With due respect, I don’t think that is the right way to analyze growth rate because the company has three different business verticals, with different respective growth plans. If we look at their CDMO business as an example, that is expected to grow between 30 and 35%, this is something that the management hinted in their latest conference call.(They might be conservative in giving this) So judging the growth story of the company solely on the basis of PE multiple would not be the right way.

In my opinion the company is poised for growth in the medium to long term, with their gross block almost increasing by 60%-65% between FY24 and FY26. The company also talks about the CDMO/ CMO business having an average asset turn of 1.3-1.6x, with 19 projects in the development phrase.
To sum up I feel. Capex Plans>> Projects pipeline>> better margin profile will help the company do well in the medium term.
Disclosure: I am invested in the company since FY22

Thanks for this. So assuming that their current business’ PAT remains stagnant, PAT from Data center business alone can go up 9x in the next 4 years. This looks promising. However, could you please clarify a couple of things for me. On the valuations front, when you say current PE of 55 is cheap, are you saying this from a future growth potential perspective or on the basis of comparison with other peers who are in the same business? Secondly, given that it gone up 9x in the last 24 months, how much of this future growth do you reckon is already factored in the current stock price? Thanks.

Finally NGL has received EU approval for Triclabendazole after a long wait (link). They have approved capacity of 2000 KG/Month.

Overall, number of EDQM review closures has increased meaningfully since Jan’24. With that, one can expect outcome on other two filings (Flunixin Meglumine and Marbofloxacin) for EU in a reasonable timeframe. Augers well to get started in regulated EU market.

Thanks,
Tarun
Disc: Holding (no transactions in 60+ days)

I think people want to do it by themselves, as there is a joy in DIY, so they want to involve, they want to participate. Profit will obviously will make them involve more, losses to the point of affordability will keep them active, beyond that, they leave.

And majority of these people are not concerned about long-term, they cannot wait for a few years to see a 12% CAGR, they want a quick 20%, some even want to know about multibagger stocks regularly.

And many people don’t want to pay, even those who can afford don’t like the idea of paying. They have no idea about asset allocation, they compare PPF with stocks, they don’t want to build a portfolio. Even if they know, what’s to pay for is the question. Everything is available online, every regional language has tens of YouTube channels, so why pay, when they can do it themselves. Even the people who express their concerns that they have missed opportunities or time regarding their finances, don’t want a structured, methodical route, because they have to pay. They would rather videos and DIY.

Not to mention the content that is generated everyday, some of it informative, most of it unnecessary, and the creators and influencers don’t necessarily express truths always, and even if they do in one video, the next video will make viewers forget the one made before. These channels are not focused, and the viewers are bombarded with non-stop content, from multiple channels, so it is hard for an average person to discern what is necessary and what is not, but they believe the creators and influencers, and do as they say.

And we are large country, with very diverse geographical, social and cultural aspects which also play a role in how we look at money. And people who either want to better their financial status, or want to build one, but cannot allot time as they want to focus on their jobs, will seek advice, but these will be less in number compared to DIY, believer folks.

Very good initiative. What is the number of stocks in your momentum portfolio? Usually, people suggest 10 stocks with 10% allocation for each.Have you tried with lower number of stocks or higher?