Brand
Fundamental analysisAccumulated customer trust that reduces the perceived risk of buying.
In plain terms
Worth something only if it lets the company charge more or sell more easily. Otherwise it is just a logo.
1678 terms
Glossary
Every term is defined twice: once the way a filing would put it, and once the way somebody would explain it to you across a table. The second one is usually the one that sticks.
Showing 12 terms
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Branded generics
Fundamental analysisOff-patent medicines sold under a company’s brand name and promoted to doctors — the structure of the Indian pharma market.
In plain terms
The same molecule can sell under dozens of brands. Growth depends on doctors prescribing yours, which is why sales forces matter.
Ceiling price
Regulation & taxThe maximum price at which a scheduled formulation may be sold, computed by the National Pharmaceutical Pricing Authority as the simple average of the prices to retailer of brands above a 1% share of that formulation, plus a notified 16% retailer margin.
In plain terms
It is revised annually against the wholesale price index — an index with no connection to what the company paid for its active ingredient. That asymmetry is the whole structural feature of price control.
Intangible asset
AccountingA non-physical asset such as a brand, patent, licence or software.
In plain terms
Amortised over a useful life, unlike goodwill, and sometimes saleable on its own.
Para IV filing
Regulation & taxAlso called: Paragraph IV, First-to-file
A US generic application claiming the brand’s patent is invalid or not infringed.
In plain terms
The first company to file one can win 180 days of exclusivity, when prices stay far higher — usually after a patent fight.
Royalty to parent
Fundamental analysisA fee, usually a percentage of sales, that an Indian subsidiary pays its foreign parent for brands or technology.
In plain terms
A related-party payment that moves profit from Indian minority shareholders to the parent. Watch for increases in the rate.
Barriers to entry
Fundamental analysisThe obstacles that prevent a new competitor from entering an industry and competing away its returns.
In plain terms
High returns are what attract entrants, so only a barrier stops the process. A licence, a network, a trusted brand or enormous capital qualifies; everything else is a delay.
Book value per share
Fundamental analysisAlso called: BVPS
Net worth divided by the number of shares outstanding.
In plain terms
The anchor of a lender’s valuation, because its assets are financial and its return is earned on the capital base. For a business whose value sits in brands or people it says very little.
DuPont analysis
Fundamental analysisDecomposing ROE into net margin, asset turnover and equity multiplier.
In plain terms
Tells you whether a high ROE comes from brand power, operational speed, or just debt.
Price cap
Fundamental analysisA statutory or regulatory limit on the maximum price at which a good or service may be sold.
In plain terms
Where one applies, competitive strength stops being a pricing question — the brand cannot buy a rupee above the notified figure. Volume, mix and cost position are the only levers management still holds.
Trading symbol
Market basicsAlso called: Ticker, Ticker symbol, Scrip code, Symbol
The short code an exchange assigns to a security so it can be quoted and ordered — the BSE uses a six-digit scrip code for the same purpose.
In plain terms
The name on the board outside. It changes when a company rebrands or moves segment, which is why it is not what settlement relies on.
Volume growth
Fundamental analysisAlso called: Underlying volume growth, UVG
Growth in the quantity sold, as opposed to growth in revenue.
In plain terms
The FMCG number that shows whether brands are winning. Revenue can rise on price alone while the company sells no more than last year.