Pharma CDMO is difficult compared to Agri CDMO. I have read PI Industries con calls right from FY17 onwards & they have been discussing opportunities in Pharma way before they did the QIP itself. They have been trying to venture into Pharma CDMO for almost 6-7 years now.
Now, in a TV interview to discuss Q2FY23 results, Mayank Singal hinted that something concrete will definitely come up by Q3FY23 on the Pharma acquisition side. However, still there is nothing concrete on that side.
I do acknowledge that QIP proceeds is lying idle which is depressing the ROE, ROCE numbers, however we can appreciate that they haven’t used the proceeds funding any lower margin business & are still waiting for the right inorganic opportunity in the Pharma side. Also, they have been doing some smaller projects organically.
With the track record of the management execution, something good should come up in next 2 quarters is what I believe.
Disc – Invested & Biased.
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