Casper pharma facility inspection completed.
Thanks to @T11 for detwiled AR notes.
Suven of future is likely going to look very different from past.
- Higher formulations sales, with assured supplies from Casper this becomes a straight add on with visibility, ramp up may take some time.
- With forward and backward integration – directionally seems very customer(s) specific approach but does make them one stop shop with KSM to API to formulations. It may be based on assurance of customers ( similar construct as Casper supplies)
- High margins and mderate growth to relatively higher growth ( relatively) and realtively lower margins butbztill likely industry leading( mix changes) – again this is assumption and markets like growth. Until Mr Jatsi or Numbers says it – its logical speculation.
- Replacement capex nearly behind them – this is a sort of hangover which didnt translate into equivalent growth capex – at least perception.
If we were to observe Mr Jatsi, he comes across as science passion( suven life a case in point) with strong delivery capability – though doesnt like/ can’t do much about uncertainties in small biotech segment demand pattern, which is out of his control.
Give him longer running programs, offtake assurance for clients which requires strong delivery/science capabilities – he will likely get this done. In earlier avtaar Suven had dependency on small size innovators, which leads lower visibility hence conservative guidance.
Going forward Casper scaling + client assurance backed Fwd and Bwd integrated programs( unclear at molecules focus at this point, but some hints on client lens apprach per AR)+ post covid era stability for small biotech demand normalizing + Spec chem molecules, all of it seems a logical multi engine growth + diversification in a way, hopefully a stronger growth setup construct.
Invested
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