UK govt granted approval on October 01, 2015. Pl refer attachment

1 Marketing authorisations granted in October 2015
PL Number Grant Date MA Holder Licensed Name(s) Active Ingredient Quantity Units Legal Status
PL 36687/0142 01/10/2015 TORRENT PHARMA (UK) LIMITED ARIPIPRAZOLE TORRENT 10 MG ORODISPERSIBLE TABLETS ARIPIPRAZOLE 10.000 MILLIGRAMMES POM
PL 36687/0143 01/10/2015 TORRENT PHARMA (UK) LIMITED ARIPIPRAZOLE TORRENT 15 MG ORODISPERSIBLE TABLETS ARIPIPRAZOLE 15.000 MILLIGRAMMES POM

UK Govt Approval to market Abilify

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/475629/Monthly_new_MA_listing_Oct_2015.pdf

Hi Donald,

I think you have misunderstood my point....I am not saying that management is saying any lies or something...infact I have been on record in this thread saying that management led by Mr. Nishith Arora has been one of the best and most ethical management I have seen in mid-cap cos.......otherwise MPS would have not formed more than 20 % of my family portfolio......but, some facts are facts that we need to accept.....as I have said in my last post and I repeat that 'severe' pricing pressures (which lead to good volume growth but muted value growth) seem to be absent in reasonable peers....SPS, I told before also, could be beneficiary of its parent....

Rgdg., Newgen, my analysis makes me believe that it is in the similar area as MPS (If I remember correctly, even Mr. Arora has told this in the MPS's initial concalls).....
link that you seem to have provided www.newgensoft.com -- is this the same co. or affiliated co. of Newgen Knowledgeworks ?? I have always referred Newgen Knowledgeworks in which PEs are invested and I believe its website is -- www.newgen.co -- If I am wrong then pardon me but in all the mca filings that I have same website is referred.

TNQ also seem to be a very close l-t-l peer. Its YoY data I have provided before also -- its 9 %, 32 % and 35 % for FY12, 13 and 14 respectively with EBITDA margins of 30.4, 23.3 and 42.3 % respectively.

Also, what I have understood of this industry is that when you say l-t-l you have to see the clients and segments it serves.....for ex., you can't compare a player like Impelsys which is largely a platform play with MPS but otherwise what every player including MPS is eventually attempting is to plug the gaps in its offerings and offer maximum it can offer....In that sense even what Mr. Arora tells of his vision to approach its largest peer Aptara's scale -- even Aptara is present in other segments (XBRL) and serves those end clients (BFSI) which I don't think MPS serves.

To conclude, evenif I see the most closest l-t-l comparable Indian peers like SPS, Newgen or TNQ, I don't find 'severe' pricing pressure that could amount to a single digit organic growth post stabilisation period. This is the only disconnect I can find in story or, specifically speaking, management commentry otherwise the story seems compelling to me personally.
The biggest advantage that I see for MPS in this industry is its positioning.....which is slipping every passing year as its reasonable peers are growing that much faster......I see no point in comparing MPS with small peers which have sub-80 or -50 cr. revenues (in my initial posts I have given all the data points wrt different scale cos. Revenue CAGR and EBITDA margins).....MPS surely is well positioned and its credibility is very high but organic growth has to start somewhere for it to be great wealth creator for all of us.....company's operating matrix is excellent with Mr. Rahul Arora also specifically pointing to his focus on improving margins further in recent concall.....Mr. Nishith Arora -- the great man behind building and divesting ITC at premium rates and then turning around MPS in style has taken the sole responsibility for crucial acquisitions thats also reassuring from investor point-of-view.....but two things we need to understand :
(1) Without Organic Growth story will struggle in long run,
(2) EBITDA margins of 35 % + that we see might settle for 25 or max 30 % range as company scales up (even Newgen at consolidated level seems to be operating at 30-32 % margins).

Rgdg. contacts, I think Varadha has some very good contacts in the industry.

Rgds.

( You can refer my September'2014 post in this thread in which I have given all the data points scalewise of different cos.)

@ravijain88
Thanks for the prompt reply. I appreciate it!

Any clue on today's rally by Cupid, Anyone!

Thanks Mahesh as always for taking the discourse further. And providing answers to the gaps !

Yes, its a good idea to present Competition data points again to MPS Management, at Conference Calls and other interactions with Management consistently. We did raise this in the Mgmt Q&A at a first level - MPS wanted to see if FY15 stellar margins reported by SPS sustains in FY16 - before responding further on this point.

We do not find inconsistency in the Management commentary, atleast not yet. From our perspective these are the counter-arguments to your thesis.

1. We should be careful of comparing Apples to Apples. SPS fits the bill well as it serves the same Customer segment. Newgen doesn't serve the STM market from what I could see, so that shouldn't figure in any rational/objective peer comparison chart (http://www.newgensoft.com/customers/)
2. That almost all other players in STM Market report inferior margins than MPS gives credence to MPS observations on margin pressures faced
3. It is also consistent with the Publishing Industry dynamics - where most of the large Publishers are struggling with profitability/cost pressures
4. We suspect SPS higher margins have to do with a mix of two factors a) captive of Springer (there may be long term contracts) which accounts for 50% of the business b) better productivity/efficiency from automation tool-kits and processes

Any others competitors in STM Market with higher margins that you can point to?

Did you cultivate any contacts in the STM Technology Vendor space? We are now primed to extract the most out of any direct interaction with domain specialist folks

Sold my stake in IPCA labs in the price bump up today with modest gains 0f 8-9 percent. That makes IPCA holdings-zero.
Reason- near term trigger of probable USFDA clearance being granted to IPCA being priced in, in the last 2 days of up move ( I think so). Post this event...i do not see any substantial sales and profit recovery in the next 3-4 months. And even if it happens, the company looks richly valued.

Converted my IPCA holdings to DB Corp at CMP.....as i think the q3 results for DB corp are expected to be good due to Navratras falling in q3 this year as opposed to q2 last year.

Also with the implementation of 7th pay comission, advt. revenues are expected to go up (although that may take some time, probably 6 months kind of time frame)

The whole transaction makes- IPCA-zero, DB corp- 6% of total portfolio.