Hi Sridhar,
It’s been so long and there is no update about your portfolio. After your post about kovai medicals, I’m silently following your views. Can you update your learning from 2014-2023?

Laurus Labs is in the process of manufacturing medicines for sickle-cell diseases starting this year. The medicine cost will come down from Rs 2.5-6 crore a year to Rs 2.5 lakhs annually. Proud of this company!!!

Not Related to investing

How an ASML Lithography Machine Moves a Wafer

I took a position in AVG Logistics.

It provides following services:
Transportation: Express Delivery, Refrigerated Transportation, Freight Forwarding, etc
Warehousing: Manpower Handling, Packaging, Multi-User Warehouse facility, etc
Value-Added Services like custom clearance, E2E solution, Multimodal transportation, Reverse logistics, etc.

Key points:

1. They are investing in cold chain logistics which will become a big industry going forwards.
2. Dedicated freight corridors by the government should benefit this company. This is from their website, “We are a market leader in providing different rail cargo services to our customers, such as Full rack and peace meal transportation, container movement & terminal management across all CONCOR ICDs.”
3. The company is promoted by Mr. Sanjay Gupta, who is hailed as a veteran in the logistics sector and possesses strong leadership experience in multi-modal logistics management.
4. They have Improved margins by controlling operating expenses.
5. They are raising funds which should reduce the debt to equity ratio in the future thereby increasing the financial strength.

Risks:

1. The Indian logistic industry is highly fragmented with stiff competition. Intense competition restricts the bargaining power and affects the profit margins to an extent.
2. Any slowdown in domestic and global manufacturing/industrial activities, due to weak economic conditions or restrictive trade policies, can have a negative impact on the company’s revenues and its cash flows.