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

More from Sajal Kapoor

When a stock is trading around 15-20x sales - ask why would an accident not happen? What could be the valuations damage in that case?

Sajal Kapoor
@unseenvalue

Still waiting for those ~5 to go bankrupt. Future is unpredictable. We only need a few 100x over 15Y.

Tail-events generate the biggest panic and upside. If you survive the panic w/o jumping off the train, you deserve the 100x in few stocks.

Temperament + Business Analysis = ⤴️

@unseenvalue Hats off Sir. I compared an equal weighted portfolio of your stocks above to the 2 Coffee Can stocks Abbott & Divis and your portfolio has delivered significant upside since then
Key has to be conviction and equal weighting pic.twitter.com/6dJ1LDMSYr
— ML4TradingDoctor (@DrKRIndia) May 16, 2021

Conviction | Patience
@unseenvalue

1. Listen to various competitors
2. Put your neck on the line (invest your hard earned capital - experience comes by paying tuition fee)
3. Read non-investing books as well (Psychology, history, biographies or whatever non-fiction you like)
4. Read this :
https://t.co/6z3HvtKakL

How to augment your Sector knowledge? Follow these 5 points \U0001f447

1. The Five Rules For Successful Stock Investing by Pat Dorsey
2. Con Calls - as many as you can in that sector
3. Annual Reports - as many as you can in that sector
4. Interact with trade/channel partners
5. AGMs pic.twitter.com/2ZOx3nkC4i
— Conviction | Patience (@unseenvalue) May 18, 2019

Conviction | Patience
@unseenvalue

Affordable and Accessible research and innovation in an unseen olympics where many Indian companies win 🥇 and make the country proud. US enterprises are way ahead in cutting-edge Lab R&D, but they come to 🇮🇳 for scale-up and affordable manufacturing (CDMO model).

Go 🇮🇳 Go 👏👏

Watch the journey of\xa0Insulin Glargine's landmark USFDA approval for first interchangeable #biosimilar for the treatment of diabetes, a testament to #BioconBiologics' scientific excellence & robust quality comparibility data. https://t.co/JSM4LPqYdh
— Biocon (@Bioconlimited) August 1, 2021

Sajal Kapoor
@unseenvalue

@pushkat @LaurusLabs I don’t deserve any credit. It was your hard earned capital. You took the risk.

Business has performed due to best in class management, capabilities, capacities, patents and scientific talent that Laurus has accumulated over the years. Best is ahead 🤞🤞

More from Uvlearnings

Sajal Kapoor
@unseenvalue

Research in CDMO/APIs is never a slam dunk. It may take ages to yield results. CEP filings can be lumpy as a result. As I wrote last year (link below), Hikal has been consistently sacrificing operating profits for a sustainable future. Best is ahead 🎥 🍿

https://t.co/hItmOud8Pm

#Hikal has stepped up R&D in recent years. Next few years (capex & launches) should yield superior earnings. Wish them all the luck \U0001f44d

D: invested and biased view for sure, but it was below 1x price to sales vs 12x price to sales for many chemicals and generic players. No reco!! pic.twitter.com/aqPUKbziHK
— Sajal Kapoor (@unseenvalue) September 26, 2020

Value Educator
@ValueEducator

Thread on Drug Development process 🧵

Hit like & Retweet for more learnings ! 💊🧪🩺💉
@unseenvalue

Topics Covered :
1.Introduction to CRO,CDMO,CMO & CRAMS
2.Discovery
3.Clinical Trials
4.Commercialization and Surveillance
5.Success Rates
6.CRO
7.CMO
8.CDMO
9.CRAMS

1. Introduction :
What are CROs, CDMOs, CMOs and CRAMS? How are they different from each other and what value do they add to the Pharma Value Chain? To understand these concepts, we took a look at the drug discovery process.

The APIs manufactured by our Indian players lie at the end of this value chain. There is a whole process that comes before it that takes a lot more time and costs a lot of money.

On average, it takes about 10 to 15 years for a drug to make it to market. It costs hundreds of millions, if not billions of dollars to bring one drug to market.

A drug goes through 3 big phases on it’s way to make it to market - the discovery phase, clinical testing phase and the commercialization phase. Once we understand these phases, it makes it easy to understand the role of CROs and CDMOs

Sajal Kapoor
@unseenvalue

There are many such from @oraunak @soicfinance @jeevanpatwa and https://t.co/208eQbYKEF #22 by @tusharbohra

My advice would be - invest time in researching how and why synthetic biology and #biotechnology be disrupting many petro derived chemicals, textiles and other materials.

$Tar \u26a1$

Tar ⚡
@itsTarH

Fun Insights from my Portfolio

Deepak Nitrite generates more Cash from Operations than Laurus Labs.

Deepak Nitrite: 999cr
Laurus Labs: 733cr

Deepak grew its CFO by ~30% YoY while Laurus grew its CFO by more than~100% YoY

Sajal Kapoor
@unseenvalue

@harindersnanda @FortuneIndia https://t.co/64WUswITen

Listen to this one (timestamp 2:35)
#KRAS mutation

In the spring and summer of 2016, as reported by the Times, activity we traced to GRU was reported to the FBI. This was the standard model of interaction companies used for nation-state attacks against likely US targeted.

In the Spring of 2017, after a deep dive into the Fake News phenomena, the security team wanted to publish an update that covered what we had learned. At this point, we didn’t have any advertising content or the big IRA cluster, but we did know about the GRU model.

This report when through dozens of edits as different equities were represented. I did not have any meetings with Sheryl on the paper, but I can’t speak to whether she was in the loop with my higher-ups.

In the end, the difficult question of attribution was settled by us pointing to the DNI report instead of saying Russia or GRU directly. In my pre-briefs with members of Congress, I made it clear that we believed this action was GRU.