One of the most unique managements who have taken bold bets in the past which have paid off. How will the future pan out?

To read about the business and the opportunities🔗|Natco Pharma Chasing optionalities: https://t.co/LBqehxpiAa

by @Ankush__Agrawal

Once invested it's your duty to look for Anti Thesis pointers/disconfirming evidence. Don't get caught up in echo chambers. Investing is lonely because of this

Forget the Quant&Algos who entered last week and drove the volumes. For a long-term investor, today's concall was music to the ears. Effectively the intrinsic value expands as we take pains in the short term to grow even better in the long run🐶🐕🎵

Sequent 2.0+ by 2025 🎥🎥

Commandments of Investing Success!

Some of the key principles of investing that have helped me in my journey.

Retweet for Max reach!

🧵🧵🧵🧵🧵🧵🧵🧵

Commandment 1

Investing is a game of probabilities and not a game of possibilities. First thing that is the most important is to adapt your investing philosophy to your own circumstances. Eg:- if you are able to give less time to research then it is foolish to buy

concentrated positions or companies that are just emerging with a higher allocation.

Commandment 2

This is the one where I have been burnt in the past. Hopefully I have learnt my lesson, always pencil in conservative growth estimates. Let the business beat your low

expectations and then take a victory lap. At the end you are here to compound your capital and not look like a hero.

Commandment 3

Have both concentration and diversification work for you. Make a portfolio of 12-20 stocks. Look for different themes. Concentrate in your top

Positions (10-11 stocks) and the other stocks should be like football players who are warming the bench and willing to play as soon as they get on to the pitch to replace any stock (one) who is injured or cannot continue to play.

Why Indoco Remedies looks Interesting and why FY22-24 growth is likely to be stellar here?

Time for a thread🧵🧵🧵🧵

(Source for ophthalmics data:Nirmal Bang and rest is own work)

Looking at the incremental opportunity in Ophthalmics:-

Market size is not attractive for the Large Generic companies but for someone like Indoco which has a smalll base in exports business

As per the USFDA’s orange book, for Ophthalmic suspension drugs, only 3 out of 17 molecules have an active patent. Among the 14 molecules that are patent expired, 8 molecules are yet to see generic
competition.

Even for the one’s which have seen generic competition, the competitive intensity is very low and there is space for an additional entrant.. Entrenched players like Novartis, Bausch & Lomb and Abbvie have dominated this market with legacy products for decades.

Indoco Remedies and Sun Pharma are the only Indian generic manufacturers to have successfully won approvals for generic version of Ophthalmic suspensions in the US market. Indoco Remedies has recently launched generic version of Azopt (brinozolamide)

A word of advice and caution. When you buy a High Pe stock. Make sure that you are very certain about the growth. Plenty of good and bad examples

Eicher=Growth stopped, Got derated.

Pi Industries= At 52+Pe in 2015, growth continued (5bagger since then)

Symphony=Growth stopped as more competitors copied them, painful time correction.

Astral=Kept growing and entering newer adjacencies since 2015 when it was at 60+ Pe. (Been a 10 bagger since then)

Page Industries=Growth stopped as the company matured. No returns for last 4 yrs.

Bajaj Finance= Kept growing (barring Pandemic). Kept rerating with the earnings growth.

HDFC Life=Been absurdly valued since 2018. Leading to very poor returns.

Relaxo=Kept getting rerated on back of earnings growth.

High Pe means market is expecting strong earnings growth. What happens when it fails to come? Likely derating or painful time correction.

Paying a high multiple, you need to make sure that the growth is certain.

What I do to grasp such opportunities or to ignore them is to have a mix of deeply valued companies (like some financials I own) with Companies where I think they will grow at 30-35%+ (Navin).

This is what my framework is:-

Pf=High Pe+Already seen value+Strong earnings growth

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?

Syngene is delighted to share that we are part of Fortune India’s Top 100 Wealth Creators list for 2021.
The criteria involved being a listed company with a 5-year CAGR of 7.5% plus in terms of market cap, revenue &profit (2017-21).
#FortuneIndia #Syngene #FortuneList #CDMO
1/5

Those incurring a net loss in any of the 5 fiscals (2016-20) were filtered out. The final 100 were based on firms having revenues of Rs 300 crores or more in FY20.
2/5

Key to our success has been our growing clientele who regard us more as a strategic partner with flexibility to work across a spectrum of clients -MNCs to start-ups. We also have a consistent client retention rate of 90%.

#strategicpartnership #clientele #USA #Europe #Japan
3/5

On the range of #scientific work being done at Syngene, our CEO, #Jonathan_Hunt is quoted as saying: “The minute you come into our campus, you can travel the world, scientifically – we do that degree of knowledge-intensive work here”.
#Biopharma #CRO #CDMO #CMO #CRDMO
4/5

Our winning formula? Capability to offer integrated services across the #DrugDiscovery, Development, Mfg continuum under one roof; Lean Sigma way of operations; Quality of our work. All this built on the foundation of world-class talent.
#DrugDevelopment #Scientists
5/5

Proof of pudding is in eating

https://t.co/WhcL2pcTaJ

#Biocon @RemindMe_OfThis on 1 May 2022

@unseenvalue "Everybody hears, reads, and speaks about artificial intelligence, the power of advanced analytics on top of big data, and how these techniques will change the world as we know it in the most dramatic way" - Digital Technologies in Pharma R&D at