The reason is that the spreads of polypropylene and BOPP are improving leading the above players to make better margins in the coming quarters however mold tek packaging is not in a similar business as other players
Posts tagged Value Pickr
Filtra Consultants And Engineers Ltd (05-07-2024)
I recently attended their Annual General Meeting. Some of the key pointers were -
- Financial Projection for FY25 - Targeting revenue of 150Cr with 5.5Cr of PAT
- See a 40% CAGR for next 5 years
- Have added few value added products to their portfolio
- They are into design, assembly and troubleshooting of RO Plants
- Will add new products in portfolio - Process Separation RO membranes, Automatic swimming pool cleaners etc
- Have leasehold land in Pune on which they have will do some construction due to increased FSI
- Have a good relationship with Ion Exchange - supply material to them and also compete with them in certain areas
Disc: Invested from lower levels
Oriental Carbon and Chemicals Ltd (05-07-2024)
The holiding company has 100 Cr of mutual funds on book as well as 100Cr of private equity (at least that’s what its valued on paper). If the holding company goes below 150 Cr I am buying, if it goes above 300 Cr, I am out of there. In between, I ll just be there for the ride.
The chemical business, at less than 500 Cr starts getting reasonably valued. Its a tiny company, so might swing a lot. Fun times!
Rakesh Arora Steel Industry Presentation, 2023 (05-07-2024)
Hi Rakesh (@Rakesh_Arora) : Request you to share or point to any source to know the upcoming steel capacities of the big names such as Tata Steel, JSW Steel etc. in the near future [by 2027] along with their existing India capacities. TIA.
Syngene International (05-07-2024)
Q4 Fy24 Concall
~ Current Operational Performance:
^ In 2024, revenue from CRO has largely remain flat YoY while CDMO has seen 25% growth.
Business Structure
^ If you’re going to take and transfer some work out of China, the easiest and the most fungible, certainly the quickest, is just the research part of it, so discovery research contracts. Just because of their very nature, they tend to be short-term or annual FTE contracts. Once you move into development, it’s a bit stickier, and of course then product manufacturing, whether it’s API or drug product, is much less agile and not easy to move.
Business Changes
^ Plans to invest around USD60 million in capital expenditures, primarily in research services and development and manufacturing services, half of this is expected in research services, around 40% is planned for the CDMO business, and remaining includes investment in digitization and ESG initiatives.
Guidance
^ We anticipate high single digit to low-double digit growth on a constant currency basis for the year.
^ The effective tax rate is expected to increase to around 23% in the current fiscal year.
Remark
^ Startup biotech funding hit a road bump.
^ For big pharma company, biosecure act will cause slow & steady diversification from China.
^ Demand may come back in H2Fy25.
Goldman Sachs CDMO Report Apr 2024
20% plus growth in CRO in a biotech funding winter appears to be very much optimistic, i expect it to be around 8-12% at max. However, CRO is not as sticky as CDMO and in an “CHINA+1” scenario, this may actually touch 15-20%. Regarding CDMO, it is already growing at 25%+.
ANNUAL REPORT 2024
^ The global CDMO market (comprising small and large molecules) was valued at USD 82 bn in 2023 and is expected to grow at a CAGR of 14% to reach a market size of USD 208 Bn in 2030.
^ Development and Manufacturing Services revenue grew by 26%.
^ All the existing mAbs manufacturing capacity is utilized. The new facilities acquired from Stelis will be available for business in the second half of FY25.
^ In the biologics development laboratories, the focus was on piloting high-yielding cell lines.
^ We anticipate stabilization in demand growth from small- and medium-sized biotechnology clients based in the US from second half of FY25, as the funding environment normalizes.
^ Biotechnology funding remains robust, with 2023 levels comparable to pre-pandemic figures from 2019 and exhibiting a long-term CAGR of 6%. While 2023 has been challenging for biotech funding, Jan to March 2024 funding levels were the highest in previous 14 quarters, similar to funding levels in 2021.
^ The global pharmaceutical market for human health is shifting towards large molecule drugs and expected to grow at a 12% CAGR from 2022 to 2026, contrasting with 2% for small molecules. Consequently, demand for biologics manufacturing capacity is rising at a 9% rate, but only 2% will be met by in-house expansions.
^ Commissioning of Automated Central Compound Management Facility, a first-of-its-kind in India. This state-of-the-art facility acts as a repository for all compounds synthesized by Syngene. The CCM can store between half to one Mn compounds in controlled environments.
Present status of funding in CRDMO Src: AR 2024
Funding is back to pre-covid level. Management is expecting it to go upwards from here on.
CREDIT REPORT Nov 2023
^ Over the past 2-3 years, Syngene has undertaken high capex towards commercialisation of the API manufacturing facility in Mangaluru & research centres in Hyderabad.
^ The company has organic capex plans of Rs 500-600 crore annually towards adding laboratory space for future expansion of the R&D business and capability additions across other services.
^ Syngene will remain exposed to risks related to stabilisation and ramp-up in production and services. However, its history of timely project completion provides comfort.
^ Any time or cost overrun in the planned capex will be a key monitorable.
VALUATION
My view on Base & Bull case. For me the company is trading at (Rs 700/-) fair valuation of 3year projected earning in bull case.
Disc: Holding & hopeful on the future.
Bajaj Finserv (05-07-2024)
5th July 2024
MCap of Bajaj Finance is 440,000 Cr
MCap of Bajaj FinServ is 252,000 Cr
If I subtract out the 51.34% stake of Bajaj Finance from the market cap of Bajaj FinServ, I am left with about 26,000 Cr.
For 26,000 Cr, you get a 74% stake each in BAGIC (general insurance) , BALIC (life insurance) and the whole of Bajaj AMC.
BAGIC and BALIC have 7.3, 5.8% of the market share respectively. I compared AUM of BAGIC with listed players (ICICI Lombard, HDFC Life) and the premiums written by BALIC with that of listed players (HDFC Life, ICICI Prudential). BAGIC and BALIC if listed independently, for the 74% share, would be at lease 25,000 Cr and 30,000 Cr respectively.
The AMC business just started a year ago, so still pretty small (AUM 10,000 Cr), but growing rapidly. Given Bajaj’s history of incubating comapnies, seeing what they did with Bajaj Housing Finance (100% owned within Bajaj Finance) getting to 1731 Cr PAT within 6 years, I am confident that the AMC business will do well. By the way, the housing finance comapny will get demerged and listed separately by Sep 2025. It should command a market cap of 50,000 if compared to listed peers.
For those who would have be happy to buy Bajaj Finance today, FinServ might be interesting to consider instead. You basically get BAGIC or BALIC for free - that’s 6-8% of India’s general or life insurance business. Not a bad deal. And who know what becomes of the AMC.
Shilpa Medicare -Racing away on the Oncology API highway! (05-07-2024)
SML’s CDMO customer, Unicycive Therapeutics, Inc. has reported positive results from pivotal clinical trial of Oxylanthanum Carbonate (OLC), a NCE molecule.
SML has partnered with Unicycive to provide end-to-end CDMO services right from development & supply of APIs to finished dosage form.
Apart from the supply arrangement, SML is expected to receive US$ 10 million as milestone income spanning over filing, approval and launch of the product. Additionally, in anticipation of increased product demand Unicycive will also fund the establishment of new manufacturing block at Shilpa’s site.
Phantom Digital Effects Limited (05-07-2024)
Can someone please comment on the higher trade receivables and negative cash flow from operations? Specifically, interested in understanding if this is common with the film industry. It seems concerning that an increase in sales doesn’t translate into generating enough cash
BEML – Disinvestment (05-07-2024)
Discl: Invested from lower level. Not a buy sell recommendation. please do your own assessment before buy sell decision.
Trigyn Tech – Multibagger potential (05-07-2024)
Any view on the company as on date.
The last reply on this thread was in 2018.
Are Tech companies the next theme for multibaggers ?
As per 2023 data-
Company generates 90% revenues from its US subsidiary through clients like the United Nations and local and state governments in the US.
Majorly it depends on the conditions of US.
Any views?