True. That is a concern that even I have and actually I am more keen on their products business.
Argument against your view is that it takes years for a doctor to establish a brand whereas here even a new doctor becomes part of the process and therefore direct supervision may not be such a big issue if their services are standardized.
In terms of revenues - I think major part is led by bridal business and hair removal - not sure if the latter is catered by doctors at their clinics? Pl correct me if I am mistaken.
I think the valuation is also partly driven by high operating leverage and the potential of the Products business becoming sizable - they have allocated much more capital to Kaya Skin Bars of late.
The company will evolve from Skin Clinics > Skin Bars > Retail distribution of their products and the potential for that is definitely huge
Hair removal is the main cosmetology procedure in most dermatologists having lasers. So I felt that Marico Kaya may not make much headway there.
Regarding products business there are a lot of companies like VLCC and such similar companies besides MNCs like Vichy etc promoting their products. Plus pharma companies have hugely increased their focus on cosmeceuticals.
Hitesh, I guess considering expertise of Marico in creating consumer facing beauty care brands, Kaya product brands may be targeted as a high end consumer beauty product going forward whose needs cannot be fulfilled through Marico existing brand protofolio. So positioning of these products may be different than typical pharma companies products. Also Middle east market for skin care is highly regulated and customer in those regions has capabilities to pay high (avg customer spending about Rs 23000) and with 19 clinics generate revenue of close to 45% with net profit margin in range of 10-15 % while india operation with 100 clinics have same amount of revenue (about 55 %) with net profit margin of less than 6-7 %. I think market is currently willing to give high valuation may be due to great future high end consumer product potential and potential in middle east market for such clinics.
@Advait_6270. I request you to read the thread before asking such questions. Hitesh has said earlier that he is not comfortable disclosing his portfolio. I have found hitesh to be extremely helpful in answering business related queries. Please donât expect things to be served on a platter.
Years ago before the demerger, someone gave me a coupon to get some treatment done for my face. Since it was free I gave it a try. They applied a lot of gooey stuff from bottles followed by some white cream that burnt like hell. I think it was bleach. They even gave me a couple of bottles to take home. There were black patches on my cheeks that luckily disappeared after a few days. Never returned after that. But I couldnât help noticing that the dermatologists employed there were seriously young.
As far as I understand, bleach can cause side effects even when applied by an experienced/skilled healthcare professional.
Also I can notice your belief that a young doctor means less skills. I must take offense to that being a relatively young dentist myself. With due respect to senior doctors, I, along with lot of young dentists claim to do better Root Canal Treatment(most common dental treatment which needs high level of skills) than most of the senior dentists.
So, basically I wouldnât agree with you that young means less skilled although experience means a great deal. Although general consensus is probably similar to your opinion.
nice to know that you are an old equitydesk member like me. i am new to this site and was reading the site for few days. You have lot of fan followings. Thats fantastic. i will seek your advise in future time to time in various stocks. Hope its ok with you.
I often mention in some threads where I put in my views about my holdings in that particular co. About putting up the PF lets say that I dont want people to commit the same mistakes I commit.
I have been discussing about companies in which I am interested/invested freely in this and other threads and that will continue.
catchsudipto, great to see you here on this forum. Hope it helps you in your investment journey.
Are you still following/invested in J B Chemicals? Tried to bring out some factors after the quarterly results in the resp. thread. Would be great if you can add to that!
I exited JB a long time back. But have been following the company and the thesis of govt allowing raising prices on DPCO products in line with inflation is playing out well in the company.
Its not a fast grower but keeps churning out encouraging results.
But I feel in pharma sector there are some other stocks where the actual action is and hence jB is a sort of less followed company.
[quote=âhitesh2710, post:1696, topic:658â]
But I feel in pharma sector there are some other stocks where the actual action is and hence jB is a sort of less followed company
Hitesh nice to see that you are following pharma sector closely . As i am a novice & underweight in pharma will it be possible to list out your preferences so that i can have a feel which companies experts are following.
can we have a look at coral labsâŚthe financials look decent, promoter holding around 70%.
The company pays dividend.
No fii holding yet.
Company has plant at baroda & corp office at mumbai.
Would be glad to know your feedback on the same
I had a look at coral labs earlier but did not get excited by the companyâs business. most of the products seem run of the mill. Since pharma is the sector in flavour, a lot of stocks will run up irrespective of merits but I want to stick with companies where I can clearly understand why I am investing in them.
Sudipto,
We have well populated threads on various pharma companies beginning with ajanta, torrent, suven, fdc, shilpa medicare just to name a few. And anant shenoyâs presentation on pharma could also help one in getting a better grip on the sector.
Sir I was going through aarti drug promoter are very strong performance also matching with top performing pharma organisation. Ur views on Aarti drug pl.regards Mukesh ahmedabad
