Conviction | Patience's Threads

@punitbansal14 Every single CDMO/API I’ve spoken about has still many many unseen angles. Below is a small example. Last added @LaurusLabs near 330 last year and immediately disclosed that I’ve added. Nothing sold since. Waiting for correction to add more 🙏🏻

Keywords: Many many unseen angles

Sajal Kapoor
@unseenvalue

Private Equity is "smart money". They enter only when there is a potential to unlock value.

CVC Capital (#HCG)
Carlyle Group (#SeQuent)
#Biocon Biologics (True North)
KKR (in talks to buy a controlling stake in #JBChemicals & Pharmaceuticals)

| Smart money is after my holdings!

Healthcare is a big (correction : very big) opportunity with a multi-decadal growth runway looking at the demographics and decades of underinvestment in India.

Keep averaging-up as the business performs.

Not easy.

Capacity to suffer consolidation/underperformance is paramount.

Sajal Kapoor
@unseenvalue

If you were born in June and you're competent and trustworthy and hold CEO and CFO designations in a good Business and a good Industry Structure - you can stay ahead of the curve and create wealth.

Keywords :: June And Competent Trustworthy CEO CFO Business Industry Structure

Sajal Kapoor
@unseenvalue

Most stocks are fit for short term trading. Not every business will compound wealth over the long term. Some commonly used proxies for long term compounding 'potential' (in alphabetic order) ::

Cash flow per share
Earnings per share
Scientists per share
Tweets per share

Sajal Kapoor
@unseenvalue

FCF = Free Cash Flow (Operating Cash after adjusting for working capital - total Capex)

MCap is based on last Friday's closing.

Q :: What stocks?
A :: “Bhaiya Ji Smile ... Kamaal karte ho Pandey jee ...” 😅

Disc: invested in the 3 businesses at single digit MCap/10Y FCF 😉

Conviction | Patience
@unseenvalue

@connectgurmeet Real estate - unseen exposure

Playing real estate and home improvement structural story in \U0001f1ee\U0001f1f3 via a focused proxy consumption \U0001f9fa

1. Asian Paints
2. Pidilite
3. SHIL (Hindware portfolio)
4. Fragrance SpecChem (Kelkar & Fairchem)

Consumption | Proxy Consumption
— Conviction | Patience (@unseenvalue) January 10, 2020

Sajal Kapoor
@unseenvalue

In hindsight this is how a gruesome business would look like ::

Pricing power

Sticky and mandatory consumption

30-35% ROCE once optimal capacity utilisation is reached and asset has depreciated

170x stock returns excluding dividends over 25 years

D: I’ve been averaging up

Conviction | Patience
@unseenvalue

@oldschoolinvest I said 20-25% #CDMO (Synthesis) growth going forward in @IIC_Conference June 2020 conclave. They have delivered better than my expectations.

Never Knowingly Misguide.

Money making and fake advisory/PMS propaganda has never been my agenda

In just 15 years, #LaurusLabs has scaled up like no other..!

Numbers v Narrative: Well balanced 2800 Cr sales + huge competitive advantage in terms of IP/patents/synthesis capability!

Comparing Laurus with others - 1 hrs 28 mins\U0001f447https://t.co/Zzx6AwHZLH

Conviction | Patience pic.twitter.com/I6bImfjDCW
— Conviction | Patience (@unseenvalue) July 5, 2020

Sajal Kapoor
@unseenvalue

My interaction with @ETNOWlive earlier today on a variety of topics - Consumption, Healthcare, IPOs to name a view.

Sajal Kapoor
@unseenvalue

Bolo Jaikara Bicara 🇮🇳🇺🇸

#Bicara presented clinical data from the lead immunotherapy program, BCA101, at ASCO 2021 - June 2021

Title: First-in-human phase I study of the bifunctional EGFR/TGF\u03b2 fusion protein BCA101 in patients with EGFR-driven advanced solid cancers

Unseen Bicara Pipeline\U0001f9ec https://t.co/bMhtUEnw0C pic.twitter.com/cz6V5BLeuc
— Punit (@punitbansal14) June 17, 2021

Sajal Kapoor
@unseenvalue

Domestic pharma's Acute was disrupted in FY21 due to Covid and most businesses are sitting on a low FY21 base. They can grow handsomely not only this fiscal, but also medium to long term. If a debt-free businesses can do 20-25% ROCE despite Covid, what can be the FY23e EV/Sales?

Sajal Kapoor
@unseenvalue

Animal Pharma innovators are actively looking at competent, reliable API/CDMO partners.

"We predict that the sourcing, partnering, development and funding of innovation will be more transformational and significant the next five years than ever before in animal health" - #Elanco

Sajal Kapoor
@unseenvalue

Tomorrow is 3rd Thursday of this month 🙂

Conviction | Patience
@unseenvalue

Barsaat ke mausam main ...
Tanhai ke aalam main ...
🎼🌈
Abhi zinda hoon to jee leney jee leney do ...
Bhari barsaat main Tata Chai pee leney do ... @connectgurmeet

Invested from lower levels. Not for trading. No reco.

Conviction | Patience
@unseenvalue

ACDEGTVZ 🇺🇸 and SBLSKRP2 🇮🇳 are an unequal weight "genetically modified" high 🔥🔥 global 🧬🧬 basket.

Emphasis : "unequal" weight. In a Sunday buffet - can have extra large portion of what you really enjoy eating, by ignoring other not so tasty or healthy things 🧫🧬

Sajal Kapoor
@unseenvalue

Dumb Retail Investors to Smart Institutional investors :: for this API to FDF to CDMO to Biotechnology synthesis

धीरे धीरे से मेरी company में आना 🎵🎶
धीरे धीरे से share को उठना 🎻

......
......

तुमने wait किया है इतना जानेजाना

Sajal Kapoor
@unseenvalue

If cash flow is not growing / compounding - why do you expect the share price to make newer ATHs ?

Ultimately, the stock price is a function of underlying business and the quality of cash flows

"Quality vs Quantity" of cash matters. Small and Mid Pharma have outperformed Large!

Conviction | Patience
@unseenvalue

Many stock specific questions on my DM or otherwise remain unanswered. Have shared my thesis, process/framework over many months and would encourage you all to find your own process that suits your very own genome. Learn to do that hard leg-work. Put that effort. Survive. Thrive.

[Free CDMO Masterclass #18] https://t.co/208eQbYKEF

[Free Art of Investing] https://t.co/bHvUqnpiTE

[Paid IIC Dec 2020 on SeQuent] https://t.co/3iDO438Et9

[Charity fund raise on Unseen Trends in Biotechnology] https://t.co/eNi1x1qwhH

[Q&A on APIs] https://t.co/EQGz007a9S
— Conviction | Patience (@unseenvalue) July 25, 2021

Sajal Kapoor
@unseenvalue

Proof of pudding is in eating

https://t.co/WhcL2pcTaJ

#Biocon @RemindMe_OfThis on 1 May 2022

Conviction | Patience
@unseenvalue

Biosciences is the space to track and follow globally. Sector offers extra large opportunity landscape. Shared the full thesis in that April webinar. Convinced that 🧬 will throw many big compounders in next few years.

#Fermentation #Biotechnology

SAnngeri Authors Conviction | Patience