Results were quite poor, but I expect rampup in next few quarters. Lets see if things turn around.
Caplin is a formulation co and Anuh is an API co, so their business models are quite different. While Caplin has consistenly delivered very good numbers, their nos are optimized to a great extent, where potential for further improvement in margins is little, especially because their current growth is coming from a much more competitive US market. On the other hand, Anuh Pharma can have some margin expansion if they can scaleup their chronic portfolio. So, the delta in earnings can be higher for Anuh.
Also, my experience in smaller companies has been much better than larger ones, especially if one gets in at a cheap multiple. From a nos perspective, Caplin might look better but from a risk reward, I feel both offer good opportunities.
The large players in this sector are Anarock, Liases Foras and Propequity. The core market of selling real estate prices data is not very big, given that nobody really wants to pay for data in India. Thats why all these companies have tried to build ancillary services that can be offered to clients, where their real estate data is used as an input. Companies like Anarock offer consultancy services to help builders sell more flats by helping them with pricing and a better connection with local brokers. Propequity has taken a slightly different approach, where they provide valuation reports to finance companies based on their database. The opportunity in this business is quite large, and there is not much organized competition around this. I am sure if Propequity scales this, there will be more competition. As my knowledge of this space is still evolving and Propequity is a recent IPO, I want to give more time to see how management behaves and deliver on their plans.
@james_kerala @parkhi_nazar You guys are being very kind, we all learn from each other. I have benefitted 100x+ more from this platform than what I have given back.
You can make it as complicated (or simple) as you want. In my family, I have seen people having huge investing success by reading one issue of Capital Market Magazine a month, and also being very unsuccessful despite following all sorts of complicated finance theories. My own observation has been that more information often doesn’t mean better insights. Its the unique insight or thought process one brings into the markets that gets rewarded over time (assuming its correct).
Investing in its pure essence is very simple (buying good things cheap and hoping for the best). Once you get through the basic learning phase, its quite simple and also a very enjoyable pursuit.
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