Pharma learnings 101:

Higher the difficulty to manufacture, Lower the competition, Higher the pricing power.

Higher the regulatory oversight, the Bigger is the moat for those who comply.

#PharmawithJST

Krsnna Diagnostics IPO notes: 'Let's do Good' ❓

Hit the 'retweet' & help us educate more investors

A thread 🧵👇

#IPOwithJST

1/ Basics about the IPO

Issue Dates: 4 - 6 August
Issue Size: ₹ 1,211 Crore (400crs Fresh Issue & 811crs OFS)
Mcap at the upper band: 2994crs
Price Band: ₹ 933 - 954
Retail Quota: 10%

Promoter stake to go from 32% to 27% post IPO.

2/ About the company.

Krsnaa Diagnostics provides technology-enabled services such as imaging (including radiology), pathology/clinical laboratory, and teleradiology

to public and private hospitals, medical colleges and community health centres across India.

3/ They focus on the public-private partnership (“PPP”) diagnostics segment and have the largest presence in the diagnostic PPP segment.

Contracts are typical of long-term in nature.

Won 77.6% of all tenders since inception & have thus deployed 1823 diagnostic centers.

4/ Operational performance indicators

The Business Model of Indian Hospitals Simplified.

“We are blessed to be living in a country where the cost of healthcare is the lowest in the world.” ~Dr. Devi Shetty, Narayana Health

A thread 🧵👇

1/ In the Indian healthcare delivery market; the pharmaceuticals market is 20% of the pie. While Hospitals market is 3x that of theirs.

Big opportunity size, however, is it investment-worthy? Let's see.

2/ Before we get into the details:

Do brush up on the different abbreviations associated with the Hospitals & the Pharmaceuticals industry in General, for example ALOS, ARPOB, NABH, etc.

Inpatient (IPD): Need to get hospitalized
Outpatient (OPD): No need to get hospitalized

3/ The hospitals are of basically 3 types:

Primary: For OPD only (no beds), sends to below hospitals for further treatment

Secondary: IPD & OPD in medium-sized general hospitals

Tertiary: Can treat all complex ailments & huge in size, Major listed companies are focused here.

4/ Hospitals can also be classified based on Ownership & management:

Here, the listed companies either are in private or manage hospitals owned by others (Asset light business, due to the very high land prices in metro cities)

What if I told you to submit your PhD report by the 1st year of your BTech in engineering.

That’s what people do when they try to find multi-baggers in their 1st business cycle.

Glenmark Life Sciences (GLS) IPO notes 🔬

Plans to take the capacity to 1762KL (currently 762KL) in the next 4 years.

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#IPOwithJST

1/ About the company

Developer & manufacturer of high value, non- commoditized APIs (complex & low competition) in chronic therapeutic areas: CVS, CNS, pain management & diabetes, etc

Basic details about the IPO 👇

Note: After paying off liabilities, 150crs remain for capex.

2/ The Journey

Established the API business in FY02

Since 2015, Have not received any adverse reactions from regulators (USFDA, PMDA) in the total 38 audits & inspections & Have gone through 432 customer audits.

Filled 403 DMFs & CEP registration across markets globally.

3/ Trends that the company is betting on & what works for them

China+1: India API market growth (10% cagr projected from FY21-26) will outpace the industry: Driven by specialty API+ Strong domestic market

Highest no. of USFDA approved API facilities & % of DMFs filled

4/ Interesting facts

- 120 molecules: $142B market size
- Targetting 8 to 10 new molecules every yr (Key differentiator over time)
- 66% of sales from regulated markets
- Works with 16 of the top 20 generic cos.
- Top 7 customers: 5 to 15yrs old

Windlas Biotech IPO notes 💊

'What's in a name? that which we call a rose by any other name would smell as sweet' ~Shakespeare

Hit the 'retweet' & help us educate more investors

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#IPOwithJST

1/ Basics about the IPO 👇

Incorporated in 2001

Fresh Issue of 165crs (50 for capex | 48 for Working capital | 20 for debt payment) + OFS of 237crs (Partially by promoter & PE Tano selling out as the fund tenure is up)

~ Total raise of 402crs

2/ About the company (Not a Biotech company)

A Contract manufacturer for formulation cos. (204 in total) for Indian markets & a small domestic OTC biz

3279 products, 4 plants with 700cr tablets/capsules capacity

Emphasis on chronic (60% of rev) & complex generics (70% of rev)

3/ History

Revenues:
FY11 - 100cr 👉 FY14 - 200cr 👉 FY21 - 400cr

Growth is similar to the Indian pharmaceutical sector, not gaining any market share even after increasing products.

Customers include Pfizer, Sanofi India, Eris, Cadila, etc.

4/ Competition: No Moat

400+ organized & 15000 unorganized players in the same space: 2% market share

Some of the things that can drive consolidation: Customers preferring better compliance

However, a single customer usually has 35-40 contract manufacturers for products.

Thread :

#asianpaints (Weekly)

- A stock moving with a healthy momentum and reasonably good trajectory.

- I assume that It may come down to touch it's primary support trend line as it did in the past.

-If it do so, It will be a "must buy" opportunity.

Tip:
a) 30°-45° inclined trend line is considered sustainable.
b) Steeper trend line angle can not sustain for a long period of time.
c) Exceptions are always there.
d) To beginners : Explore more related to trend line inclination angle and relate this with above chart.

A thread on the summary points of webinar by @ishmohit1 at @ias_summit last week on Navin Fluorine moderated by @MashraniVivek & @cautkarshpandey

@ias_summit @MashraniVivek @cautkarshpandey Overview of Fluorine Industry:
Fluorine is made out of raw material which is known as Fluorspar. China contributes to 60% of mining of Fluorspar. Due to environmental concerns, China has cut back on fluorspar mining and processing. Fluorine is replacing toxic chemicals.

@ias_summit @MashraniVivek @cautkarshpandey Different types of products within the flourine industry:
• Fluorospeciality: Agro, Pharma, Industrial and other uses. High Margins
• Fluoropolymers: Commodity-grade and value-added. Commoditized + High Margins in VAP
•Inorganic Fluorides: steel and glass industry. Low Margins

@ias_summit @MashraniVivek @cautkarshpandey • Industrial chemicals like Chloromethane.
• Pharma Propellent: used in Metered Dose Inhalers as a propellant

@ias_summit @MashraniVivek @cautkarshpandey Navin Fluorine:
Navin is a business which is a backward integrated and for Fluorspar they have a tie up with Gujarat fluorochemicals and and GMDC and they source all their floors from Africa.

Strong Monopolies:

IRCTC 100% Market share in Rail Network.

IEX >90% market share in power trading.

Zydus wellness >90% market share in sugar free product.

Eicher motors >85% market share in 250cc bikes category.

MCX >85% market share in commodity trading.

Coal India >80% market share in coal production in India.

ITC >75% market share in cigarettes.

Honda Siel >75% in portable power generators.

Hindustan Zinc >75% market share in primary zinc industry.

Asahi India Glass >70% market share in automotive glass.

NRB Bearings >70% market share in needle roller bearings.

Pidilite >65% market share in adhesives.

CAMS >65% market share in RTA within mutual fund industry.

Time Technoplast >65% market share in polymer based industrial packaging.

Concor >65% market share in domestic container cargo transport.

Exide >60% market share in lead batteries.

Naukri >60% market share in the Indian job market space.

Praj >60% market share in ethanol plant installing.

Indiamart Intermesh >55% market share in the online B2B Classified space.

Borosil Renewables >55% market share in Lab glass.

Vst Tillers >50% market share in
Power tillers.

Delta corp >50% in online poker games.

Vinati Organics >50% market share in IBB.