Answer on point by point

1. They have acquired two business in the last one year and IData gross margin on per application is higher than BLS. Plus, organically per application was increased
2. There is 3 Major player in this industry, VFS Global 50% , BLS International 15-16%, TLS 20% market share …so some kind of entry barriers in this industry
3. Acquistion cost higher than Book value. P/BV is higher
   read Temasek to pick up 18% stake in VFS Global for $950 mn: Report
   my post dated 18.10.2024
4. Unaware, but good question
5. Already separate entity with 51% holding. They have different plan like enter into NBFC market in the future (My Assumption)
6. Good question, ask in the next physical / con call
7. They delivered in the past and its good for investors to track.
8. Unaware

You can read Shankar Nath post on this company. To get fair idea of the business and working style

Hey, Rajesh I liked your point , where are we in cycle for hotel cycle… I thought of comparing the current cycle with 2003 to 2008 cycle and found that we are in the midway and valuations of the hotel stocks have already peaked while the earnings may peak in next 8 to 10 quarters… I have made a detailed video on it, you can find that on my YT channel (link in profile).

Glenmark Pharma –

Q2 FY 25 concall and results updates –

Revenues – 3434 vs 3207 cr, up 7 pc
EBITDA – 602 vs 462 cr, up 30 pc ( margins @ 18 vs 14 pc, significant margin improvement )
PAT – 354 vs (-) 62 cr ( not comparable because LY, the company had to bear a one time exceptional loss of 205 cr )

R&D expenses – 227 cr @ 6.6 pc of revenues

Geography wise sales performance –

India – 1281 cr, up 14 pc ( @ 37 pc of sales ). Significantly outgrew the IPM which grew @ 7.6 pc. Cardiac, Respiratory and Derma therapies grew strongly. Company’s OTC business also grew strongly @ 15 pc. Company is ranked no 2 in Derma and Respiratory therapies and no 5 in cardiac therapy in India

Company already has some unique / differentiated products in IPM. These are – LIRAFIT ( Liraglutide – GLP-1 drug ), JABRYUS ( to treat atopic dermatitis, in-licensed from Pfizer ), TISLEIZUMAB and ZANUBRUTINIB ( in-licensed from BeiGene )

North America – 740 cr, down 1 pc ( @ 22 pc of sales ). Company has commercialised 8 injectable products in US. Launched 04 products in US in Q2. Slated to launch another 3-4 products in Q3. Have a strong filing pipeline – 02 Nasal sprays and gFlovent awaiting approval

Europe – 687 cr, 15 pc ( @ 20 pc of sales ). Branded respiratory portfolio led by Riyaltris continues to lead the growth in EU. Awaiting approval for 4 more respiratory products in EU ( were filed in Q4 LY ). Expected to launch WINLEVI ( derma drug for severe acne ) in selected EU mkts in next FY. Has in-licensed WINLEVI for 15 European mkts + South Africa

RoW – 704 cr, down 4 pc ( @ 20 pc of sales ). Reported 19 pc growth in Russia. Launched Riyaltris in Mexico, Kenya and some Asia-Pacific mkts

Till date, company has commercialised RIYALTRIS in 41 markets. They have filed for approval for RIYALTRIS in 90 markets. Should be launching it in 10-11 mkts in next 2-3 Qtrs

Company has partnered with Hikma ( has out-licensed RIYALTRIS to them ) for US market. Seeing good demand traction for the same

Expect to launch RIYALTRIS in China in FY 26. Has out-licensed it to Grand Pharma in China

Company has in-licensed ENVAFOLIMAB ( Onco Drug ) from Jiangsu Biopharma ( China ) for commercialisation in over 20 markets across the globe

Guiding for a full yr EBITDA margin of 19 pc ( that means they should do 20 pc kind of margins in H2 vs 18 pc in H1 )

Company believes, RIYALTRIS has the potential to do a $ 200 million sales / yr in next 3-4 yrs time. This year, it should cross the $ 100 million sales mark

The pipeline of respiratory products lined up for approvals / launches in US + EU should support growth in next 6-12 months

Company is now ranked 13 in IPM with 9 brands in top 300 brands in India

Company is the first one to launch Liraglutide in India under the brand name LIRAFIT. Had launched JABRYUS in India in Jan 24. Company is currently engaged in a lot of marketing, educational, promotional activities across dermatologists across India. TISLEIZUMAB and ZUNUBRUTINIB are expected to be launched in next 9-12 months

Company expects a significant growth pickup in RoW mkts in H2 after a flattish H1. Expects to end the year with high single digit growth in RoW mkts

Company is now ranked no 2 in the Kenyan Pharma mkt

Company’s developmental drug – ISB 2001 – to treat Multiple Myeloma ( a type of blood cancer ) is undergoing Phase – 1 trials in US. The initial data is very encouraging. Hence the company is currently curtailing its expenditure behind other novel assets and focussing primarily on ISB 2001. Likely to keep spending aprox 450-500 cr / yr on the R&D effort at Ichionis ( company’s Innovation led subsidiary )

Company is looking to find a partner for further funding @ Ichionis after raising money by out-licensing ISB 2001. This should take some time and also depends on the safety and efficacy data of ISB 2001. At present, company seems confident of being able to do so in FY 26/27

Company’s Plant in US at Munroe is Serving a USFDA warning letter. Once that is lifted ( should happen in FY 26 ) and company starts launching products from there, it should result in significant operational leverage for the company. Currently, company ends up spending 150-200 cr / yr on the Munroe plant with no revenues

Should be able to commercialise WINLEVI in next 9-12 months. Should be able to start launching ENVAFOLIMAB in next 3-6 months. Should achieve descent scale in both these assets in about 2-3 yr’s time

Disc: holding, biased, not SEBI registered, not a buy/sell recommendation