An interesting case of this company with the honest promoter having nearly 800 cr Mcap, 400 cr inventory and nearly 300 cr cash or equivalent, is this company available for free of cast? Disc invested.

In Q1-FY24, cattle feed segment has turned profitable. As the company doesn’t do any concalls, we could get some insights from Godrej Agrovet concall.

Few excerpts from concall:

Godrej Agrovet talking about increasing stake in KSE Ltd

Wave 3 cannot be smallest wave as compared to wave 1 and 5, so initially one can assume it will be at least be equal to wave 1.

This is another novice trying to explain.

Regards

Q1-FY2024 call notes

• Indian first then world – better magins
• Criticare and exports growth this year – will drive 15-20% EBITDA growth
• Capacity in navasari will be finished by end of 2024
• Healthcare mkt is 2.1Lcr and will grow to 7-8L cr in 9 years . Even if international market goes for a toss, Domestic market will have enough demand for us.
• Capex and running cost most imp for any plant
• Expertise and exp in lyophilised is will allow us to handle the HUGE capacity inc
• 35% cap utilisation in Penem block
• Interest costs on capex have pulled down margins
• R&D focus: Biologics in vaccine and new botulinum drug delivery systems
• Criticare:
  • made a comeback
  • Handling all New age infectives
  • Microcare – secondary line of oncology therapy
  • Primacare- rural
  • Increasing addressable mkt by new products^
  • RM sensitive products (Sparsh too). Growth therefore should be judged by volumes not profits. Last year prices were really volatile
  • 10-15% growth in value due to eventual erosion of prices and 30% growth in volumes
• Penem advantage
  • Capacity is 40% of indian need (UNSURE if I heard that right)
  • Lots of players produce powder penems but Gufic is unique as we have dual chamber bag, lyophilisation and powder filling machines. So offering is unique.
  • Dedicated block at navsari unlike others.
  • Will do backward integration to make bags as well for dual chamber bag
• R&D thought process: 4-5 core competencies in therapeutic, data analytics and medical experts forcast disruptive cahnge in 5-10 years. Info is international mkt. Try to create USPs like drug delivery systems . Back it up with with other factors: see what projects go off patents, new disruption, price pain points. Infra, marketing, sales must offer support to new products.
• In 3-5 years we bring down the cost to make the product affordable. Scale brings in financial viability.
• Indore will be the only major capex in next 2-3 years.
• 1024 docs have used Stunnox since launch 24 months ago
• GC margin in CMO: 30%
• GC 55% own business margin
• While one who controls API rules but Pricing in API is eroding so we are evaluating whether to drive deeper there or be happy with what we have.

Personal comment:
CEO Pranav is well versed with the pharma knowledge, strategy, and qualitative aspects of opportunities they are chasing. He refers Mr Rongta (CFO perhaps) for all questions that involve quantitative aspects. (No comments or judgement. Just an observation)

Hi harsh, Im sorry but I’m not tracking this company currently and its been long since i left following it so it would not be appropriate if i comment anything on it.