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#AartiDrugs Q3 FY22 concall highlights ๐๐
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1. The financial performance is not exactly comparable especially in terms of realizations and margins because of elevated API prices driven by COVID related issues last year.
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1. The financial performance is not exactly comparable especially in terms of realizations and margins because of elevated API prices driven by COVID related issues last year.
2. The company posted robust growth in revenues and margins on a sequential basis despite high freight costs, elevated coal prices and high RM prices.
3. Standalone Q3 revenue stood at โน594.8 Cr (24.9% growth YoY). The standalone business contributed ~91% to the consolidated revenue for the quarter. 59% of the revenues came from the domestic market and 41% from the exports market for Q3FY22.
Insights on the Indian API, Formulation and CRAMS via a recent report from o3 Capital.
Tailwinds (China+1): 10% market share switch from China can double Indian API market.
Headwinds: Rising input costs in China due to power outage + freight hike. India has high dependency.
1/n
Tailwinds (China+1): 10% market share switch from China can double Indian API market.
Headwinds: Rising input costs in China due to power outage + freight hike. India has high dependency.
1/n
2/n
Indian API landscape
Scale, capacity, DMF filings, focus segments/ therapy areas and leading products.
#Divis #LaurusLabs #Granules #AartiDrugs #Solara
Indian API landscape
Scale, capacity, DMF filings, focus segments/ therapy areas and leading products.
#Divis #LaurusLabs #Granules #AartiDrugs #Solara
3/n
Growth strategies adopted by API companies
- Diversifying beyond API and CRAMS into Formulations, Biologics and Nutraceuticals.
- Laurus: Forward integrated into drug development via contracts from NATCO, Citron, Dr. Reddy + foray into new markets + new segments (Biologics)
Growth strategies adopted by API companies
- Diversifying beyond API and CRAMS into Formulations, Biologics and Nutraceuticals.
- Laurus: Forward integrated into drug development via contracts from NATCO, Citron, Dr. Reddy + foray into new markets + new segments (Biologics)
#valiantorganics Update :
1. OA capacity expanded to 4800 MT
2. ONA (Raw material for OA) capacity increased to 7200 MT. It will increase the margins. (New Product)
3. #PAP #paraaminphenol Production started. 200 MT in Q1 and expected to be 2300 MT in FY22. Total capacity 9000MT
1. OA capacity expanded to 4800 MT
2. ONA (Raw material for OA) capacity increased to 7200 MT. It will increase the margins. (New Product)
3. #PAP #paraaminphenol Production started. 200 MT in Q1 and expected to be 2300 MT in FY22. Total capacity 9000MT
4. Increased the stake in bharat chemicals from dhanvallabh venture LLP ( from 40 to 50%)
5. #bharatchemicals capacity of #paracetamol increased to 9000 MT
6. Raw material price increased in Q1, which will be passed on in Q2. #OA,#ONA,#PA,#PNA,#PAP will started contributing
5. #bharatchemicals capacity of #paracetamol increased to 9000 MT
6. Raw material price increased in Q1, which will be passed on in Q2. #OA,#ONA,#PA,#PNA,#PAP will started contributing
7. New capex for #apis (chemicals for APIs). Mostly for apis manufactured by #aartiindustries and #aartidrugs
Intermediates will be manufactured for following APIs :
1. Ranolazine
2. Benazeprill
3. Elagolix
4. Pranlucast
5. Moxifloxacin
6. Ramipril
7. Montelukast
8. Quinapril
Intermediates will be manufactured for following APIs :
1. Ranolazine
2. Benazeprill
3. Elagolix
4. Pranlucast
5. Moxifloxacin
6. Ramipril
7. Montelukast
8. Quinapril
๐๐ฟWhy I believe this #multibagger #Lauruslabs can be a 4 digit stock from here on
โก๏ธShort //Thread\\
In Q4 FY21:
โ Formulations revenue grew 60.9% YoY to Rs. 430 crore
โ CRAMS business grew 19.0% YoY to Rs. 176 crore.
โ EBITDA margins improved 1059 bps to 33.4%
(cont..)
โก๏ธShort //Thread\\
In Q4 FY21:
โ Formulations revenue grew 60.9% YoY to Rs. 430 crore
โ CRAMS business grew 19.0% YoY to Rs. 176 crore.
โ EBITDA margins improved 1059 bps to 33.4%
(cont..)
~ #Laurus has planned a capex of Rs. 2400 Cr in next 36 months through internal accruals.
~As per mgm guidance it will have a sales of over 7000 cr in FY23.
~With healthy margins & RoCE of 35%+ we can assume Profits upwards of Rs. 1450 Cr which gives a FY23 EPS >Rs. 27
(cont)
~As per mgm guidance it will have a sales of over 7000 cr in FY23.
~With healthy margins & RoCE of 35%+ we can assume Profits upwards of Rs. 1450 Cr which gives a FY23 EPS >Rs. 27
(cont)
Moderating its Growth from 40%+ in the past to a more reasonable 30% in FY24 will take its sales over Rs. 9000+ Cr.
With healthy FCF & 35%+ RoCE (1.3/1.4 times of asset turn x 28%+ EBIDTA) it will generate profits in upwards of Rs. 1950 cr. giving it an FY24 EPS of Rs.36+
(cont)
With healthy FCF & 35%+ RoCE (1.3/1.4 times of asset turn x 28%+ EBIDTA) it will generate profits in upwards of Rs. 1950 cr. giving it an FY24 EPS of Rs.36+
(cont)
#MULTIYEAR #BREAKOUTS #STUDY with examples
But first some key points
There is no Definition of Multiyear breakouts. But if the stock breaks out of its range or any other pattern after 5+ years then it can be considered as multiyear breakout.
...
But first some key points
There is no Definition of Multiyear breakouts. But if the stock breaks out of its range or any other pattern after 5+ years then it can be considered as multiyear breakout.
...
Usually this kind of breakout happens due to tailwinds in some sector or due to the disruption in the sector.
For eg: last year due to covid-19, Pharma sector coโs created huge wealth for their investors.
For eg: last year due to covid-19, Pharma sector coโs created huge wealth for their investors.
Also look at the IT sector specifically those involved in data related business or AI or ML or any high tech apps, this sector is also getting hot, along with APIโs, chemicals and energy sector for next wave of disruption.
#AARTIDRUGS Concall was today at 3pm.
Here are highlights of the Conference Call๐
@unseenvalue @nid_rockz @Milind4profits
@sonalbhutra @SrishtiSharma_
๐งต๐
Here are highlights of the Conference Call๐
@unseenvalue @nid_rockz @Milind4profits
@sonalbhutra @SrishtiSharma_
๐งต๐
Opening Remarks:
- Revenue and exports grew more then 20%
- 55% of the growth was mainly due to volume in API
- API contributed 88% and formulations 12%
- Under API 56.17% revenue came from export
- Revenue and exports grew more then 20%
- 55% of the growth was mainly due to volume in API
- API contributed 88% and formulations 12%
- Under API 56.17% revenue came from export
- Company maintained efficiencies and costs
- D/E reduced due to strong internal accrual
- Good growth in formation exports
- Scaled up anti-inflammatory capacities
- Working on backward integration and API capex
- D/E reduced due to strong internal accrual
- Good growth in formation exports
- Scaled up anti-inflammatory capacities
- Working on backward integration and API capex
