004
Eskayef Bangladesh 331,876 2004
Aristopharma 305,648 July 2004 June 2005
Renata 281,788 2004
Navana Pharmaceuticals 240,175 Sept 2003 June 2005
Aventis 223,999 2004
ACI 156,392 2004
Essential Drug Co 124,687 2004
Globe Pharmaceuticals 68,410 2005-2006
Opsonin Pharmaceuticals 34,109 2004

Bangladesh Pharmaceutical Marketplace

The Bangladesh pharmaceutical marketplace is predominantly a branded generic marketplace.
Pharmaceutical firms in Bangladesh can either sell to the private sector pharmacies, to the government
and its public health care facilities, or to international organizations operating in Bangladesh (e.g.
UNICEF). Government sales are not as profitable as private sector sales as the government pays less and
pays on consignment. Pharmaceutical firms still target the public facilities however as doctors working in
public facilities get to know drugs and then prescribe them in their private practices. And, as drugs are
not readily available at public facilities, patients receiving treatment at one still may go to a private
pharmacy to procure the required drugs. Without these connections, many firms would move more of
their attention to the private sector.

A visit to four pharmacies in Dhaka and ten pharmacies in the bordering Gazipur, Narayanganj,
Keranigonj and Manikgonj districts reveal that pharmacies sell from 200-22,000 types of medicines each.
Each type of medicine has one to twenty five possible brands. Large pharmacies reported buying
medicines according to sales trends e.g. what sells the most. Medium and small pharmacies reported
being linked with a medical doctor and thus sales are usually skewed towards that medical professionals
preferences. Most pharmacies are individual shops, though some chains are starting to develop, especially
in urban areas. On average, each pharmacy visited has 10-50 pharmaceutical firms that supply them
medicines on a daily basis. For example, Beximco Pharmaceuticals has 1,200 people visiting pharmacies
daily to take orders for drugs. Each pharmacy then recieves approximately 1215 Beximco shipments
per month. None of the pharmacies visited will keep restocking any medicine that they consider a slow
item. Small pharmacies report keeping a medicine for a maximum period of six months.

Although there are approximately 300,000 private pharmacies in Bangladesh, the government has only
26,000 pharmacies officially listed.

The rest are illegal pharmacies as they have no license / licensed
pharmacist on staff. Pharmacists have varying levels of education and many lack adequate training. For
example, while the four large urban pharmacies visited each had one professional pharmacist (with four
years of coursework), two of the medium-sized pharmacies visited had one person trained for one year
along untrained coworkers working as pharmacists. Rural pharmacists can have high school graduates
with approximately two weeks training. The Bangladesh Pharmacist Society is currently implementing
the first phase of a three-phased program to improve the skills of pharmacists. The three-phased program
should be complete in seven to eight years.

While about 95% of the consumers in big pharmacies visited purchase medicines with a prescription, as
few as 50% of people in medium and small pharmacies visited have a prescription. If people dont have a
prescription, they either come in and ask for a specific drug or come in and describe their ailment to the
pharmacist who then makes a diagnosis and recommends a drug on the spot. Popular products include
antibiotics of various levels, pain-killers, and gastric remedies. People purchase one to ten tablets or
capsules at a time. The amount purchased depends more on the financial capacity of the consumer than
on the required dose of medicine.

There are several brands of each drug on the market with variable levels of quality. In the urban areas,
the pharmacies visited tended to sell the higher quality brands whereas in more rural areas, the
pharmacies visited tended to sell lower quality, lower cost brands. The political sway of the district also
influenced the selection of brands as pharmacies tended to have brands associated with people who had
power in that district. Medium and small pharmacies reported stocking cheaper drugs as the consumers
cannot purchase expensive medicines. Pharmacies further away from the center of the city also had
increasingly more ayurvedic and herbal medicines.

Health Policy and I ndustrial Policy

The pharmaceutical sector sits at the intersection of health policy and industrial policy and, as such,
careful thought needs to be given as to how to balance potential tensions between these two sectors. For
health policy, the government wants to ensure a predictable supply of high quality, low cost medicines.
For industrial policy, the government wants to build up the domestic pharmaceutical industry.
Historically, Bangladeshs drug policy has probably succeeded more clearly as industrial policy than
health policy.

The World Bank conducted a study on pharmaceutical production in the developing world and concluded
that local production of medicines is often not feasible in the face of current realities of global trade, the
international economics of the pharmaceutical industry, and an assumed real need of national
governments to balance industrial policy and health policy. Many developing countries lack the business
environment to have a successful domestic pharmaceutical industry. Furthermore, countries have not had
the best success at improving access to medicines through building up a domestic industry.

The study also correlated the strength of a local industry with independent variables to determine what
factors enable a country to have a viable domestic industry. This work, however, was more of a research
agenda than an evidence-based conclusion and the criteria represent more statistical trends than exclusive
criteria. The identified criteria are:

1. Gross Domestic Product (GDP) greater than about $100 billion: Countries with greater than $5
billion dollars of pharmaceutical production (Sweden, Ireland, Korea, Russian Federation, India,
Brazil, Germany, and China) all have GDPs between than $100 billion a $1 trillion. South Africa,
with a GDP of $570 billion, sits on the lower end of this scale and has a barely viable
pharmaceutical industry, nationally or internationally. Again, these data are trends and not
exclusive criteria and there are exceptions: Cuba and Jordan both manage to maintain a viable
pharmaceutical industry without the hypothesized required size. The current Bangladesh GDP is
$69.02 billion.
2. A population greater than about 100 million: As the pharmaceutical industry is technology-
driven, not labor driven, large populations are only needed for the concentration effect i.e. the
greater the sheer number, the greater the size of the high-quality labor pool and the greater the
market to consume locally produced pharmaceuticals. However, many Eastern European countries
with populations significantly less than 100 million have viable pharmaceutical industries. The
current population of Bangladesh is 147 million.
3. Sufficient numbers of the population enrolled in secondary and tertiary education: The
pharmaceutical industry requires a base of highly skilled employees. Net secondary and tertiary
enrollment in Bangladesh and some other countries is highlighted in Table Three, below. While
Bangladesh almost matches India on secondary enrollment levels, Bangladesh falls behind in the
realm of tertiary education. Also, while the percentages are close, India and China have much
larger populations leading to a higher absolute number.

Table Three
Gross Enrollment Ratios in Selected Countries
ii

Country Bangladesh India China Global Average
Secondary 51.3% 53.5% 72.5% 61.4%
Tertiary 6.5% 11.8% 19.1% 18.6%

4. UNI DO competitiveness index greater than about 0.15: In 2003, UNIDO released a competitive
industrial performance index based on MVA (Manufacturing Value Added) per capita,
manufactured exports per capita, share of medium- and hi-tech activities in MVA, and share of
medium- and hi-tech products in manufactured exports. Generally, as a country moves upwards
on the competitiveness index scale, local production of pharmaceuticals increases. Bangladeshs
1998 score was 0.011, Indias was 0.054, and Chinas was 0.126.
5. A net positive pharmaceutical balance of trade: Countries with a positive pharmaceutical trade
balance are more likely to have sustainable local production above $1 billion. While, no one
country is completely self-sufficient in pharmaceutical drug production, some countries such as
India, China and Brazil are net exporters of medicines. Currently, even though domestic firms
generate 95% of domestic pharmaceutical sales, Bangladesh is a net pharmaceutical importer as
they import an estimated $189M of APIs and only export $30-$40M of finished product.
However, this picture is changing as more and more firms export.



















Technical Analysis
In finance, technical analysis is a security analysis methodology for forecasting the direction
of prices through the study of past market data, primarily price and volume. Behavioral
economics and quantitative analysis use many of the same tools of technical analysis, which, being an
aspect of active management, stands in contradiction to much of modern portfolio theory. The efficacy of
both technical and fundamental analysis is disputed by the efficient-market hypothesis which states that
stock market prices are essentially unpredictable


Chart: Technical Analysis of Renata Limited. Source: stock Bangladesh
Fundamental analysts examine earnings, dividends, new products, research and the like.
Technicians employ many methods, tools and techniques as well, one of which is the use of
charts. Using charts, technical analysts seek to identify price patterns and market trends in
financial markets and attempt to exploit those patterns.
Technicians using charts search for archetypal price chart patterns, such as the well-known head
and shoulders or double top/bottom reversal patterns, study technical indicators, moving
averages, and look for forms such as lines of support, resistance, channels, and more obscure
formations such as flags, pennants, balance days and cup and handle patterns.
Technical analysts also widely use market indicators of many sorts, some of which are
mathematical transformations of price, often including up and down volume, advance/decline
data and other inputs. These indicators are used to help assess whether an asset is trending, and if
it is, the probability of its direction and of continuation. Technicians also look for relationships
between price/volume indices and market indicators. Examples include the moving
average, relative strength index, and MACD. Other avenues of study include correlations
between changes in Options (implied volatility) and put/call ratios with price. Also important are
sentiment indicators such as Put/Call ratios, bull/bear ratios, short interest, Implied Volatility,
etc.
There are many techniques in technical analysis. Adherents of different techniques (for
example, candlestick charting, Dow Theory, and Elliott wave theory) may ignore the other
approaches, yet many traders combine elements from more than one technique. Some technical
analysts use subjective judgment to decide which pattern(s) a particular instrument reflects at a
given time and what the interpretation of that pattern should be. Others employ a strictly
mechanical or systematic approach to pattern identification and interpretation.
Contrasting with technical analysis is fundamental analysis, the study of economic factors that
influence the way investors price financial markets. Technical analysis holds that prices already
reflect all the underlying fundamental factors. Uncovering the trends is not what technical
indicators are designed to do, although neither technical nor fundamental indicators are perfect.
Some traders use technical or fundamental analysis exclusively, while others use both types to
make trading decisions.

Findings of the Report
Majors findings of the report are as follows

The employees of departments of Renata are very much co-operative and
interdependent to each other.
Renata Limited provide A complete set of financial statements includes a balance
sheet, an income statement, a cash flow statement, a statement showing either all
changes in equity or changes in equity other than those arising from investments by
and distributions to owners, a summary of accounting policies, and explanatory notes
There are positive relationship exists among assets, sales and net income.
Finance and Accounting department is one of the most important departments of
Renata, they are responsible to make profit for the organization.
The portion of debt in total asset and time interest earned is increasing.
The equity value per share of Renata is higer than its current market price per share.
The operating expenses of Renata have dramatically increased for the last five years,
which has a significant influence to lower the net income
Renata follows the batch costing method and collocate their factory overhead on the
basis of the total production of the batches. Renata uses pre determined factory
overhead for determining factory overhead early for costing purpose.
The entire department should be well informed regarding their goal and objectives. It is
essential to execute company objective into individual target.
There must be clear allocation of responsibilities , authority and accountability
The company should introduce more promotional activities.
The company should take initiative to develop an effective research and development
centre to get innovative ideas to capture the competitive market
Beximco Pharma is one the best and leading pharmaceuticals company in Bangladesh.
Beximco is pioneer Pharma company export Medicine to the abroad and earned many foreign
currency. Beximco Pharmaceuticals is a good growing company if they maintain the cost
production, relative cost in operating and made good and quality medicine then BPL will be
good position in the near future.



Recommendation of the Report:

The overall performance of RENATA shows a satisfactory position although they are
suffering last few years. It is not easy to recommend some suggestion to enhance the
performance level of the organization during two month practical experience in RENATA. I
have observed some shortcoming regarding operational and other aspects. On the basis of my
observation I would like to present the following recommendations:
Though RENATA has qualified employee in Finance and Accounting department, but
the organization should recruit some new employee to run this department smoothly.
RENATA should increase their equity capital in their capital structure, because debt
capital is already higher.
RENATA should utilize their assets properly by investing them in more profitable
projects as there liquidity is higher than actual need.
They should increase dividend per share that will serve as a promotional tool.
Contribution analysis for each of the product lines to optimize profit in light of demand
factors.
Effects to bring selling prices in line with costs having regard to competition and other
market factors.
They should minimize their financing expenses to make higher net profit. They should
maximize the average collection period and average payable period.
They should be careful about the market price of share, because the price of share
would decrease in future.
Standard set-up for staff and officers to minimize administrative overhead.
Provision for the training of officers and employees in modern management
techniques.
Necessary measures to be taken for the prompt seminars, advertisement and
promotional activities by the representatives.
In the face of todays global competition with open market operation, RENATA must
develop and retain the high achievers and motivated work force and equip them with
the latest skills and technologies


Conclusion:
In Bangladesh, Pharmaceutical sector is one of the most developed hi-tech sectors which are
contributing in the countrys economy. Pharmaceutical sector is one of the fast growing and most
developed scientific sector in Bangladesh. There are about 265 registered pharmaceutical companies
operating in Bangladesh pharmaceutical industry. The market is highly competitive. RENATA
succeeded in gaining trust and confidence of the doctors and patients all over the country.
From the overall analysis we see that the market value of Renata Limited is much higher than the book
value. It is a very good sign for a company. But it is better for Renata Limited because of the trends, for
last five years the data shows the market value is three to five times higher than the book value. They also
provide a good portion of their net income as dividend to the shareholders. Moreover, we all know that a
companys overall condition can measure by the market price of the share. Finally, the main thing is that
they are a lot of giant competitor in the market. So for make a stable and increasing growth of their
market price of share Renata Limited can look more on their liquidity position because they hold less cash
which might be very risky for Renata Limited and the field of inventory management issue they can be
more efficient. Despite of that few facts they are doing very good in the market as the market value is
higher than the book value which shows their business activity and trends is gaining more and more
investors trust.

Reference and Bibliography

1. Annual Report of Renata Limited
2. DSE website
3. http://www.renata-ltd.com
4. http://www.stockbangladesh.com
5. http://en.wikipedia.org/wiki/