https://www.bseindia.com/stockinfo/AnnPdfOpen.aspx?Pname=7667f5dd-875c-4e1e-89fe-bf20d50a330f.pdf
Result for Q2FY25.
1 Like
The company has demonstrated solid growth, supported by transparent responses to investor inquiries, underscoring the management’s integrity and commitment.
Management has clarified that the recent surge in growth is primarily due to seasonal disease factors. It’s reasonable to consider a sustained growth rate of 25-30%, which remains highly impressive…
Full marks for management integrity for disclosures…
11 Likes
Excellent initiative by company to answer all questions in the Q2FY25 PPT
https://www.bseindia.com/xml-data/corpfiling/AttachLive/6fa9eb9e-335b-4818-8cfe-893e3a0c2c9c.pdf
5 Likes
Tru PCR Europe isn’t a 100% subs ?. As per annual report shared by a member - directors of Tru PCR are H Singh, NK Dubey, D Dubey
2 Likes
3B acquired 70% of their UK distributor HS Biolabs in Nov 2021. 3B paid ~10 cr for 70% of HS Biolabs, 30% is still with the original owner Harry Singh who continues to work for them. Of the 10 cr paid, 1.5 cr was paid out for secondary purchase of shares while the majority 8.5 cr was directly infused into the company, rebranding it as TruPCR Europe.
This UK business is now doing a run rate of 16 cr revenue annually, growing 50% YoY.
11 Likes
Here is the next youtube video from the above series clarifying the point raised .
1 Like
Came across this transcript of the AGM featuring Q&A with the promoter which wasn’t posted to the exchanges. Sharing some interesting nuggets from the discussion. Many thanks to the investors who participated in the AGM and asked questions!
Acquisitions
• Company is actively exploring acquisitions in the molecular/IVD diagnostics space, focusing on:
• Manufacturers with established product portfolios.
• Distributors to expand market access.
• Primarily targeting Europe and the U.S., given the mature molecular diagnostics markets in these regions. Reiterated priority is the U.S. a couple of times.
• Open to acquiring U.S.-based entities with FDA-approved products or U.S. distributors having annual sales of $2–5 million to scale 3BB distribution in the US.
• Many opportunities evaluated so far but not found anything within the budget or with growth visibility similar to their UK acquisition.
U.S. Strategy
• Exports to the U.S. are currently conducted under “Research Use Only” (RUO) due to the high cost of U.S. FDA approvals.
• Products are marketed through distributors with regulatory flexibility in the RUO space.
• Holds CE-IVD certification for European markets and Indian IVD certification for domestic markets, not looking at getting FDA certification for 3BB directly as it doesn’t make financial sense currently.
India Market Size
• Open system molecular diagnostic kits in India are valued at approximately ₹400–500 crore.
• 3B BlackBio holds around 10% of the market.
Guidance
• 20–25% growth forecasted for the next two years (FY 2024-25 and FY 2025-26).
• Exports expected to grow at a higher rate than domestic sales.
• Confident that current 50-60% EBITDA margin is durable and sustainable.
Investor Calls
• Management is considering initiating regular investor calls starting next quarter or in 2025.
19 Likes
Current valuation of 3bbb :
PE-40
Price/Sales - 20
For a high growth, high margin company this seems to be fairly valued.
My question is, can this valuation sustain or go beyond given that there are not many triggers left (not counting aquisition now as I still think it will take a lot of time to materialize)
Disc : Have this stock for more than 2 years
2 Likes
It is still trading far below industry PE and rerating may continue until company keeps posting high growth numbers untill it reaches industry PE atleast…
2 Likes
What is the industry PE?
Disclosure: Invested from lower levels.
1 Like
On second thoughts, I too concur it is fairly valued now given that the bottom-line has substantial contribution from other income which is interest on savings.
On triggers, I slightly differ. The company is targeting expansion across multiple geographies concurrently, namely, India, UK, Europe, Mideast and even SE Asia. This means growth will continue with great vigor. Another possible trigger is an extraordinary acquisition.
But, no trigger big enough that can yield multi-bagger returns from this point onwards, unless the industry itself gets re-rated.
6 Likes
Been tracking this stock since a quarter.It was languishing for a year but suddenly caught the fancy of smallcap hunters (only BSE listed) and I guess its due to the numbers where 3B Blackbio DX consolidated net profit rose 86.62% in the September 2024.
1 Like
This sector itself is growing at more than 20 cagr rate as I read in reports a year ago so one can imagine how much a small company can grow if it succeeded. One can share any recent report in this sector if available, for better clarity on possibility of growth.
1 Like
1 Like
Few points :
I think PE = 40 is not the only comparison matrics, we also need to check price/sales =20 which is one of the highest in the industry.
Regarding expansion, they are projecting the 20-25% CAGR of the next 2 years also counting in the sales from different geographies.
I still think there is not much triggers left, we need to see how they make use of the cash lying around.
1 Like
My thoughts on valuation & growth
-
MolBio raised at ~26x topline – so that could be one valuation benchmark
-
Comparison with Dr Lal type of companies is unfair comparison in my view – using any Industry PE benchmark is prone to error
-
Can it be a multibagger from here? Depends on what is a multibagger for you. In my view: a 100x from here is ‘No’; a 10x from here is a ‘Maybe’; a 2 to 3x from here has a ‘high probability’ (good management; sectoral tailwinds; not unreasonably valued currently)
-
Future growth triggers: (1) AMR – they already have approvals for it (2) growth in exports & international business (3) inorganic growth through a sensible acquisition
-
In my view: 3B can handle competitive intensity, sustain high margins and have a healthy growth in the next 4-5 years. However, what can undo the whole thing is a ‘Nokia moment’ – a disruptive innovation that can decimate their business overnight, like (a) lab on a chip (b) CRISPR based diagnostics (c) Galleri test etc.
Disc.: invested for the last ~3 of years and tracking closely
16 Likes
Demand notice recieved from income tax of 4.4cr rupees
4537de9e-4c26-44d1-b2b0-1ac63b898e5b.pdf (1.0 MB)
Can anyone decode what’s the issue?
Management says there will be no material impact.
Yes. It seems it’s technical in nature. As, I could understand, Old company would have paid advance tax on its PAN number. Now, the old company is amalgated into new company which will have a new PAN number.
The advance tax paid will have to be transferred to new PAN number .
5 Likes