Omkar’s Portfolio Analysis and Discussion

Today after thinking for many months, i have finally bitten the bullet. Added more Ajanta Pharma because of following reasons

1. High comfort level with promoters by observing them over cycles.
2. High odds that we are somewhere at the bottom of the margin cycle.if margins revert then eps can be 20-25% for next few years
3. Increased focus on branded generics as communicated can result in better better Working Capital cycle and hence better ROCEs and cash conversion
4. US FDA inspection is completed very recently. Higher odds of Us generic cycle bottoming out