On Vmart I did not like management decision to lower ASP and instead of focusing on premiumisation they are focused in value growth so an investor I do not like the fact that they are compromising on margins, I know the founder is focused on the value segment and want to target lower middle class and also he is visionary and smart I just do not like this strategy, though valuations are cheap and although Lime Road is making losses I think the intent was right and they did not overpay for Limeroad acquisition it just did not workout well and they have realised their mistakes and focused on reducing their loses.
Also I am not very confident about about their MOAT, only comfort is valuations.
Posts tagged Value Pickr
My Portfolio- Why I own what I own- Veni Kothari (26-12-2023)
Priyank’s Portfolio (26-12-2023)
26 December 2023
- Have been re-structuring the portfolio.
- Sold off Max India. I like Max’s management but there are some other businesses that I like more.
- Reviewing M.K Ventures.
- Note for Self:
Sansera Engineering Ltd – Initiating Coverage – 20122023_20-12-2023_14.pdf (3.9 MB)
Company Insider BUying Tracker (26-12-2023)
I have been doing investments for few years
I have used few tools before I made my own tool for insider trade tracking.
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tickertape tool and the one which is provided by trendlyne ( I have used both and they are good but not great )
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The tool which I have created is highly sophisticated and provide detailed insights on insider trading.
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But I want to understand is there really a need for such tool in first place. Because I see not much interaction in the thread.
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These are the few screenshots of the tool. Currently the tool is just running in my system. Not hosted anywhere. Just share your opinions. I can share it to public as proper tool if there is a real need in place. Hence creating the thread.
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Home page
Individual company page
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LeadsPage
Watchlist updates
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Tracking the company through Tags and status
Tags and status dashboard
My Portfolio- Why I own what I own- Veni Kothari (26-12-2023)
I am studying SW solar I still I am trying to figure out their MOAT in EPC business, promoters selling is not a big deal as Shapoorji Pallonji group is under a lot of debt and this is business is not their focus, also since Reliance has entered I am assuming it will receive a lot of EPC contracts for their upcoming capex for solar plants they had announced to be built in jamnagar, they have also won a lot of orders in Nigeria and raised a QIP so there is revenue visibility too, could you please share your thesis on SW solar.
HDFC Asset Management Company (26-12-2023)
FY2023 profits of AMC companies. HDFC may go down to 3rd position in current fiscal due to SBI’s excellent growth in AUM
Management should make aggressive plans to move up to 2nd position in AUM first
HDFC Bank- we understand your world (26-12-2023)
I think it is more serious in HDFC because as far as what I have heard if targets are not meet they lose their job, my RM in HDFC shifted to Kotak for a lower package as he just had a kid and wanted some work life balance.
HDFC Bank- we understand your world (26-12-2023)
True, their mobile banking app is not the best. All the pain point or mis-selling you mentioned are practiced by all banks 
(For proof, you can search bank name on Twitter)
Neuland Laboratories Limited – Transformation towards niche APIs? (26-12-2023)
Key differentiators I found are backward integration and scaling up. Neuland is backward integrated and scaled up the API from tiny quantities to bigger ones, no information about others.
HDFC Bank- we understand your world (26-12-2023)
I am an HDFC customer it has one of the worst digital banking app and netbanking, I am very disappointed with their service even being an Imperia customer service is very bad, I also have a current account and LAP at HDFC, I have recently shifted to Kotak as my main banking app is very nice, their demat interface is also too good, I think as an investor in the past HDFC bank has delivered consistent performance is primarily I think due to its RM led model but nowadays atleast genz people have become smart and know that in the name of helping you manage your money they just want to sell ULIPs and insurance also HDFC bank is there in my society and I know the employees informally as well, they are very candid and are actually under a lot of pressure to meet targets, I personally think this consistency of the bank is because of its stringent targets to employees but in the end it just leads to mis-selling, if they use technology, they can be a much better bank which could keep its employees as well as its customers happy.
I like the bank’s strategy to open branches in rural areas but when it comes to digital banking it is still miles behind other banks.
Neuland Laboratories Limited – Transformation towards niche APIs? (26-12-2023)
The recent transaction between Karuna and BMS has given clarity on two fronts:
Very High probability of commercialisation of KArxt drug.
The entire valuation of Karuna is mainly derived out of Karxt drug and hence the current valuation gives a reasonable clarity on the broad total addressable market of Karxt drug.
In view of above we now have more clarity on Commercialisation and TAM of the KArxt drug.
The same has also been immediately factored in share price of Karuna post BMS transaction wherein more than 50% appreciation was observed in a single trading session of 22/12/2023 to factor in the acquisition cost.
Now since we have clarity on above two variables we need to work our on the potential revenue for Neuland from the KArxt drug as an API supplier.
As per Annual Report of Karuna:
For clinical supply, we use CMOs who act in accordance with the FDA’s good laboratory practices, or GLP, and current good manufacturing practices, cGMP, for the manufacture of drug substance and product. Currently, we contract with Neuland Laboratories Limited and Esteve Quimica, S.A., for the manufacture of xanomeline and source trospium from Procos, S.p.A. and Midas Pharmaceuticals, Inc.
The KARXT drug is combination of 2 API (Xanomeline & Tropsium) and Karuna has 2 different sources for each of the API.
While searching for API manufactures for Tropsium, names of following Pharam Company was reflected.
However, I was not able to find any manufacturers for Xanomeline. (Experts can throw light on this).
The ratio of Xanomeline and Tropsium in the formulation is roughly in the ratio of 1:4 i.e for making 1 KG of KArxt you will require 200 Grams of Tropsium and 800 Gram of Xanomeline and hence more revenue potential for manufacturers of Xanomeline API (as a layman calculation).
Further, as per Annual report Karuna :
It is our intent to identify and qualify additional manufacturers to provide active pharmaceutical ingredient and fill-and-finish services prior to submission of a new drug application to the FDA for any product candidates that complete clinical development.
So Karuna will obviously look for other manufacturers also for sourcing the 2 APIs.
Now from the above table it is evident that for Tropsium, there are various other manufactures, however for Xanomeline I couldn’t find any one.
So is the API manufacturing process for Xanomeline complex ?? , if yes then there is a natural entry barrier and Neuland is in a safe position.
Further, we also need to analyse how sticky this business will be for Neuland or how sticky Neuland can make this business for itself. The following project highlight (for Xanomeline) published by Neuland reflects the capabilities of Neuland and also build a entry barrier for other manufactures even if the process is not complex. (similar to DIVIS Lab where they evolve their manufacturing process to become a lowest cost produce thereby creating a niche even in generic API)
So any new manufacturer which Karuna/ BMS will be looking for Xanomeline to replace Neuland will be required to have above capabilities along with proven track record. Further, the cost/compliance of shifting/ adding new API manufacturer(for Xanomeline) can also be a deterrent for Karuna/BMS.
https://www.chemanager-online.com/en/topics/pharma-biotech-processing/switching-api-sources
Karxt seems to be a blockbuster and a much awaited drug.
One can go through several reference article available on the internet to comprehend the requirement of this drug.
For reference one can also go through concal transcript of Karuna
KARUNA CONCAL.docx (70.0 KB)
Karuna Therapeutics, Inc. (NASDAQ:KRTX) Q3 2023 Earnings Call Transcript November 5, 2023
Neuland with the latest transaction seems to be elevated to a new orbit now.
Please help out for following questions:
Formulations/drug where Xanomeline is used as an API.
Manufactures of Xanomeline in India/World.
Is Manufacturing process of Xanomeline complex. ?
Disclosure : Invested and further added today and will further add in a SIP mode.