@madhug Allow me couple of more days to get back. Have been caught up with somethings at work.

Regarding the question of moat/entry barriers , Mr Anil patodia in his own words said room chartering business is scalable but has NO entry barriers .

Bykes business model has no comparable peers. But that doesn’t translate to a moat/entry barrier. For that it must provide some form of differentiated service

• But bykes way of finding prospective properties for lease & run hotels through room chartering definitely gives it a edge over other budget hospitality chains.

• If byke achieves its target of 50,000 rooms for room chartering in 3 years,more importantly develop a working relation with hotel owners throughout the country plus cross selling of its own extended portfolio , byke may develop a ‘network’ effect .

But Lincoln pharma ratios as ROE are very low. This should be problems with company or its management.

Dear @hitesh2710 : Do you track Lincoln Pharma?

Here are some quick notes:

Lincoln Pharma established in 1979 has its plant located in Ahmedabad.They are present in 51 countries (predominantly Africa, Central Americas & Central Asia) but not in regulated markets. 55% of their revenues come from International markets. Here is the break-up of their revenues from various segments:

General anti-infectives – 25%
Respiratory Systems – 20%
Alimentary Tract & Metabolism -20%
Genito Urinary + Sex hormones – 12%
Others- 33%(the break-up is available in Investor presentation)

This is a micro-cap with a mcap of about 200 crores. On a TTM basis the company is available at a P/E of ~11.88.(low P/E is due to lack-lustre sales growth i think for the past many years) The company’s sales growth over the last many years has not been very impressive, but there are some recent positive developments.

Recent Developments:
1. Company has tripled its Unit 1’s capacity.(has 2 units)
2. Acquires 36.58% stake from Lincoln parental – This is a key development as it offers Lincoln capability to develop complete range of product under therapeutic group like Tablet, Capsule, Ointment, Injectable, Syrup, Dry Powder under Lincoln Pharmaceuticals Ltd
3. Debt reduction

I have also attached their Q1 investor presentation for your reference. LPL-2015-16-Qtr.-1-Business-Presentation.pdf (1.2 MB)

1. Will the above developments mean a meaningful turnaround for Lincoln?

2. The below snapshot also has the list of their brands. Are these run-of-the-mill products which doesn’t give this company an edge? (sourced from their investor presentation)

   

   Lincoln – Domestic.png1030×550 279 KB

Lincoln – International.png933×545 223 KB

Thanks,
Ravi S
Disc – No positions in Lincoln

1. yes the company may see the veg issue like this.but a added fallout of this is religious conservative average middle class person sees it as plus point.they are going for being marriage destination and this fact will play a crucial role.
2. also i have feel margins are good for veg food as a whole.less chances of things going wrong.
3. would request fellow boarders to comment whether this room chartering business can be considered as a moat for company.also in in case working capital requirement increases for same is it a negative even if most of is managed by internal accrual and not debt.
4. domestic travel will certainly increase after seventh pay commission.