I agree that in terms of revenue the company has not shown any increase in pharma or healthcare.
Once again, I agree. We are not seeing any meaningful difference in realisation per kg polymer processed.
I am going by what the company has referred to in their latest concall. See the below screenshot. Amit is referring to how this market may grow to half a billion pens a year. But you are right. The company is totally dependent on how big a share of that market does Sanofi get or how much market goes to generic manufacturers who also then use Shaily’s products.
I think they took some time in trying to understand how to organise their business. For example they started the toy business a few years back and are now retreating from it. In the interim they also kept looking for a CEO but have now put that project on hold. They have recently done a capex of 100 crores specifically for Pharma and my guess is that they are now feeling confident of that getting converted to revenue real soon. Otherwise why would they sink so much money into capex which will lie underutilised for the next couple of years. But this is my optimism talking. Let’s wait and see what kind of revenue and profit starts getting generated from the pharma business.
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