One of the reasons attributed to flat topline growth for q2 fy 16 in case of Avanti is that the ponds and shrimp producers observe a 45 days production holiday to reduce chances of disease.
I got this info while talking to a fellow investor who is a keen follower of the industry and its trends.
When EHP in an area is left untreated, bad things happen. It has been especially prevalent in China for a number of years. The spores build up in the environment, resulting in slower and slower growth.
If the first year farmers could produce 20-gram shrimp, they might see 15-gram shrimp in year two, and 10-gram shrimp in year three.
This is largely the story of China shrimp culture at the moment. Farmers have been unable to produce large shrimp, and they are turning to antibiotic use to treat disease.
As a result, China exporters have had to import shrimp both to get the size range they needed, and to guarantee antibiotic-free shrimp to ship to the US and elsewhere.
The spike in rejections of shrimp from Malaysia due to high levels of antibiotic residue is also to be traced to this problem. Chinese growers who could not sell to local processors apparently transshipped their shrimp to Malaysia, and the rejections for antibiotics spiked by the FDA.
In recent months Malaysia has cracked down and successfully prevented this practice, and FDA rejections have fallen sharply as well.Finally, unlike EMS that led to widespread mortality, it appears that the impact of EHP is more akin to that of sea lice on salmon.. it slows their growth and weakens them but is not usually fatal.
As a result, it will be hard to pick the EHP signal out of the normal variation in shrimp farming results based on weather, other diseases, feed and broodstock health.
EHP is not likely to dramatically collapse production the way EMS did, however it is a headwind that will prevent production growth to a greater or lesser extent in various regions.
Because detection has not been perfected it is hard to know for sure the extent to which the spores already have spread.
It does seem clear that the newer production areas where there has been a spectacular growth of output, such as India, will see a leveling off as ponds become less productive in their third or fourth year, leading to lower density, or more failures to grow large shrimp in higher density ponds.
I am sorry if I am wrong.
Firstly dividend paying company is categorized as good company and also regarded as company with strong cash flows….agreed.
MPS has good cash flows and also paying healthy dividend payout ratio of 60% .
I have a bit of confusion that though paying dividend is a good policy, but seeing the fact that MPS has still more mileage to go in terms of market share and as well as grow both organic and inorganic ( it raised money recently for acquistions ).
I would like to know whether to pay such high dividend still in nascent stage and miles to go ahead, is it not advisable to hold back the dividend payout or pay dividend in more calibrated fashion and invest more money on technology up-gradation and acquisition to capture more market share.
Agree that management don’t want to overpay for the acquisition but seeing to the stickiness in the business lost of market share risk could be even more detrimental for the company.
Just my thoughts and may be wrong.
Disc : Invested
Looking forward to your detailed post on Rain Industries.
http://www.outlookindia.com/article/a-corps-new-clothes/295855
Outlook article…….
Neil..
what r the expectations of EPS for FY16 and FY17..
I think it is getting rerated..due to strong earning visibility…
and also as per recent management interview …next few quarters result will be very good…
may be it is getting discounted future earnings…
what a specatucular run since its results announcement…
Per Zauba, India has exported
~997cr of gNexium to US (from Mar 01, 2015 to Nov 12, 2015)
~252cr of gNexium to US (from Oct 21, 2015 to Nov 12, 2015)
Attached file has the related raw data to chew.
Esomeprazole Magnesium v1.xlsx (30.9 KB)
Note: In addition to Torrent and Hetero, the above numbers would include Cipla‘s gNexium supply to Teva.
Old but interesting article on Amrutanjan v/s Zandu v/s Tiger balms
http://www.business-standard.com/article/management/amrutanjan-pain-for-suitors-110050600008_1.html
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
