About the Company :
Orchid Pharma Ltd., based in Chennai, is a prominent pharmaceutical firm in India. The company specializes in the research, production, and promotion of various bulk actives, formulations, and nutraceuticals. Its global reach extends to over 40 countries through export activities. Orchid Chemicals & Pharmaceuticals Ltd. is a vertically integrated company with a strong presence across the entire pharmaceutical value chain, demonstrating expertise in research, manufacturing, and marketing.

Growth Drivers :

• Integration with Dhanuka Labs through a strategic merger.
• Anticipating a robust financial performance with a projected 24% CAGR in sales, a 38% CAGR in EBITDA, and 49% CAGR in Profit After Tax (PAT) from 2023 to 2026.
• Launching a New Chemical Entity (NCE) on a global scale.
• Exciting plans for re-entering the US market, signaling a strategic move to expand and strengthen market presence.

Stock P/E Ratio : 58.4

Sales :
FY 23 666 cr
FY 22 560 cr

Net Profit :
FY 23 46.3 cr
FY 22 -1.9 cr

Major Mutual fund holdings :
Quant Small Cap Fund
Nippon India Pharma Fund
Quant Multi Asset Fund

Major FII/FPI holding :
MASSACHUSETTS INSTITUTE OF TECHNOLOGY (4.64%)

Manufacturing blocks –

Sterile APIs – 6 Blocks ( 05 crystalline and 01 Lyophilised blocks )
Oral APIs – 07 blocks
Intermediates – 05 blocks

Orchid Pharma (Orchid) is a prominent supplier of cephalosporin APIs, and its recent revitalization under new ownership by Dhanuka has been remarkable, achieving a significant reduction in debt and a threefold increase in Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) within just three years.
Contention is that Orchid is now primed for a growth trajectory driven by:
i) enhanced utilization of its expanded capacities, currently at 75%;
ii) the potential advantages stemming from the Production Linked Incentive (PLI) program for a crucial starting material (7ACA), expected to amplify sales and promote backward integration.; and
iii) the timely implementation of innovative projects, including two with limited competition

Key Risks:

1. Execution Risks: The successful and timely implementation of these initiatives poses a significant risk.

2. Litigation Risks: The introduction of Sterile Abbreviated New Drug Applications (ANDA’s) in the US market hinges on a positive outcome in ongoing legal proceedings.

3. Pricing Risks: Unfavorable shifts in API prices due to changes in competitive dynamics or alterations in supply and demand could present challenges.

4. Regulatory Risks:
   a. ORCP Novel NCE (Enmetazobactam): As Enmetazobactam awaits approval from global regulatory bodies, an adverse regulatory decision could impact our projected outcomes.
   b. GMP Compliance: ORCP’s substantial exposure to regulated markets necessitates the maintenance of its manufacturing facility in compliance with current Good Manufacturing Practice (cGMP) for the continuity of supplies and successful new launches.

Here is a brief analysis on a company I am interested in. Would love to hear about your views on the same.
Disclosure: Invested nominal amount for tracking purposes.

@Aarti, latest production from attachment shared above

Maha production is already ~50% of last year.

With Dhampur Bio (atleast sub-par visually) results out, it will be an interesting earnings call next Monday. With govt enforcing strict stock limits, it’ll be difficult for mills to hoard sugar. Syrup/juice based ethanol is practically out this year as mills have to store juice while the crushing season is on.

I think this thread is for that purpose only.

Here is an interview with MD, Founder of Euphoria Infotech Mr. Shamba Bhanja, on the upcoming SME IPO.

SMEmitra | Euphoria Infotech | Mr. Shamba Bhanja | Dhaval Patel | Sanfu Jain

Nuvama Group, formerly known as Edelweiss Wealth Management, boasts a formidable presence in the Indian market, underpinned by a rich legacy of over 25 years. The company stands out with robust institutional support, notably from PAG, a leading investment firm and the promoter of the company. PAG has been a key player in private equity, real assets, and credit markets across the APAC region for over two decades.

Financial Highlights: In H1 FY24, Nuvama Group reported Revenue growth of 24% YoY. Net Profit more than doubled for the period. The company attributed the improved profitability to enhanced operating leverage. The Wealth and Asset Management segments continued to be pivotal in driving long-term growth, with client assets in Wealth Management exceeding ₹2,17,000 Cr, a significant 21% YoY increase. Asset Management demonstrated strong growth, achieving ₹6,175 Cr in client assets, up by 43% YoY. The Capital Markets segment posted stellar numbers, with revenues hitting ₹320 Cr, marking a robust 51% YoY growth.

SWOT Analysis:

Strengths: Nuvama stands as a significant player in the financial landscape with a widespread presence, boasting a workforce of over 2,700 employees spread across 90 offices. The company has achieved a remarkable scale, managing client assets amounting to approximately ₹2.9 trillion, facilitated by a team of around 1,000 Relationship Managers. It is catering to a diverse client segment through a comprehensive platform and employing a Hybrid Channel approach. Notably, the company is majority-owned by PAG, a leading investment firm and the promoter of Nuvama. PAG’s stature as one of the largest Asia-based alternative investment managers, overseeing over USD 50 billion in assets across private equity, real assets, credit, and markets, underscores the robust backing and financial strength supporting Nuvama’s operations

Weaknesses: The operating cost to income ratio increased to 61%, highlighting a challenge in managing costs.

Opportunities: Nuvama is strategically positioned to capitalize on the burgeoning opportunities in India’s financial services sector, riding on the secular tailwinds propelling the growth of financial wealth. The investment asset class is poised to expand even faster, driven by increasing formal penetration and regulatory focus, making India’s wealth industry a structural and scalable opportunity. The company recognizes the dynamics of the market, anticipating consolidation fueled by technology disruptions and growing product complexity.

Nuvama leverages demographic shifts and rising affluence for greater growth, emphasizing its critical role in client-centric services. The attractive economics of the business model are underscored by low capital requirements and high Return on Equity (RoE), accentuated by the concentration of wealth and high operating leverage. Looking ahead, Nuvama envisions Wealth and Asset Management as key drivers, contributing significantly to earnings, and aims to leverage operating leverage for a substantial improvement in the cost-to-income ratio, highlighting a strategic and forward-looking approach.

Threats: External factors pose threats to Nuvama’s growth, such as the fallout of Silicon Valley Bank, rising bond yields, and weaknesses in China’s economic recovery, which have impacted global asset markets. Adverse effects on India, including weakness in exports, could pose challenges. Regulatory changes and global economic uncertainties may affect the company’s operations.

View: Nuvama Wealth Management Limited’s strong financial performance in Q2 FY24, coupled with its strategic initiatives, positions it favorably in the evolving wealth space in India. Nuvama’s ability to navigate risks and adapt to market dynamics will be crucial for its sustained success in the competitive wealth management sector.

If i move my money from my bank account to equity, I am buying from someone and when they get the money it has to sit in their bank account

Only ways liquidity can be removed from the system is cash withdrawals, foreigners withdrawing money, paying taxes and RBI selling bonds/dollars