Alkem Labs –

Key highlights from FY 24 –

Continues to rank no 1 in Anti Infectives, No 2 in Vit/Min space in India

India business contributes to 68 pc of sales, grew by 5.4 pc

US business contributes to 21 pc of sales, grew by 10 pc

Rest comes from RoW mkts ( LATAM, Australia, EU ), grew strongly at 33 pc

Cash on Books @ 3550 cr

Anti-Infectives mkts were sluggish throughout FY 24, which affected company’s India performance. However, the company continued to do well in Anti-Diabetic, GI, Vit/Minerals and Derma therapies

Lesser pricing pressures in US and descent volume growth in US + RoW business helped improve overall gross margins. Company believes that the worst of pricing pressures in the US business should now be behind

Company’s domestic biosimilar business ( under its Subsidiary – ENZENE ), with 7 brands continues to ramp up well

Aim to grow revenues by 10 pc in FY 25 with stable gross and EBITDA margins ( with an upward bias )

Capex lined up for FY 25 @ around 600 cr

Expecting the anti-invectives mkt to pick up in FY 25 ( as FY 24 was exceptionally weak for this segment ). If this happens, company may outperform its guidance

30 pc of company’s India products are under NLEM

Company has the largest trade generics business in the country. At the same time, the branded generics business continues to do well. Company believes, both can do well simultaneously

As the company’s chronic business ramps up in India, Margins should improve further over the medium term

Launched 3 new products in US in FY 24. Going to launch 6 new products in US in FY 25

Expect to maintain 4.5 of sales as R&D expenses going fwd

Setting up a Bio-Similars plant in US under its Bio-Similars subsidiary – ENZENE. It’s mainly going to engage in contract manufacturing operations. Expect it to contribute meaningfully from FY 27. Capex required here should be around 400 cr

MR productivity for the company is 4.5 lakh / month. On the chronic business side, its about 3.5 lakh / month – clearly there is a lot of headroom to improve the productivity here

Company’s share of Chronic business is low at present @ 18 pc. There is a huge scope of improvement here. Expect it to cross 20 pc in next 2-3 yrs

Total MR strength for the company is around 12000

Trade generics contribute to around 20 pc of company’s India business

Company is working on another 5 biosimilars to be launched in India under its subsidiary – ENZENE

Cash on books – in all likelihood to be used to inorganic acquisitions – specially in the Chronic segment. Actively looking out for the same

Company is setting up a new business division – to manufacture medical devices. Will update investors as the business goes commercial. Focus here will be on the domestic Mkts to begin with

Disc: holding, Biased, Not SEBI registered

Considering the minimum requirement of purchasing a minimum of 0.5% of share capital of a stock, how can we initiate bulk buy? Does the broker like Zerodha automatically report it to the exchange ?
Also, considering low float, I am not able to get equivalent amount of sellers to buy that many lots.
How to proceed in this situation?

Hi everyone,

I wanted to start a discussion about a recently listed company in the SME sector, GP Eco Solutions. They are making strides in organized distribution, driving India towards a sustainable future through their robust solar business.

Company Overview

GP Eco Solutions specializes in delivering solar energy products. Their goal is to make top-tier global solar products readily available in the Indian market through a network of Solar System Integrators, Channel Partners, and Installers. They offer three main products:

• Solar Panels
• Solar Inverters
• Storage Solutions

Key Financial Metrics

• Market Cap: ₹437 Cr.
• Current Price: ₹373
• High / Low: ₹434 / 368
• Stock P/E: 118
• ROCE: 41.6%
• ROE: 57.8%

Discussion Points

1. Valuation: Given the current P/E ratio of 118, how do you all perceive the valuation of GP Eco Solutions? Is it justified based on their growth potential and financial performance?
2. Future Prospects: With their focus on solar energy, what do you think about the future of GP Eco Solutions in the rapidly growing renewable energy sector in India?
3. Financial Stability: Looking at their operating margins and net profits, do you think they have the financial stability to sustain and grow in the long term?
4. Market Position: How well do you think GP Eco Solutions is positioned against other players in the solar energy market in India?

I’m really interested in hearing your thoughts and insights on GP Eco Solutions.

HAL is one of the beneficiaries of customer duty exemption up to another 5 years on import of parts for its product

Dear @ranvir

Thank you for analysing a large number of companies and posting it for benefit of wider community.

Would you be able to give an update of your current portfolio and any exits/entry since last porfolio update? Which companies you recently invested based most recent quarter results or commentary?

Thank you once again.