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
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
A thread 🧵👇
#IPOwithJST
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
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)
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.
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.
Scale: Players much larger also show a lack of any improvement in metrics.
Remains a low margin & high asset turnover business.
Top customer accounts for 11% of rev & Top 10 account for 58%
Interestingly, ramped up number of customers from 97 to 204 in the last 2yrs, however, the concentration remains constant.
3-4crs spends: at 1% of sales, Increased complex portfolio to 934
Complex generic products have technical complexity in (i) manufacturing or handling of the API; or (ii) formulation; or (iii) route of delivery; or (iv) pairing with a device to make a drug-device combo.
Utilization at 35-40% currently, can go up to 60-65% before they would have to increase capacity again.
- Will look for inorganic growth
- Industry to grow at 1.25-1.5x GDP: Increased capacities inline
- To invest 50crs in Injectables facility
- Increase customer base
- Scale-up Domestic OTC & trade generics business
- Bad Cashflow conversion (20-30% EBITDA) due to huge WC investments
- Low margin business (4-5% net & 10-12% EBITDA & 35% gross margins)
- WC days to stay at 65-75 days
- Asset turnover at 4-5x & can take it to 6-7x
- Rev scaleup needs to be monitored
- Dependence on their customers doing well: 90% in B2B business
- Highly competitive, no moat & gruesome business
- Shady dealings with a promoter owned subsidiary: Windlas Healthcare
- No geographical diversification wrt plants.
- Formulations players backwardly integrating their operations: Eris doing the same as it helps them maintain consistent quality & achieve higher margins
- API prices going up (No long term contract with supplier)
- Litigations 👇
- Loss-making Subsidiaries.
At valuations of 2.3x P/S, 19x P/EBITDA & 65x PE, this is valued much higher than most Indian branded formulations are; leaving little to nothing on the table for the investors.
End of Thread.
More from ᴀɴɪsʜ ᴍᴏᴏɴᴋᴀ
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Recently, the @CNIL issued a decision regarding the GDPR compliance of an unknown French adtech company named "Vectaury". It may seem like small fry, but the decision has potential wide-ranging impacts for Google, the IAB framework, and today's adtech. It's thread time! 👇
It's all in French, but if you're up for it you can read:
• Their blog post (lacks the most interesting details): https://t.co/PHkDcOT1hy
• Their high-level legal decision: https://t.co/hwpiEvjodt
• The full notification: https://t.co/QQB7rfynha
I've read it so you needn't!
Vectaury was collecting geolocation data in order to create profiles (eg. people who often go to this or that type of shop) so as to power ad targeting. They operate through embedded SDKs and ad bidding, making them invisible to users.
The @CNIL notes that profiling based off of geolocation presents particular risks since it reveals people's movements and habits. As risky, the processing requires consent — this will be the heart of their assessment.
Interesting point: they justify the decision in part because of how many people COULD be targeted in this way (rather than how many have — though they note that too). Because it's on a phone, and many have phones, it is considered large-scale processing no matter what.
It's all in French, but if you're up for it you can read:
• Their blog post (lacks the most interesting details): https://t.co/PHkDcOT1hy
• Their high-level legal decision: https://t.co/hwpiEvjodt
• The full notification: https://t.co/QQB7rfynha
I've read it so you needn't!
Vectaury was collecting geolocation data in order to create profiles (eg. people who often go to this or that type of shop) so as to power ad targeting. They operate through embedded SDKs and ad bidding, making them invisible to users.
The @CNIL notes that profiling based off of geolocation presents particular risks since it reveals people's movements and habits. As risky, the processing requires consent — this will be the heart of their assessment.
Interesting point: they justify the decision in part because of how many people COULD be targeted in this way (rather than how many have — though they note that too). Because it's on a phone, and many have phones, it is considered large-scale processing no matter what.
On the occasion of youtube 20k and Twitter 70k members
A small tribute/gift to members
Screeners
technical screeners - intraday and positional both
before proceeding - i have helped you , can i ask you so that it can help someone else too
thank you
positional one
run - find #stock - draw chart - find levels
1- Stocks closing daily 2% up from 5 days
https://t.co/gTZrYY3Nht
2- Weekly breakout
https://t.co/1f4ahEolYB
3- Breakouts in short term
https://t.co/BI4h0CdgO2
4- Bullish from last 5
intraday screeners
5- 15 minute Stock Breakouts
https://t.co/9eAo82iuNv
6- Intraday Buying seen in the past 15 minutes
https://t.co/XqAJKhLB5G
7- Stocks trading near day's high on 5 min chart with volume BO intraday
https://t.co/flHmm6QXmo
Thank you
A small tribute/gift to members
Screeners
technical screeners - intraday and positional both
before proceeding - i have helped you , can i ask you so that it can help someone else too
thank you
positional one
run - find #stock - draw chart - find levels
1- Stocks closing daily 2% up from 5 days
https://t.co/gTZrYY3Nht
2- Weekly breakout
https://t.co/1f4ahEolYB
3- Breakouts in short term
https://t.co/BI4h0CdgO2
4- Bullish from last 5
intraday screeners
5- 15 minute Stock Breakouts
https://t.co/9eAo82iuNv
6- Intraday Buying seen in the past 15 minutes
https://t.co/XqAJKhLB5G
7- Stocks trading near day's high on 5 min chart with volume BO intraday
https://t.co/flHmm6QXmo
Thank you
