Shuchi Nahar's Weekend Blog!

Important Segments to track growth for Pharma Companies Shuchi.P.Nahar Investments in the global pharmaceuticals sector to increase to over $1,400 billion over the next three years, driven by a number of new medicines. With healthy R&D spending going forward, the Contract Research and Manufacturing (CRAMS) segment offers growth opportunities to Indian companies .  Change in regulations around generic approvals will help Indian companies to increase penetration in Chinese markets, which will improve margin expansion.  What are CRAMS ?  CRAMS is defined as the process of outsourcing research services/ product manufacturing activities to organizations which can provide the service at a low cost. CRAMS basically consists of the following two activities: contract research and contract manufacturing. CRAMS is mainly used in the Pharmaceutical and Biotechnology sectors that require extensive R&D and large-scale manufacturing facilities. It is expected that the demand for c

Growth Outlook of Pharmaceutical Sector! Key Points to Know. SHUCHI.P.NAHAR The Indian market is impossible to ignore, given its economic prospects. Foreign companies view India as a potential significant contributor of future sales and are ramping up their investments in the country accordingly. India’s domestic market looks promising for global pharma looking to launch new products.  The country’s growing capabilities in contract manufacturing, R&D and clinical trials also make it a preferred outsourcing partner for global pharma at every stage of the value chain. So what strategy should foreign pharmaceutical companies eager to enter the country or expand their existing operations adopt?   The growth trajectory for the Indian pharmaceutical industry is likely to remain at 10-13 percent in 2020-21 despite challenges, according to rating agency ICRA. The expected growth in the next financial year is on the back of healthy demand from the domestic market given incre

How Banks make Money through Credit Cards? SHUCHI.P.NAHAR   To understand how credit cards works, which customer segments it serves, what it offers to its customer segments, and how does it makes money from them, we need to get familiar with few terms. Credit cards classifies the banks as either Issuers or Acquirers. Issuers issue cards to the cardholders, whereas the Acquirers manage the relationship with the merchants. The diagram below explains what happens behind-the-scenes when a cardholder presents a card for payment to a merchant. What types of risk bank accepts? Bank usually accepts three types of risk  1) Credit  2)Liquidity  3)Interest rate and they get paid   to take on the risk. Managing credit risk Credit risk is the core part of the lending business . investors can get a sense of a banks credit quality by examining its balance sheet , loan categories , trends in non performing loans and charge off rates as well as managements lending philosophy.

In-depth understanding of Important Financial Formula and Ratios Twitter: shuchi_nahar What are Financial Ratios? Financial ratios are created with the use of numerical values taken from financial statements to gain meaningful information about a company. The numbers found on a company’s financial statements – balance sheet, income statement, and cash flow statement – are used to perform quantitatively analysis and assess a company’s liquidity, leverage, growth, margins, profitability, rates of return, valuation, and more. Return on Assets (ROA) ROA tells an investor how much Profit or Return a company generated for each Rupee of Assets. The formula for Return on Assets ROA = Earnings/Assets Alternatively, this can also be expressed as ROA = (Earnings/Sales) x (Sales/Assets), or Formula Dissection ROA = Net Margin x Asset Turnover The first component of Return on Assets is simply Net Margin or Net Income divided by Sales. It tells us how much of each Rupee of Sa