Market sentiment assessment of investors on Bangladeshi Pharmaceutical Stocks incorporating multiples valuation approach

Abstract

The main objective of this report, in chapter-3, is to apply the market-based valuation approach on 5 prescription drugs-producing listed pharmaceutical companies from the Dhaka Stock Exchange, in order to comprehend the market sentiment of a specific time period, from the year 2018 to 2022 (June is the Year end for those companies). Along with the primary objective, there is another objective of this report which is Peer-to-peer comparison of these Bangladeshi pharmaceutical companies’ financial performance and growth potentials based on their historical trend analysis. Therefore, in order to carry put the market-approach valuations, secondary data have been collected from the financial statements of those companies’ annual reports for the past 5 years. Based on these data, key ratios also known as ‘multiples’ have been calculated that led to the methods of finding out the ‘implied’ share price of these companies. Moreover, comparisons have been carried out of these with the actual or market price of those companies’ shares. However, in chapter 2, the report has covered an overview of BRAC EPL Stock Brokerage Limited and its different aspects of its departmental functions, as well as experiences from the intern’s three-month role at research department of the company. Moreover, attempts have been made to compare BESL's growth strategy to those of other financial institutions operating within Bangladesh’s capital market industry.