Q4FY21 Concall Notes

All in One document

168 Pages

56 Companies

18 Sectors

100+ Hours

Hit Retweet & Let's Learn Together

Syngene & CRAMS are synonymous in the Indian stock market today.

From Early Discovery to Commercial Supply

NMEs cater to

~Pharmaceutical
~Biotechnology,
~Nutrition
~Animal health
~Consumer goods
~Speciality chemical

In this thread, let’s deep dive into their FY20 AR

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Syngene works with clients from around the world to find solutions to their research, development, and manufacturing challenges for small and large molecules while improving productivity, speeding up time-to-market, and lowering the cost of innovation.

Syngene At a Glance

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Plans

~Capacity Addition
~Capacity Expansion
~Partnering for Success

Vision: “To be a world-class partner delivering innovative scientific solutions”

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Kiran Mazumdar Shaw, Chairperson’s Message

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Jonathan Hunt, MD & CEO’s message

5 MIN STOCK IDEA

GALAXY SURFACTANTS

25 Big Lessons From The Latest One Percent Show.

Let's Go!

@safalniveshak @iancassel

1. What matters the most to Ian?

Reading, writing, researching and networking/relationship. If he ticks all the four boxes regularly, he feels super productive and happy.

2. Learnings he got from his first mentor in the casino.

I. In your lifetime, you will own a dozen great stocks.
II. Bet small until you know that your betting right. Lean towards winners.
III. Everybody gets attracted to the winners.
IV. To win big, be ready to lose small.

V. If you can't build confidence, you won't be able to sell your idea to others.
VI. If you invest for a 2X, you must invest in a stock where the market thinks the stock can be a 3X.
VII. Speak to managements and make yourself likeable.

3. Eight filters for selecting a microccap

Top-Down

i Tailwinds
ii Scarcity
iii Story
iv Undiscovered

Bottom-up
i Recession-proof business
ii Balance Sheet strength
iii Intelligent Fanatic Leaders
iv Valuation

Financials are strange businesses. On a sale, money goes out from the pocket rather than coming in.

Growth comes first. NPA comes later.

Aavas Financiers says: “What Kills Others Makes Me Strong”

Buckle yourself up as we’ll take you through the 19-20 AR

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Challenges for Aavas:

~People, Process & Branch intensive
~Caters to Tier2 to Tier 6 towns
~Underwriting difficult
-Lack of docs
-No CIBIL records
-Mostly catering to EWS and LIG category

Now let’s run past the AR to find the cues to their success

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Aavas Financiers

A Fast-growing Small Housing Finance Company in a Large Growing Housing Finance Market in India

A Fast-growing Small Fish in a Large Growing Pond

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~The Chairman
~The CEO
~The CFO

See what they say

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~Strategic Objectives
~Credit Risk Appraisal Framework
~How Aavas is Being Different

Some lovely quotes from the book, “Alchemy: The Dark Art and Curious Science of Creating Magic in Brands” by Rory Sutherland.

If you read them, you will not be able to stop yourself from buying the book and read it.

A thread!

Here you go

1. The economy is not a machine – it is a highly complex system. Machines don’t allow for magic, but complex systems do. Engineering doesn’t allow for magic. Psychology does.

2. When you demand logic, you pay a hidden price: you destroy magic.

3. The human mind does not run on logic any more than a horse runs on petrol.

4. Human behaviour is an enigma. Learn to crack the code.

5. To avoid stupid mistakes, learn to be slightly silly.

6. More data leads to better decisions. Except when it doesn’t.

7. Being slightly bonkers can be a good negotiating strategy: being rational means you are predictable, and being predictable makes you weak.

8. We could never have evolved to be rational – it makes you weak.

9. If you are wholly predictable, people learn to hack you.

10. The record of science in some ways casts doubt on a scientific approach to problem-solving.

11. Be careful before calling something nonsense.

12. The opposite of a good idea can also be a good idea.