Hi Rohit,

We should also look at the company from forward valuation perspective and not just trailing. On trailing basis, yes it does look expensive but on forward basis it might not . I think Q2 results will give us a fair idea about how the earnings will look like in FY16. For FY17, it all depends on the product approvals and off course how the competition pans out in Abilify. I am banking on two things in Alembic:

• Their superior pipeline and R&D: I think the kind of R&D spent company has been doing is really commendable given its size.
• Establishment of front end in US markets: I think we can clearly see how Torrent has been able to leverage more from Abilify as compared to Alembic as it doesnt share its profits with the partners. Front end gives you more leverage on supply chain, pricing etc. They have hired three very experienced pharma executives for the US markets. Lets see how the execution is on that front.

Hi,

Anyone attended the AGM concluded on September 30?

Please do share any notes on the same.

Thanks

@srnarayan

From current rate I see limited downsides for MPS so opportunity cost purely depends on what other opportunities you have at this point of time because I see scope for good appreciation even from here on for MPS because there seem to be many ammunitions still left in company’s arsenal…..key monitorable is how well company uses the cash it has whenever it does……even if management can generate less than half the returns from acquired company than it generated in case of Macmillan then wealth creation for investors could be significant which even at current corrected rates many high quality management mid & small caps might not be capable of delivering…….company should not burn cash in any way by making high loss making acquisitions or by buying hgh debt……if at FY18 dreamed scale of management, a 25 % + EBITDA margin is maintained consistently with healthy balance sheet then current valuations will look extremely appealing for not only long but medium term investors too.

Rgds.

Discl – Invested in MPS

Note – This is not a buy/sell/hold recommendation and is only part of general discussion.

I haven’t looked into the businesses you have mentioned. Thus I cannot comment on them.

One positive that I liked about NCL though was, increase in promoter holding at current levels. If promoters show confidence about the business and things look set for near future, it’s good enough for me to take a position.

Why shouldn’t we buy other cement companies like Sagar or Mangalam Cement as they look to be cheaper than NCl with more capacities and higher realizations ?