Fundamental Analysis - About the Products

How are the future prospects of the Product / service ?

The difference between the previous case and the present case is not so Big. The specific product / Material / Service present status may be nil, but in future growth prospects can be seen considerably. Expected Huge Profits can be obtained / Assumed. So that the stocks price may hike, which can be purchased. 

For Example :

Future Prospects of Pharmaceutical Industry :

The Indian pharmaceuticals market is expected to reach US$ 55 billion in 2020 from US$ 12.6 billion in 2009. This was stated in a report title "India Pharma 2020: Propelling access and acceptance, realizing true potential" by McKinsey & Company. In the same report, it was also mentioned that in an aggressive growth scenario, the pharma market has the further potential to reach US$ 70 billion by 2020 

Due to increase in the population of high income group, there is every likelihood that they will open a potential US$ 8 billion market for multinational companies selling costly drugs by 2015. This was estimated in a report by Ernst & Young. The domestic pharma market is estimated to touch US$ 20 billion by 2015. The healthcare market in India to reach US$ 31.59 billion by 2020. The sale of all types of pharmaceutical drugs and medicines in the country stands at US$ 9.61 billion, which is expected to reach around US$ 19.22 billion by 2012. Thus India would really become a lucrative destination for clinical trials for global giants. 

There was another report by RNCOS titled "Booming Pharma Sector in India" in which it was projected that the pharmaceutical formulations industry is expected to prosper in the same manner as the pharmaceutical industry. The domestic formulations market will grow at an annual rate of around 17% in 2010-11, owing to increasing middle class population and rapid urbanisation. Read More in Future Prospects of Indian Pharma Industry.