Ritco Logistics company is not repaying their borrowings regularly while their loan is too much
I think that is one disadvantage

Was able to find the note by Prosus (Swiggy’s investor) that has H1FY24 data… the slowdown in revenue growth for Swiggy is astonishing.

I’m not sure how long will Swiggy continue to hold given the relatively poor economics when compared to Zomato.

SUN PHARMA –

Q3 results and concall highlights –

Sales – 12381 vs 11241 cr, up 9 pc

EBITDA – 3477 vs 3004 cr ( up 15 pc, margins @ 28 vs 27 pc )

PAT – 2561 vs 2181 cr, up 19 pc

Region wise sales break up –

India Formulations – 3778 vs 3391 cr, up 11 pc

US Formulations – 3973 vs 3465 cr, up 13 pc

EM Formulations – 2094 vs 2115 cr, down 2 pc

RoW Formulations – 1779 vs 1556 cr, up 13 pc

API sales – 466 vs 515 cr, down 9 pc

EMs include – Romania, Russia, RSA, Brazil, Mexico

RoW Mkts include – Western Europe, Japan, Canada, Israel, NZL, Australia

R&D expenses @ 824 cr, @ 7 pc of sales

Company is ranked No-1 in India with 8.5 pc Mkt share and 32 brands in top 300 brands. Top 10 brands contribute to 18 pc of India sales

Total manufacturing facilities @ 43. Formulations facilities @ 29, API facilities @ 14

Company’s speciality products contribute to 17 pc of company’s topline ( mostly coming from US ) and are growing at rates faster than company growth rates. Currently, the company has a basket of 26 speciality products

Speciality products include –

Illumya
Winlevi
Levulan
Absorica
Odomzo
Cequa
Bromsite
Xelpros
Yonsa
Sezaby
Kapspargo Sprinkle

Speciality products Pipeline –

Deuroxolitinib ( phase -3 completed )
Illumya for Psoriatic Arthritis ( phase – 3 )
Nidlegy ( phase – 3 )
MM- II ( phase -2 completed )
SCD-044 ( phase – 2 )
GL0034 ( phase – 2 )

Net cash on books @ Rs 8200 cr ( Ex – Taro ). Net cash including Taro @ 18,300 cr !!!

Launched 28 new products in India in Q3. Seeing good traction in the in-licensed products portfolio in India

Illumya, Cequa and Levulan grew strongly in Q3. Growth in US was partially offset by ongoing USFDA related compliance issues at Mohali, Halol plants. Launched 03 generic products in US in Q3

Brazil and Romania business grew strongly in Q3

Global Speciality sales grew 26 pc in Q3 to reach 2100 cr in Q3. This represents 17 pc of company’s topline

Generic Revlimid sales in Q3 in US were muted

Supplies from Mohali plant likely to ramp up over next few months. At sub-optimal levels currently

Nidlegy’s ( for Skin Cancer ) Phase – 3 data in Europe is very encouraging. It should be a significant product for the company going forward

In Q3 in India, company’s volume growth was around 7 pc which is far higher than IPM

Looking to in-license products in the GLP-1 category for India Mkts. GLP-1s should be important products going forward in India. GLP-1 products like Ozempic, Wegogy are global blockbusters

Disc : holding, biased, not SEBI registered

@Pragnesh thanks for sharing. what new stocks do you recommend at this point based on its valuation? Is it reasonable to enter the below stocks at this point of time?
Beta drugs
Pix transmission
Carysil
Apcotex
Astec
Paushak
Prevest denpro

This company is in a cyclical industry. Money is made by investing while PE is high, margins are low and selling when PE is low and margins are high.

Dec 23 OPM is 3%, TTM OPM is 5%, where as at the peak of the cycle it was 25%. Did some basic google searches – Based on an article in TOI in Dec 22, in FY25 there will be an oversupply of both BOPP and BOPET. BOPP capacity would be 1300KT against demand of 1075KT. BOPET capacity would be 1200KT against demand of 940 KT.

Assuming above data is correct, there will be pain for another 4-8 quarters, however with most companies starting to report ~80% reduction or negative PAT, it will be interesting to see if companies will put the expansion on hold, or might run in to financial issues. If that were to happen, well run companies will be set for next up cycle.

Is any one tracking this industry?