Am biased towards Pharma – Why?
- Certainty of income – if a new molecule gets launched
- Certainty of cash flow
- Certainty of time – able to gauge went wrong and right to take timely decisions of (buy/sell)
- Diversification – Pharma is more diversified within itself not all molecule, reactors are same.
- Contractual Obligations
- Price/Volume : Differentiation of Low Margin/High Volume vice versa
Risks :
- RM Price
- Recurring cost pressure
- Decision Risks – USFDA risks, Molecule not getting cleared through clinical phases, Factory fire,
When it comes to IT
- TCS, LTI MINDTREE, HCL : all are packing the same boat to head same destination just that some some are big in terms project volumes, cost strategies etc. – at the end they are service based sectors providing services on existing platforms.
When it comes to SAAS companies :
- They have a product and they can charge the customer with having price elasticity.
- They are differentiated across the value chain
- They are disrupting due to products that they offer
IAAS : such as E2E also should do well in India (Domestic)
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