Financial analysis on Beximco Pharmaceuticals Limited

Abstract

This internship report is based on my internship experience, academic knowledge and mostly based on the secondary data. In my internship tenure, I have worked on the Accounts & Finance department of Beximco Pharmaceuticals Limited (BPL). It was a great opportunity to experience and gather knowledge about different aspects of an organization, specially the tasks related to accounts and finance. Based on the suggestion of my academic supervisor, I have chosen the topic “Financial Analysis on Beximco Pharmaceuticals Limited”. In the beginning, this report discusses about the pharmaceuticals industry of Bangladesh and its current situation. Than the report briefly discusses about Beximco Pharmaceuticals Limited as a whole. After the overview, this report discusses about the Accounts & Finance department of BPL in a nutshell and later on deliberates about my internship experience and job responsibilities during the internship period and the strengths and weaknesses of the department that I have observed during my stay at BPL. The report also mentions some suggestions which will help the department and the organization as a whole to perform better than before. In the financial analysis part, the report discusses about the current investment situation of BPL where, the report mentions the positive and threatening aspects of investing in BPL shares. Furthermore, I have conducted an industry analysis where I have deliberated the financial ratios of BPL and compared it with its two (02) of the strongest competitors, Square Pharmaceuticals Limited and Renata Limited. I have also came up with some reasons behind the fluctuations of BPL’s ratios. Later on the financial analysis part, I have made an equity analysis where I have mentioned the calculating procedure of Operating Cash Flow (OCF), Project Cash Flow and Net Present Value (NPV). After that, I have calculated the intrinsic and market price of the shares of BPL for the sake of comparison and later on came up with the reasons behind the overvaluation of shares of BPL. Before concluding the report, I have conducted a TOWS analysis through which I have recommended some overall actions to BPL based on its current strengths, weaknesses, industry opportunities and industry threats.