Good Question
Let me give some explanations wrt each company -
RPG LIFE, ERIS LIFE - Both have great focus on branded Indian Mkts ( Eris doesn’t sell outside India ). Their managements are aggressive. Both companies throw up cash like FMCG companies ( Or like - Mankind Pharma, Abbott India ). Their return ratios are excellent. Growth in last 3-5 yrs has been Mkt beating. Its like buying FMCG companies at the price of Pharma ( ie sub 25 PE kind of valuations )
Syngene Ltd - Only end to end listed CRO to CDMO player with impeccable regulatory track record. As more molecules go into commercialisation, profits can really take off
Neuland Labs - Similar story except that it doesn’t do the CRO work nor does it have the biologics manufacturing capabilities. As more molecules get into commercial stage, there can be blue skies ahead. Here too - the regulatory track record has been very good
Senco Gold - Gold/ Diamond jewellery retailer. Only few except Titan have a track record of good corporate Governance. Senco is one of them. Plus they have dominant mkt share in East India. If they do not goof it up themselves, ingredients are in place for sustained growth and high valuations for the company
Angel One - A discount broker - like Zerodha. Their tech platform is very good. Has been consistently gaining Mkt share for the past 4-5 yrs. Plus the F&O volumes in India ( the segment where they charge on a per trade basis ) have never seen a dip since 2008 on a yearly basis. No Dip was seen in 2008 financial crisis, nor during the COVID fall. To me ( as suggested by data ), its a secular story commanding cyclical valuations
Explanation for the rest of the pack by tomorrow. Thanks for the Push !!!
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