Company had their first conference call ever – which is a good sign!
There were few inconsistencies in the answers given by management. I hope they come better prepared next time around.

Few notes:
Company mentioned Rs 1000 Cr revenue target in next three years from current 581 Cr. That is ~20% cagr.
At some other time, they mentioned 15-18% growth year-on-year going forward.
(in previous quarterly ppt, they had mentioned Rs. 750 Cr revenue target by FY26).
Let’s see where they land in coming years.
But main message is, in any scenario, company is confident of >15% growth conservatively.

They are trying to improve the business in export markets and also in domestic market. Reaching out directly to doctors, increasing MRs etc.

New “Cephalosporin” capacity to generate 55-60Cr revenue in FY25. That alone would be 9-10% growth over FY24 revenue. Cephalosporin could generate ~150Cr revenue when utilized fully.

Company’s capex in FY25 & FY26 to be driven from internal accruals. So expect them to remain debt free.

There were questions regarding loans to promoters – which could be a red flag. Needs to be checked in annual report.

Lastly, they invited investors to come and meet them in office and also for the factory tour! Seems like the company is trying to get investors attention.

Overall, company still looks decent with 12x-13x PE, debt free status and quite grower without much hullabaloo in the current multi-bagger mania.

Disc. Invested

(post deleted by author)

For people passionate about researching on microcaps (<1000 Cr mcap) and based out of Delhi NCR

The idea:

A small group focused on deep research and in-person discussions on microcaps exclusively.

Rationale:

I strongly believe that lack of liquidity and institutional research can create significant alpha for individual investors. 850+ companies have become 100-baggers in India over the last 20 years, most of these were microcaps for significant periods of time. Identifying even two or three such 20x/50x/100x opportunities with sizeable allocation can significantly alter one’s wealth-creation journey.

Objectives:

“Mr. Buffett, there are thousands of companies out there. How do you even begin to find good ones to invest in?”

“Well, start with the A’s.”

The objective is to:

• 1. Build a database of high-quality, well-positioned businesses that can provide disproportionate returns and
• 2. Act when the opportunity strikes. Our work might not yield fruits over the short-term (esp. given the current state of the markets). However, market corrections or corporate events will for-sure create enough opportunities in future.

What we will do:

• • Ideation and bucketing of companies which are in your circle of competence/ interest.
• • Deep dive on companies that seem like promising opportunities.

Commitment from members:

• • 5-10 hours weekly on research
• • Couple hours for discussions (preferably in-person)

Preferred experience

Just passion for equity investing and identifying good businesses. However, it will be good to have some experience of personal/professional investing (reading annual reports, making sense of the financial statements).

Sample output of a similar exercise I had been doing earlier. Will need to refine it:

Factors considered for initial bucketing (30-90 min level):

If anyone is interested, please DM me

@hariharancj If you are starting first time (or even during rebalances), you could order the stocks through a basket order. You could prepare the basket before market opens and execute it through one click when the market is open.