How to sell a old holding is a challenge initially.

1. There is a price comfort you bought at 100 it is 300 today u feel you will not loose from here as your cost is low.
2. you dont bother much about its movement in price as its long term holding .
3. The fear of loosing money in new idea gets to a decision paralysis

My take – Investing should be looked at as a pure business. Money is raw material , appreciatio is profit , brokerage accounting cost and tax are expenses.

I started doing this with 1 old stock where i felt this will surely not go anywhere on upside ( it did though ) Castrol India. Business which didnt have much growth only dividend was a sweetner.

Try to sell 1 old stock replace with a good idea or 2 good ideas basis allocation. Track for year or 2 . If things work your way if markets proves us to be right dip your feel a little more and then a little more.

I still keep a track of old stocks which i sold what i bought in excel to know if my decision more or less is correct. I prefer to be 60% -70% right . You will go wrong on few ideas .

On portfolio –

I had a few concentrated bets in 2016-2017 winners take leading postion when you dont do much for decades and couple of tail .

PF was arpund.30-40 stocks .

I took 6 months and decided i will sell all stocks below 2-3% of PF so tail was out .

Now i prefer couple of them i dont have a count of stocks i want in portfolio. My smallest position is 3% starting position to begin with and i add eventually basis result and outlook. Largest i have gone upto 20% . Top 3-5 position would be 50% or more. Thats how i would prefer

On stocks – I have added couple of them as i sold elecon cash portion was huge chunck of it got deployed to Time techno ( bought it couple of months back ) Lately i have been looking and adding into comapny making GLP 1 pens and Geospatial space .

Disc – Added lately to sectors above hold position may add / reduce position without informing. Not a advise . Not a sebi registered advisor / not qualified to advise. Sharing views to help in the lonely journey of investing

Gayatri Rubbers and Chemicals Ltd
https://www.screener.in/company/GRCL/
https://nsearchives.nseindia.com/corporate/GRCL_12112024152119_GRCLpresentation.pdf.

Disclosure:
Not invested in past or present and do not plan to invest in future.
The share is SME platform listed, trading in ESM 2 framework, heavily cornered and extremely costly.

Mankind Pharma –

Q2 FY 25 results and concall highlights –

Revenues – 3077 vs 2708 cr, up 14 pc
Gross Margins @ 71.6 vs 69.5 pc
EBITDA – 850 vs 683 cr, up 24 pc ( margins @ 27.7 vs 25.2 pc YoY )
PAT – 659 vs 511 cr, up 30 pc

Cash on books @ 4255 cr on 31 Sep vs 3260 cr on 31 Mar

Domestic : International sales @ 91:9

Sales breakup –

Domestic formulations – 2564 cr, up 10 pc
Consumer OTC products – 232 cr, up 20 pc
International formulations – 281 cr, up 57 pc

Share of Chronic sales @ 38 vs 37 pc YoY ( Chronic therapies often have substantially higher margins vs Acute therapy segments ). Company’s chronic share in FY 18 was @ 28 pc

Company’s rank in IPM in their strong therapies –

Cardio – 4
Anti-Diabetic – 5
Anti-Infectives – 4
GI – 4
Respiratory – 5

Company is currently ranked 4th in the IPM

OTC sales growth in Q2 led by strong growth in – Manforce, GasOFast, HealthOK brands. There OTC brands like – AcneStar, PregaNews, Unwanted72 are also doing well

Some of the speciality brands launched by the company in last 2 yrs –

Neptaz ( heart failure ) – in-licensed from Novartis

Crenzlo ( high LDL ) – in-licensed from Novartis

Nobeglar ( type 1 Diabetes ) – in – licensed from Biocon

Combinable ( Obstructive pulmonary disease ) – acquired from DRL

Symbicort ( Obstructive pulmonary disease ) – exclusive distribution arrangement with AstraZeneca

Daffy ( Pediatric skin and hair care ) – acquired from DRL

Vonatime + Vonalong ( Gastroesophageal reflux disease ) – in – licensed from Takeda

Company had acquired Bharat Serum and Vaccines in Q2. The consolidation of BSV results with Mankind shall begin wef Q3. Their high entry barrier, difficult to make, speciality products in Women’s healthcare and Critical care are expected to drive a lot of growth for Mankind Pharma in India and EMs. Their products are going to be EBITDA accretive for Mankind Pharma

Company aims to maintain Net Debt / EBITDA ratio below 2 while funding this acquisition. Hence is expected to raise some equity for the said acquisition

R&D expenses in Q2 were at 2 pc of sales

Company has raised a Debt of Rs 10k cr @ avg interest rate of 7.7 pc in order to fund the BSV ltd’s acquisition. Company intends to retire a part of this debt via the equity raise that they have planned

BSV business has multiple growth levers that can be exercised immediately. These are – organic base business growth of BSV, improvement in MR productivity ( which is sub-optimal at present ), distribution expansion under Mankind. The Gross Margins of BSV’s brands is > 70 pc ( similar to Mankind’s business )

Company’s brand of Dydrogestrone ( generic of Abbott’s Duphaston ) – Dydroboon grew at > 20 pc in Q2 YoY

Company is guiding for 15 pc kind of topline growth for the BSV’s business in FY 25 with EBITDA margins in the vicinity of 26-28 pc for full FY 25 ( FY 24 revenues were 1723 cr )

In the OTC business, expect high single digit growth this FY and double digit growth in FY 26. OTC business is expected to clock EBITDA margins in the range of 18-20 pc for foreseeable future

Company intends to retire all the debt that its taking up for the BSV’s acquisition

Company also has some non-core assets that the company is planing to sell off to further accelerate the debt repayment. Should be able to get 600-650 cr valuation on these non-core assets

The equity raise for the BSV acquisition should be around 3000 cr

The overall export sales should grow @ > 20 pc for BSV’s portfolio ( across mkts – ASEAN, LATAM, GCC etc ). BSV export business’s export margins are > domestic margins

The exports that Mankind is doing have EBITDA margins of around 20-21 pc ( higher than their OTC but lower than their domestic formulations business )

Oral contraceptives have now been brought under price controls. This has led to price erosion in the company’s brand – Unwanted 72

Disc: holding, biased, not SEBI registered, not a buy / sell recommendation

CMP of OCCl Ltd is 97 rs…
Whether seems like highly discounted or under valued after it demerger?