Bangladeshi Company Financial Analysis

Executive Summary:
In this competitive market of Bangladesh to sustain and being profitable is necessary. To do so, a
company must focus on its well management of financial assets and keep satisfying its
stockholders to. This report is based on our experience, academic knowledge and mostly based
on the secondary data. In the beginning of this report we select Ten Bangladeshi Company of
any sectors who are listed in Dhaka Stock Exchange they are Beximco Pharma LTD, Squre
Pharma, Renata Pharma LTD,ACI LTD, IBN SINA Pharma, Grameenphone, Lafarge Surma
Cement, Olympic Industries, Apex Footwear, BATA Shoe and discuss about their financial
condition . Than the report briefly discuss about the companies overview. After the overview, this
report discusses about the companys financial performance based on profitability ratios. The
report also mentions some suggestions which will help the department and the organizations as a
whole to perform better than before. After that the report calculates the companys stock price for
five years.
Profitability Ratios:
Profitability ratios designate an organization's overall efficiency and performance. It measures
how to use of organizations assets and control of its expenses to generate an acceptable rate of
return.
Net Profit Margin:

A ratio of profitability calculated as net income divided by revenues, or net profit divided by
sales. It measures how much out of every dollar of sales a company actually earns. This is also
known as profit margin. Higher the profit margin, better the condition of the firm. Higher profit
margin means that higher portion is remaining as profit after the selling activity takes place. So it
also indicates towards efficient expense controlling ability. Increased earnings are good, but an
increase in sales does not mean that the profit margin of a company is improving. For instance, if
a company has costs that have increased at a greater rate than sales, it leads to a lower profit
margin. This is an indication that costs need to be under better control.
Formula: = ()
Return on asset (ROA)

Return on asset is an indicator of how profitable a company is relative to its total assets. ROA gives
an idea of how competent management is at using its assets to generate earnings. It is calculated by
dividing a company's annual earnings by its average total assets, ROA is displayed as a percentage.
Sometimes this is referred to as "return on investment". The assets of the company are comprised of
both debt and equity. Both of these types of financing are used to fund the operations of the company.
The ROA figure gives investors an idea of how effectively the company is converting the money it
has to invest into net income. The higher the ROA number, the better, because the company is
earning more money on less investment.
Formula: ()=
Return on Common Shareholders Equity (ROE)

Return on Equity or ROE is the ratio of net income to total shareholders equity. It measures how
much a firm earns from the shareholders equity. It also shows the firms efficiency at generating
profits from every dollar of equity capital. Increasing ROE indicates improved performance. In
accounting sense, ROE is the true bottom line of performance measurement.
Formula: ()=
Earnings per Share (EPS)

Earnings per share or EPS express the earned profit against each share. It is considered as an
important tool while measuring a companys stock performance. Investors often judge
organizations with the EPS and always prefer a high EPS. However, always high EPS does not
mean that the firm is doing well because the net income can be manipulative which makes the
EPS overestimated. Often organizations do these in order to attract more public investments. So,
relying only on EPS is never a wise decision. Another important point is, same EPS of two (02)
firms do not indicate that the firms are equally strong; here we need to judge which firm has
earned same EPS by less investment. The firm which has done so is in better position and more
efficient than the other.
Formula: ()=
Price-Earnings (P-E) Ratio:

A valuation ratio of a company's current share price compared to its per share earnings. The P-E
ratio actually represents the expectation of investors about the firm. Higher P-E means that
investors have high expectations about the firms future growth and thats why they are interested
to invest. P-E ratio also sometimes indicates how much the investors are willing to pay for each
dollar of earnings. So, in this case it is referred as multiple. The average P-E ratio is 20-25 times.
Comparing P-E ratio within firms of same industry gives the idea of which firm is performing
well.
Formula: = ()
Stock Price Calculation (dividend discount model)

A company's worth - its total value - is its market capitalization, and it is represented by the
company's stock price The dividend discount model this valuation method is passed on the
theory that a company's stock price should be derived from the present value of all of its future
dividends. To calculate the valuation of a stock based off its dividends, the most commonly used
equation is the Gordon growth model, which looks like this
Formula: Stock price = Dividend k (Interest rate) G (Growth rate)
Beximco Pharma LTD

Net profit margin = Net Income / Net Sales Revenue
2013
2014
1404762780 10490699094 =13.9%
1528297573 11206885677 =13.64%
()=
2013
2014
1406104399 27470751802=5.11 %
1529264605 29000525961=5.27%
()=
2013
2014
1404762780 19775552465 =7.1%
1529264605 20920185325=7.30%
Earnings per share (EPS)

2013
2014
3.82
4.15
= ()
2011
2012
2013
2014
2015
47.20 3.82
=12.35
58.70 4.15=
14.14
Stock price of Beximco Pharma LTD

Stock price = Dividend k(Interest rate) G(Growth rate)
Year
Face
Value
Dividend
(%)
2010
10
20
2011
10
21
2012
10
2013
2014
Growth Rate
Interest Rate
Dividend(TK)
0.0564
0.05
2.1
15
0.0447
1.5
10
10
0.0544
41.99
33.5570469
8
18.3823529
4
10
10
0.0694
14.4092219
0.01
Stock Price
35.4609929
1
Square Pharmaceuticals Ltd.

Net profit margin = Net Income / Net Sales Revenue
2013
2014
4106630847 20202005922 = 20.32%
4946205162 23268413217 = 21.0%
()=
2013
2014
4106630847 27551671215 =14.9%
4946205162 31046074531 = 15.93 %
()=
2013
2014
4106630847 22586225346 =18.18%
4946205162 26739581929 = 18.49%

2013
2014
8.74
10.26
= ()
2013
2014
1428.74=16.2
221 10.26=21.53
Stock Price of Square Pharmaceuticals Ltd

= Dividend k(Interest rate) G(Growth rate)
Year
Face
Value
Dividend
(%)
2011
10
30
2012
10
25
2013
10
2014
2015
Growth Rate
Interest Rate
Dividend(TK)
Stock Price
0.0564
53.19
0.05
2.5
49.95
25
0.0447
2.5
55.92
10
30
0.0544
55.14
10
30
0.0694
43.22
0.05
ACI Limited
Net profit margin = Net Income Net Sales Revenue
2013
2014
764187906 10683600712 =7.15%
950713609 12318723190= 7.71%
()=
2013
2014
764187906 14693912974 = 5.2%
950713609 15526192783 = 6.12 %
()=
2013
2014
764187906 5637252251= 13.5 %
950713609 6606685402= 14.3%

2013
2014
22.27
27.65
= ()
2013
2014
10722.27= 4.80
268 27.65 =9.69
Stock Price of ACI Limited
Stock price = Dividend {k(Interest rate) G(Growth rate)}
Year
Face
Value
Dividend
(%)
2010
10
2011
Growth Rate
Interest Rate
Dividend(TK)
Stock Price
120
0.0564
12
212.76
10
80
0.05
160
2012
10
80
0.0447
178.97
2013
10
85
0.05
0.0544
8.5
156.2
2014
10
100
0.15
0.0694
10
143.94
IBN SINA Pharmaceutical Ltd.

2013
2014
87176811 2208718088 =3.95 %
127278420871768112678909367=4.75 %
()=
2013
2014
871768111096432108= 7.95 %
127278420 1195179560= 10.65%
()=
2013
2014
87176811 673589787 = 12.9%
127278420 679344704 =18.7%

2013
2014
4.08
5.95
= ()
2013
77.41 4.08 = 18.9
2014
78 5.95 =13.10
Stock Price of IBN SINA Pharmaceutical Ltd.
Stock price = Dividend {k(Interest rate) G(Growth rate)}
Year
Face
Value
Dividend
(%)
2010
10
2011
Growth
Rate
Interest
Rate
Dividend(TK)
Stock Price
10
0.0564
17.73
10
10
0.05
20
2012
10
15
0.05
0.0447
1.5
33.50
2013
10
25
0.1
0.0544
2.5
45.85
2014
10
30
0.05
0.0694
43.17
Grameenphone(GP)
2011
2012
2013
2014
2015
19,052,697,592
89,006,700,775
=21.4 %
17,354,535,376
91,488,936,343
=18.9 %
14701574
96624227
=12.2 %
19803283
102663372
=19.3%
18840106
104,754,372
=17.9 %
()=
2011
2012
2013
2014
2015
19,052,697,592
108,598,705,728
=17.5%
17,354,535,376
116,884,755,319
=14.8%
14701574
135220644
=10.87%
19803283
130672825 =
15%
18840106
132,449,567
=14.2%
()=
2011
2012
2013
2014
2015
19,052,697,592
38,918,310,334
=48.9%
17,354,535,376
35,343,195,369
=49.1%
14701574
31140570
= 47.2%
19803283
31364502
=63.1%
18840106
30,625,258
=61.5%
2011
2012
2013
14.11
12.85
10.89
2014
14.67
2015
14.59
= ()
2011
2012
2013
2014
2015
152.5014.11
=10.80
164.0012.85
=12.76
190.20 10.89
=17.46
352.19 14.67=
24.0
247.0014.59
=16.92
Interpretation:
We have calculated Net profit margin, ROE, ROA, EPS, Price earnings ratio of Grameenphone
in the year of 2011 to 2015. Finding suggest that Grameenphone maintain a pretty stable net
profit margin in last five years the ratio reached highest in 2011 which indicates that the
company is more efficient at converting sales into actual profit. The ROA of Grameenphone is
going upward and downward in recent years which indicate that the company is trying to
managing its assets to produce greater amounts of net income. But if you look at the ROE they
maintain a pretty high ROE ration because of their huge net income that indicates the company
has played a good performance. The EPS of Grameenphone is not so good compare to the other
ratio in recent year which indicates that companys trying to control its economical situation
.Grameenphone is maintaining stable high P-E ratio in recent past. The rate reached to its highest
level in 2014 which indicates that their earning is increased yearly. Overall the companys
financial position is good
Stock Price of Grameenphone(GP)

Year
Face
Value
Dividend
(%)
2011
10
2012
Growth Rate
Interest Rate
Dividend(TK)
Stock Price
205
0.0564
20.5
363.47
10
140
0.05
14
280
2013
10
140
0.0447
14
313.19
2014
10
160
0.0544
16
293.91
2015
10
140
0.0694
16
230.54
0.2
lafarge surma cement

2010
2011
2012
2013
2014
5059385,655,374
=8.9%
1485055 10640061
=13.9%
1150048
6098478
=18.8%
1991914
11330374=
17.5 %
1672202
11583029= 14.4
%
()=
2010
2011
2012
2013
2014
50593816,558,697
=3.0%
1485055 17534987
=8.4%
1150048
17473596 =6.5 %
1991914
17833447=11.1
%
1672202
18166906=9.
20 %
()=
2010
2011
2012
2013
2014
5059384229044
=11.9 %
1485055 9012942
=16.4%
1150048
10468218
=10.9%
1991914
5373315
=37.0 %
1672202
4615259
=36.2 %
2010
2011
2012
2013
2014
0.58
1.00
1.28
1.79
1.49
= ()
2010
2011
2012
2013
2014
31.86 0.58
=54.93
25.60 1.00
=25.6
31.90 1.28
=24.92
31.721.79 =
17.72
122.92 1.49
=82.49
Interpretation:
We have calculated Net profit margin, ROE, ROA, EPS, Price earnings ratio of Lafarge surma
cement in the year of 2010 to 2014. Finding suggest that Lafarge surma cement maintain a lower
net profit margin in last five years the ratio reached highest in 2012 then suddenly it decrease due
to increase in cost. The ROA of Lafarge surma cement is looking poor in last five year which
indicates that their performance is not good. But if you look at the ROE they maintain a pretty
high ROE ration because of their huge net income that indicates the company has played a good
performance. The EPS of Lafarge surma is also poor in recent year which indicates that
companys economical situation is not good .Lafarge surma cement is maintaining a high P-E
ratio in recent past. The rate reached to its highest level in 2014 which indicates that their earning
is increased yearly. Overall they are struggling to maintain an impressive figure in rest of the
profitability ratios but still they are at a good position in the market.
Stock price of lafarge surma cement

Year
Face
Value
Dividend
(%)
Growth Rate
Interest Rate
2010
0.0564
2011
0.05
2012
0.0447
2013
0.0544
2014
10
10
0.0694
Dividend(TK)
Stock Price
14.40
Renata LTD
2010
2011
2012
2013
2014
851,428,5325,090,3
18,113=16.7 %
1,090,634,0416,519
,639,234=16.7%
1,247,275,330
6,519,639,234
=19.31%
1393928731
8757405748
=15.9%
1720208645
11107281260 =
15.48 %
()=
2010
2011
2012
2013
2014
851,428,5325,132,28
4,238 =16.5%
1,090,634,0417,69
1,601,900 =14.1%
1,247,275,330
9,753,077,971=12.
7%
1393928731
12782413204
=10.9 %
1720208645
14493568729
= 11.86 %
()=
2010
2011
2012
2013
2014
851,428,5322971470
944 =
28.65%
1,090,634,0413958
608036
=27.5%
1,247,275,330
5070479748
=24.59%
1393928731629
5114611
=22.1 %
1720208645
7750713063
=22.1 %
2010
2011
2012
7.74
48.14
43.83
2013
39.38
2014
38.77
= ()
2010
2011
2012
2013
2014
12,942.75
37.74=342.94
1,20548.14
=25.03
739.50 43.83
=16.87
722 39.38
=18.33
984 38.77
=25.38
Interpretation:
We have calculated Net profit margin, ROE, ROA, EPS, Price earnings ratio of Renata LTD in
the year of 2010 to 2014. Finding suggest that Renat Ltd maintain a pretty good net profit
margin in last five years the ratio reached highest in 2012 then suddenly it decrease due to
increase in cost. The ROA of Renata is looking decent in last five year which reached peak 2010
but then gone down because of reduction on net asset. But if you look at the ROE they maintain
a pretty high ROE ratio because of their huge net income that indicates the company has played a
good performance. The EPS of Renata is Steady. It may not be too high but could be useful and
reliable for investors as often high EPS signifies manipulation on net income. Renata is
maintaining a low P-E ratio in recent past. The rate reached to its highest level in 2010 but
drastically declined afterwards and came down to 18.33 in 2013, which is way lesser than the
benchmark of 20-25 but it increased in 2014.which indicates that in 2014 the company has
increased its earning. Overall they are struggling to maintain an impressive figure in rest of the
profitability ratios but still they are at a good position in the market.
Stock price of Renata LTD

Year
Face
Value
Dividend
(%)
2010
10
2011
Growth Rate
Interest Rate
Dividend(TK)
Stock Price
60
0.0564
106.38
10
60
0.05
120
2012
10
60
0.0447
134.22
2013
10
75
0.15
0.0544
7.5
137.71
2014
10
80
0.05
0.0694
115.22
Olympic Industries Limited

2011
2012
2013
2014
2015
25621299260
03342018
=4.2%
465219732
388510182
4=11.9%
615357060
7093179369
=8.6%
869036213
7922333876 =
10.9 %
1094340489
8996,148,594=
12.1 %
()=
2011
2012
2013
2014
2015
256212992
1850322260
= 13.8%
465219732
2591236306
=17.9%
615357060
3693672553
=16.6 %
869036213
5048637186
=17.2%
1094340489
5763679785
=19.3%
()=
2011
2012
2013
2014
2015
256212992
743,408,956
=34.4%
465219732
1168,606,460
=39.8 %
615357060
1731722645 =
35.5 %
869036213
2522397546
=34.4 %
1094340489
3381654099
=32.3 %

2011
2012
2013
2014
2015
4.90
8.91
5.24
5.48
6.90
= ()
2011
2012
2013
2014
2015
181.80 4.90
=37.10
127.l4 8.91
=14.26
167 5.24
=31.98
222.58 7.39 =30.11
234.766.90
=34.02
Interpretation:
We have calculated Net profit margin, ROE, ROA, EPS, Price earnings
ratio of Olympic Industries in the year of 2011 to 2015. Finding suggests that Olympic industries
Ltd maintain a decent net profit margin in last five years the ratio reached highest in 2015. The
ROA of Olympic industries is looking pretty good in last five year which reached peak which
indicates that the company has earned more money on less investment. But if you look at the
ROE they maintain a pretty high ROE ration because of their huge net income that indicates the
company has played a good performance. The EPS of Olympic industries is Steady. It may not
be too high but could be useful and reliable for investors as often high EPS signifies
manipulation on net income. Olympic industry is maintaining a high P-E ratio in recent past. The
rate reached to its highest level in 2011 which indicates that in the company has increased its
earning in recent years. Overall the company is maintain a stable financial condition
Stock price of Olympic Industries Limited
Year
Face
Value
Dividend
(%)
2011
10
2012
Growth Rate
Interest Rate
Dividend(TK)
Stock Price
10
0.0564
17.73
10
10
0.05
20
2013
10
10
0.0447
22.37
2014
10
20
0.1
0.0544
36.66
2015
10
30
0.1
0.0694
43.12
Footwear Limited Apex

2011
2012
2013
26101119394 25885494997483
265633182
99256667=2.7
78905=2.6%
10940035731 =
%
2.4 %
()=
2011
2012
2013
2014
2015
203094736
11463903303 =1.7 %
153771240394
0819128=3.9%
2014
2015
26101119331 25885494927405
265633182
203094736
153771240122
07424737=8.3
01092=9.4%
9574539218 =2.7 12387620391=1.63% 60374314=1.25
%
%
%
()=
2011
2012
2013
2014
2015
26101119320
78500972=12.5
%
25885494922867
30921=11.3%
265633182
2496114103
=10.6 %
203094736
2637333839 =7.7 %
153771240259
0736480=5.9%

2011
2012
2013
2014
2015
23.20
23.1
23.61
18.05
13.67
= ()
2011
2012
2013
2014
2015
295.57 23.20
=12.74
231.1023.1
=10.0
416.35 23.61 =
17.63
443.49 18.05
=24.57
342.20 13.67
=25.03
Interpretation:
We have calculated Net profit margin, ROE, ROA, EPS, Price earnings ratio of Apex footwear
LTD in the year of 2011 to 2015. Finding suggests that BATA SHOE (Bangladesh) LTD maintain
low net profit margin in last five years the ratio reached highest in 2015. The ROA of Apex
footwear is looking poor decent in last five year which reached peak 2012 but then gone down
but stable because of reduction on net asset. But if you look at the ROE they maintain a pretty
stable ROA ratio because of their huge net income that indicates the company has played a good
performance. The EPS of Apex footwear is Steady but decline year by year. This means the
company is profitable in the beginning and its profits decline year by year the company has more
profits to distribute to its shareholders. Apex P/E ratio pretty stable and decent in recent years
which indicated positive future performance and investors are willing to pay more for this
company's shares. But the overall financial condition of Apex footwear is not so good
Stock price of Footwear Limited Apex

Year
Face
Value
Dividend
(%)
2011
10
45
2012
10
50
2013
10
55
2014
10
2015
10
Growth Rate
Interest Rate
Dividend(TK)
Stock Price
0.0564
4.5
79.78
0.05
0.05
99.95
0.05
0.0447
5.5
122.99
55
0.0544
5.5
101.10
50
0.0694
72.04
BATA Bangladesh LTD

2010
2011
2013
2014
2015
410350076
4225746633
=9.71%
433066228
4856338164
=8.91%
8130835647878
975170
=10.3%
700670101
8076995037
=8.6%
831,744,531
8522,801,619
=9.75%
()=
2010
2011
2013
2014
2015
410350076
3056956651
=13.42%
43306622835624
31994
=12.15%
813083564
4610437455
=17.6 5%
700670101
4666747196
=15.0 %
831,744,5315,2
36,593,585
=15.88%
,
()=
2010
2011
2013
2014
2015
410350076
1322457853
=31.02%
433066228
1611884081
=26.86 %
813083564
4610437455
=17.6 5%
700670101
4666747196
=15.0 %
831,744,53129
65008424
=28.05%
,

2010
2011
2013
2014
2015
30.00
31.60
59.44
51.22
60.80
= ()
2010
2011
2013
2014
2015
642.40 30.00
=21.41
58831.60
18.60
690 59.44 =
11.60
117.10 51.22 =22.8
1317.7060.80
=21.67
Interpretation:
We have calculated Net profit margin, ROE, ROA, EPS, Price earnings ratio of BATA
SHOE(Bangladesh) LTD in the year of 2010 to 2015. Finding suggests that BATA SHOE
(Bangladesh) LTD maintain low net profit margin in last five years the ratio reached highest in
2013 but in 2015 it suddenly increase because the firm has earned more profit by delivering
goods. The ROA of BATA SHOE is looking decent in last five year which reached peak 2013 but
then gone down but stable because of reduction on net asset. But if you look at the ROE they
maintain a pretty high ROA ration because of their huge net income that indicates the company
has played a good performance. The EPS of BATA SHOE is Steady and high. This means the
company is more profitable and the company has more profits to distribute to its shareholders.
Bata P/E ratio is moving upward and downward in recent past but in 2014 and 2015 it tries to
stable the ratio at a higher rate which indicated positive future performance and investors are
willing to pay more for this company's shares.
Stock Price of BATA Bangladesh LTD
Year
Face
Value
Dividend
(%)
2010
10
250
2011
10
250
2012
10
2013
2014
Growth Rate
Interest Rate
Dividend(TK)
Stock Price
0.0564
25
443.26
0.01
0.05
25
499.99
275
0.25
0.0447
27.5
614.96
10
300
0.25
0.0544
30
551.22
10
280
0.0694
28
403.45

Bangladeshi Company Financial Analysis

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Bangladeshi Company Financial Analysis

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Executive Summary:

Net Profit Margin:

Return on asset (ROA)

Return on Common Shareholders Equity (ROE)

Earnings per Share (EPS)

Price-Earnings (P-E) Ratio:

Stock Price Calculation (dividend discount model)

Beximco Pharma LTD

1404762780 10490699094 =13.9%

1528297573 11206885677 =13.64%

1404762780 19775552465 =7.1%

Earnings per share (EPS)

Stock price of Beximco Pharma LTD

Square Pharmaceuticals Ltd.

4106630847 20202005922 = 20.32%

4946205162 23268413217 = 21.0%

4106630847 27551671215 =14.9%

4946205162 31046074531 = 15.93 %

4106630847 22586225346 =18.18%

4946205162 26739581929 = 18.49%

Earnings per share (EPS)

Stock Price of Square Pharmaceuticals Ltd

764187906 10683600712 =7.15%

950713609 12318723190= 7.71%

764187906 14693912974 = 5.2%

950713609 15526192783 = 6.12 %

764187906 5637252251= 13.5 %

950713609 6606685402= 14.3%

Earnings per share (EPS)

268 27.65 =9.69

Stock Price of ACI Limited

Stock price = Dividend {k(Interest rate) G(Growth rate)}

IBN SINA Pharmaceutical Ltd.

Net profit margin = Net Income Net Sales Revenue

87176811 2208718088 =3.95 %

127278420 1195179560= 10.65%

87176811 673589787 = 12.9%

127278420 679344704 =18.7%

Earnings per share (EPS)

Stock Price of IBN SINA Pharmaceutical Ltd.

Stock price = Dividend {k(Interest rate) G(Growth rate)}

Earnings per share (EPS)

Stock Price of Grameenphone(GP)

lafarge surma cement

Earnings per share (EPS)

Stock price of lafarge surma cement

Earnings per share (EPS)

Stock price of Renata LTD

Stock price = Dividend k(Interest rate) G(Growth rate)

Olympic Industries Limited

Earnings per share (EPS)

222.58 7.39 =30.11

Stock price of Olympic Industries Limited

Stock price = Dividend k(Interest rate) G(Growth rate)

Footwear Limited Apex

Earnings per share (EPS)

Stock price of Footwear Limited Apex

BATA Bangladesh LTD

Earnings per share (EPS)

117.10 51.22 =22.8

Stock Price of BATA Bangladesh LTD

Stock price = Dividend k(Interest rate) G(Growth rate)