Is there a very specific threat that you are seeing in the competitiveness of any of your portfolio companies? Any evidence of that threat playing out? Just trying to learn more about this.
My opinion is that businesses would adapt.
Is there a very specific threat that you are seeing in the competitiveness of any of your portfolio companies? Any evidence of that threat playing out? Just trying to learn more about this.
My opinion is that businesses would adapt.
The company has never had such margins in its history. In my opinion over the long term, they are not sustainable. Unless they have fundamentally changed something about the business. For example usually building a transformer is a labour intensive process. Especially when the transformer has to be customised.
So unless they have suddenly figured out how to automate more of the building process, I am not sure if margins can sustain.
Is these margin are sustainable going forward ? , any one has view please respond not able to confirm this.
Anyone think its time to Ai proof their portfolios Just saw the new version of ChatGpt and its already way better than what it was last year.
Being optimistic on AI and vice-versa pessimistic on humans, its time to get rid or at least think hard about what AI could replace in a portfolio. I took a look at mine (lot of IT and finanicals) and very few passed the AI sniff test.
Only Eicher Motors and Supreme Inds look safe. Safe because they actually deal with “physical” objects. I also feel the AI fear could have something to do with the run up in “physical” stocks like mining, shipping, etc - nmdc, hindcopper, geship etc to name a few. Yep, AI still doesn’t synthesize gold or copper.
For year end, all the companies are given a time limit of 60 days viz. 30th May.
Beyond that penalty of 5k per day.
So Half year H1 (SME) or Quarter 1,2,3 (rest) are given 45 days
but for H2 or Q4 viz March Quarter, this rule is not applied because there in Audited Financials are given for the full year whereas rest all are technically audited but are just assurance from auditor.
If OPM is halfed,Mean reversion will take place-It is at the lowest ever margins for now
Why Bank Of India is unseen by most of the investors?
Satin Management has provided guidance indicating a significant decrease in Return on Assets (ROA) for the current fiscal year compared to the previous one. This is attributed to a slowdown in disbursements and an increase in stressed loans, particularly in Punjab. Should we interpret this as a sign of growth topping out and a deterioration in asset quality? This pattern has occurred multiple times in the past, and it seems the market is already factoring it in. As I’m not an expert in this sector, I would highly appreciate expert view on this matter.
Con Call Notes from Q4-FY24. CMP 154
EBITA Margin 17%
Interest cost not coming down in Q4 despite 1000 cr debt reduction in Q3-
Capex of $87 million
Dahej capex is likely to come onstream by Q1-25
Investment in key starting material, debottlenecking for CHG
Capex will be similar to last year in FY25.
Innovative business 50%. Grown by 20 CAGR over last 3/4 years
40% of the order book is for integrated services (orders for more than one site)
Once biotech funding improves, growth will come back from emerging companies. This is not reflected in the current guidance
Visibility is higher than last year as compared to last yearly
Due to nature, PPL high inventory during Q1-Q3 but it goes off as proudct is shiiped to clients.
Peptide- Generic business is doing well and working towards getting into the on-patent business.
18 months back, PPL saw funding issues with Bio-tech and hence pivoted to big pharma. This pivot has helped in Fy24 with more business from big pharma.
PPL has been doing conjunction for over ten years
Biosecure has increased interest from clients in innovative patent work.
ADC- Number of large pharma visited in last six months. So expect to get business from them in the coming yearly
Most of CDMO’s capabilities are in place. So, future capabilities will be more brownfield.
Generic product capabilities are fungible for patent-related work if needed.
High fixed-cost business. Increased sales drive professionalism. CDMO and ICH will be drivers of the increase in profitability in the future.
India Consumer Business
CHG (Hospital Generic)
Outlook for Fy25
Early teen growth-
CDMO will be better than CHG
This is the best slide to track the company performance
My Take
I get the impression the company is keen on expanding on patient businesses. Last year, two companies announced the commercialisation of two products. I think their business would have been a major driver of the increase in revenue for the patent business. As they launch their product in the market, and as the product gets better accepted, it is likely that these two recently launched products will give more business. I think the CDMO on-patent business shall be higher significantly again in FY25, even if there is no more product commercialisation in FY25.
Note- Invested
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