In Sonalis Consumer post preferential issue the promoter holding will come down from 38% to 17.5%… isn’t it concerning…

I am not sure if you have read my above thesis, but we can not value Natco with simple PE and PEG ratios because their revenues are lumpy due to their business model. No one can predict what revenue they will clock in FY’27.

Revlimid is a one-time cash-generating opportunity and the company is optically looking cheap on valuation metrics like PE and PEG. I am not saying it is expensive.

All I want to say here is we should not project Revenue and Profit for Natco post FY’26. There will be a dip in revenue, margin, PAT. But the bet here is no management to find new molecules to generate cash. They have done in the past and they have a great pipeline of molecules.

Good thread on the CDMO opportunity
https://en.rattibha.com/thread/1834847045900996695

The difference of 400 crores would shrink by another 175 cr after accounting for 20% buyback tax + surcharge/cess on 4 of the 6 buybacks.

Maize boosted by ethanol demand is a big positive.

BT 3 – cotton seed price control’s by government need to be removed as well to enable entry of BT 3 cotton seeds. Whenever that happens, it would be positive – but very low probability with wafer thin majority government for next 5 years – same government buckled down in front of farmer agitation when there was comfortable majority.

Advanta seeds – value unlocking may lead to value unlocking for Kaveri seeds. The very low valuations of Kaveri Seed will tend to stand out vs the valuations for Advanta in an IPO as most IPO’s are happening at mind boggling valuations. KKR owns 13.3% stake in seeds platform of UPL – paid 2,460 crores in Oct-2022 (Making then equity value of Advanta at 18,450 crore).

From social media posts, observe that Kaveri has a new corporate office. So the capex partly went to fund the new corporate office also.