The number of labs having PCR cycler machines has increased multifold during the Covid times. These labs are potential customers for 3BB. Furthermore, the company is looking to expand its foothold in European markets as well as the middle east. The company has more than Rs 100cr cash for inorganic growth. If things go well, this can lead to exponential growth in revenue over the next few years and can lead to major re-rating.
Tech-disruption risk, due to the newer technologies such as CRISPR diagnostics and Optimal Genome Mapping, is high over the next few years, particularly given huge investments recently in these fields. Several people have expressed similar views in this thread. However, the increased prevalence of PCR machines (due to Covid) will slow down the disruption away from PCR tests.
The NGS tech is less prone to disruption as it works together with the newer technologies. 3BB’s foray into NGS needs to be tracked closely.
The company should invest into the newer techs to ensure continued growth in the long term. As of now, the company is still to reach scale, which will be the focus for the next few years. Scale while maintaining quality will hopefully allow the company to transition into the newer techs in the future.
| Subscribe To Our Free Newsletter |
