Any updates here for the move today?
Checked the announcements… couldn’t find any

Some take aways from AR 2021-22 (link)

Financial and Numbers:

• Standalone Revenue from operations stood at Rs. 1,320.22 crore in FY22 against Rs.1,009.71 crore in FY21 - a growth of 30.75%. This growth was primarily owing to the growth in CDMO and specialty chemicals divisions which reported a better than budgeted performance.
• Our top-line grew by 47% on a higher base. Our EBITDA margin scaled the 50% mark despite the inflationary pressure that prevailed during the year. Our Net Profit increased by 80%.
• operating margin improved from 47.22% in FY21 to 51.04% in FY22.
• The overall debt burden dropped from Rs. 141.23 crore as on March 31, 2021, to Rs. 95.57 crore as on March 31, 2022;
• Debt-equity ratio improved from 11.4% to 3.3% over the same period.
• The Company invested Rs. 65.42 crore in the business as part of its ongoing planned capital expenditure.
• The Company spent Rs. 620.08 lakhs on its social and environmental commitments in 2021-22 to make the business sustainably profitable.

Rising divesture and Casper acquisition

• We had invested US$35 million in Rising Pharma in 2019. In FY22, Rising Pharma was acquired by HIG, we sold our entire stake to the acquirer for which we received US$41.55 million in cash and a 7% stake in Rising Aggregator (a holding Company created by HIG to manage Rising Pharma and other acquisitions that would happen in future).
• In a nutshell, an investment of US$35 million has given the Company US$41.55million in cash, a 7% stake in Rising Aggregators and 100% stake in Casper Pharma, which promises to bolster our formulation vertical significantly

[important to call out… Technically above statement is incorrect/misleading, not that they have got $41M + 100% stake in Casper. Casper was acquired from the proceeds of $41M ]

• We used US$ 20.50 million to acquire Casper Pharma, which has a large manufacturing unit in Hyderabad dedicated to the manufacture of solid and liquid oral pharmaceuticals for USA and regulated markets and ready for USFDA inspection.
• Casper Pharma is into manufacturing solid and liquid oral pharmaceuticals for USA and regulated market. They have a new manufacturing facility (approximate capacity of 1.20 billion doses) located in GMR SEZ (outside Hyderabad airport). They have filed 2 ANDAs which have triggered a US FDA audit which is likely to happen anytime soon. Besides, they have 15 ANDAs which they plan to file in FY23. When these get approved by the regulated authority, it will strengthen our position in the formulation space.
• Casper has agreement with Rising Pharma for next 7 years

Segment wise business updates:

Formulations (Suven standalone without Casper):

• We filed17 ANDAs of which 9 have received approvals and 8 were launched. In FY22, we witnessed healthy traction for four of the launched products which boosted revenue from the formulations vertical. ,
• we are planning to maintain a steady pace of ANDA filings over the next 3-4 years. We plan to file about 6-8 ANDA’s in FY23 which should hopefully start generating returns 18-24 months thereafter.
• In the last 3 years, our revenue has moved up steadily from H6.50 crores to H45.69 crores.
• Armed with intellectual capital and capability matrix, we realise that we can partner with any global player anywhere across the pharma value chain. Hence, we moved from working on intermediates to developing formulation.

we have put in place three out of the four wheels in our formulation vehicle.

• Wheel 1: Our existing formulation’s piece under Suven Pharma.
• Wheel 2: Our stake in Rising Aggregator. The value of our stake in Rising is expected to rise over the coming years as HIG is focused on new acquisitions to more than double the enterprise value of Rising Aggregators in future.
• Wheel 3: Our acquisition of Casper Pharma and their contract with Rising Pharma should generate interesting returns.
• Wheel 4: We plan to manufacture KSM and API for formulation for some of our clients.

CDMO Business:

• The CDMO business registered a healthy double-digit growth in FY22 driven by the success of molecules in clinical trials with conversion to next stage and good volumes for some commercial CDMO projects.
• We had a good number of projects in the Phase 2 and 3 categories which resulted in higher volumes and hence better billing.
• In the Commercial CDMO piece, supplies were robust, and the combination of these factors helped in elevating the performance of the CDMO vertical.
• we became preferred vendor to four global players which will enhance the new business opportunities and expansion of our offerings into forward integration of the product development.

Specialty Chemical:

• The volume picked up because this molecule came out of patents in some countries during the year under review. But our partner developed a robust life cycle management which generated good volumes.
  [ must be referring to molecule #2 that they had]
• Also, there was a commercialization of 3rd molecule during the year which also helped the growth.
• One molecule for which developed the intermediate made it through to the commercial launch stage. While this is something to cheer about, it does not immediately translate into business volumes for us. Repeat volumes for the intermediate supplied by us could accrue in the next 12-18 months after successful launch of the product.
• The Company is also working on the development of a fourth intermediate which holds the possibility of seeing the light of day in the next 18-24 months.

Capex:

• The capex is mainly a replacement capex. We will invest H200 crores for the replacement of a block at Suryapet which is more than 35 years old. This plan should be completed by March 2023.
• We have allocated another H200 crore for relocating our R&D centre.
• The last piece in our capex plan is the additional block at Pashamylaram for which we will invest H200 crore. We plan to undertake this project in 2023-24.

Outlook and Misc:

With the slowdown in pharma business globally we hope to sustain business growth in the current year. While the speciality chemicals and formulations verticals would remain stable at best, we expect the CDMO piece to drive moderate business growth.

• We are expanding our services model, which should create immense value for our customers and the Company. This strategic direction is an outcome of our multiple and intense interactions with the global innovator community, most of whom are also our clients. They want us to extend the runway of our services. They wish that we walk the extra mile. For this, we have contoured two prospective service options. One, forward integration service,where we extend our services to develop and manufacture products further ahead in the value chain - from say, one intermediate (currently) to more intermediates and KSM (Key Starting Material) and APIs and Formulations. Two, life cycle management service, where we contour the prospects of working with the innovator on a product that will genericise in future. We will develop and manufacture everything (intermediate to formulation) for the innovator

Disc:
Invested

Seems the company was not adequately prepared and has been caught off-guard by the NCLT notification regarding amalgamation (did they engage a good consultant for the amalgamation?):

Is this information available in the public domain, e.g., via the NCLT website? If not, then from the recent stock price movement, can we infer that there is a leak of insider information? I would not like to have a big exposure to a company that leaks information. Therefore, I am interested in the answer to the above question.

Disclosure: Invested.

Indeed agree on beauty of this forum.
Regarding the risk of Prashant Jain’s leaving the AMC, I think now most MF investors are pretty much well read and informed…HDFC AMC not doing well since few years is well known fact and this exit may actually not turn out to be a big event as it might have been had the funds been top performing since many years with all extra alpha, beta, Gama, delta seeking investors crowded…IMO that’s currently not the case…

Infact the exit might be counter intuitive as many were seeking growth rather than value strategy and with new CEO that had come from SBI MF, they could have already sensed big changes in strategy might come and may welcome it as well…

Not to mean Prashant Jain’s strategy is anything less and big respect for his strategy and ability to stick to it…but investors and market thinks with minds of their own and very difficult to predict or fathom…

Disc. 5% of portfolio invested in HDFC midcap opportunities fund and small position in HDFC AMC stock, hence maybe biased. Views only for academic purpose and I can be completely wrong in all my assessments.

Traders get stuck, informed investors who know what they are doing, who have conviction, who are nimble but also patient, who can afford to stay put for years don’t feel like getting stuck. This is not a trade in the general sense, it is an investment, it is an allocation, may be part of core PF.

Not that their thesis will surely work out and they will be rewarded as they expected, but I guess they are willing to take that chance. Some may think they have seen enough and quit, some don’t.

There are many such stocks where there is discussion but the price does not move for years, Mayur Uniquoters, CCL, Wonderla, Avanti etc.

VP folk are diverse, VP threads are diverse. Stocks where frauds were called and proved, stocks where there is a consolidation for years, stocks which rose meteorically etc. And then there are members who have evolved to different investors, who changed their styles, who value things differently now compared to their past.

There is a lot to learn here fundamentally, technically and behaviorally.