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Square

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Submitted By pluspoint
Words 5647
Pages 23
Parvez M Chowdhury
Analyst: Pharmaceuticals and Consumer Goods

parvez@bracepl.com

Square Pharmaceuticals
DSE: SQURPHARMA Bloomberg: SQUARE:BD
52-week Price Range (BDT) Current Price 12-month Target Price Cash Dividend BDT Total Return Number of Shares MM Free Float Average daily volume MM BDT BDT mn Net Sales Ops Income Net Income Margins Gross Margin Operating Margin Net Margin Growth Revenue Growth Operating Profit Growth Net Profit Growth Per Share BDT EPS Dividend Book Value/Share Cashflow BDT mn NC Working Capital Capex Dividend Valuation P/E P/B ROE Miscellaneous BDT mn Total Debt Cash Debt/Equity 2,841 - 4,362 3,092 3,850 42 26% 20 46% 184.1

Rating: OUTPERFORM February 24, 2010
Leading the Bangladesh Pharmaceutical Industry
Investment positives

Square Pharmaceutical Limited (SPL) is the largest pharmaceutical company in Bangladesh, with the largest domestic market share of 19.3%, in what is a highly competitive pharmaceuticals market. Return on equity has been improving, gradually moving up to 19% for the last couple of years. Margins have been improving steadily. SPL currently boasts one of the highest gross margins (51%) in the industry. Massive expansion significantly. plan, which will increase current capacity

2010A 2011E 2012E 12,971 15,663 19,141 3,326 2,497 3,858 3,358 4,764 4,251



2010A 2011E 2012E 51% 22% 17% 51% 21% 18% 51% 21% 19%





2010A 2011E 2012E 10% 14% 21% 21% 16% 34% 22% 23% 27%



SPL has been gearing up to transform itself into a big exporting company focusing on attaining certifications from regulators of developed markets. SPL has been one of the most resilient stocks in the face of severe market correction among all the stocks in BRAC EPL coverage universe.

2010A 2011E 2012E 127 35 660 171 42 831 217 53 1047



2010A 2011E 2012E 4,024 1,493 483 4,867 1,471 528 5,621 1,923 827

2010A

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