Yes, the past 12 months have seen exponential rise in prices and valuations of Stocks.
IPOs are coming as if there is no tomorrow.
The brief fall in March 2024 which was expected to be a tick type recovery () went more like V type and it has added fuel to the overly priced stocks.

Many/most times people pay premium for quality but there is a maximum utility of a product/service itself and in context of stocks, there is nothing much left now.

75-80% of stocks in this space is overvalued and there is hardly any value left.
More problematic is that above 40% are even overpriced after discounting 18-24 month earnings and the stocks who were completely out of fundamentals and forever staying at valuations they might never reach are increasing.

Considering that more than 75% of companies still have to post their results along with the general sentiments in the markets, it will be a hell of a ride.

Sanghi Industries.pdf (1018.7 KB)

Sharing my little research on Sanghi Industries Ltd
hope it helps putting out the larger picture into context
I’m new to financial modeling so there is a lack of estimates and projections from my end

hope it adds value to the discussion
thank you

Very positive management comments, guidance and order book. Industry is also doing very well . Added attraction is Govt incentive. Surprised that market is yet to give thumbs up, where as many stocks without any semblance of fundamentals are ruling at astronomical level.
This is market.
Invested and hence biased.

Does INDIA alliance coming to power affects this matter in anyway? Views please

CIPLA Ltd –

Q4 FY 24 results and concall highlights –

Revenues – 6163 vs 5739 cr, up 10 pc YoY
EBITDA – 1316 vs 1174 cr ( up 13 pc YoY, margins @ 21 vs 20 cr )
PAT – 932 vs 522 cr

R&D spends @ 444 cr, @ 7.2 pc of sales

Segment Wise revenue break up –

India – 2417 cr, up 7 pc
North America – 1876 cr, up 11 pc
South Africa – 560 cr, up 26 pc
EMs – 830 cr, up 5 pc
APIs – 190 cr, up 40 pc

Total Debt @ 560 cr
Cash on books @ 8270 cr. Company is open to inorganic growth initiatives

Investments made in FY 24 –

Acquired Actor Pharma in South Africa for 400 cr. It has a portfolio of branded generics and OTC brands in SA

Got into a marketing and distribution partnership with SANOFI to distribute 06 of their CNS brands in India

Acquired OTC brand portfolio of IVIA beauty and Astaberry in India for 130 cr

Company has 21 brands ( branded generics ) in top 300 brands in IPM. These brands have a turnover > 100 cr each

Company has a booming Speciality – InLicensing business with FY 24 sales @ 761 cr. Last 5 yr CAGR here has been @ 39 pc

In addition, company has 5 OTC brands with sales > 100 cr / yr. These are – Omnigel, Nicotex, Prolyte ORS, Cipladyne, Cofsils

North American product pipeline –

Respiratory pipeline – 05 assets filed assets in last 12 months. Going to file 02 more assets in next 12-15 months. Major launches expected in next 12-15 months

Peptides and Complex generics – 12 assets already filed. Going to file 08 more assets in next 1-2 yrs. Multiple launches expected over FY 25-27

505(b)(2) assets – have filed 02 assets. Launches expected in next 1-2 yrs

Company has reached no 1 spot in the prescriptions business in SA

In India, Chronic portfolio’s share is now at 61 pc. Chronic business has a far superior gross margin profile vs Acute business

Company has hit 20 pc mkt share in Lanreotide
( injectable peptide – a 505(b)(2) products )and 13 pc Mkt share in Albuterol ( complex generic – inhaler ) mkt

Guiding for an EBITDA margin band of 24-25 pc for FY 25

30 pc of company’s total revenues come from Respiratory products

Company has set up a manufacturing facility in China. Have got US FDA approval for the same. Have spent aprox 430 cr to set up that facility. Also looking to penetrate / expand into the Chinese market

Company is likely to see 2 more years of strong Revlimid sales ie FY 25, 26

Company’s Pitampur and Goa plants are yet to resolve their USFDA issues ( warning letters ). Once company resolves these regulatory issues, there could be significant bump up in the US business ( company expects Goa resolution and commencement of supplies only towards the end of FY 25 )

R&D expenses to continue to remain in the band of 6-7 pc of revenues

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