Strides Pharma/OneSource – The Last Stand Will Create Wealth? (25-09-2024)
Key points from the AGM held today
• gVascepa – There is ongoing class action lawsuit against the innovator on API cornering which is likely to take 3-6 months to conclude and is currently sub-judice. Will contribute to sales next year.
• US manufacturing operations have become profitable and contribute positively to EBITDA. Currently running at 60-65% capacity utilization; can extend the utilization through shifts and have a long runway.
• Teriparatide – Licensed to top 3 European companies and over 20 companies worldwide (not sell in US)– Received approval in Europe and UK, EM approvals expected soon. Expect it to be $7-8m EBITDA business.
• One source has 40 logos, 19 are GLPs. Make all 3 GLPs (Lira commercialize Q4 FY 25, Sema CY 26 end, Mounjaro FY 37)
• GLP capex c. Rs 800 crs – will increase GLP capacity by 4x – expected asset turn is 1.7-2x. Expected EBITDA margins to be 40%+.
• Semaglutide (unmet un-serviced market) is expected to be a blockbuster given innovators are focussed on US market (given the pricing advantage)
• Impact of biosecurity act – Interest in Bio CDMO has dramatically increased. RFPs now are 2x of earlier. We have already announced one contract earlier with a top 3 global animal health company.
Disclosure: Invested
TV Today- Value Migration (25-09-2024)
TV Today Network
M Cap – 1400 cr
Cash on books – 830 cr
Debt to equity – 0.04
Sluggish growth in sales and profits, but paying out consistent dividends.
Considering the valuations and nature of business can be a defensive play, promoters also not aggressive.
It can be a major candidate for any majors or acquisitions considering the strong brand reputation.
Tejas Networks – Product based IT business in a favored sector? (25-09-2024)
This is a very promising project with great future potential I guess, but has a lot of challenges from regulatory, infrastructure and technical limitations.
WACR rises to 6.71% as liquidity tightens ahead of RBI meeting (25-09-2024)
The weighted average call rate, reflecting banks’ overnight borrowing costs, rose to 6.71%, surpassing the Reserve Bank of India’s repo rate of 6.50%. This increase is due to a liquidity deficit in the banking system. The RBI’s monetary policy committee will meet on October 9th to decide on potential rate cuts.
Great articles to read on the web (25-09-2024)
Lots of upside still left. What a bullish commentary but with valid reasoning. Enjoy.
Indian Markets Poised For A Surge? JP Morgan’s Rajiv Batra Decodes On The Talking Point