Q3 concall
Wouldn’t be understatement to say one of the most humiliating performance and concall
- Gruesome parts( Generics, API, CMO) of biz are dragging Good performing part of biz( Radiopharma, CRDS)
- Further accentuated by lousy communications by mgmt - Q2 direction/guidance went out of window in Q3 performance
- Ususal risks of Pharma compliance already a hangover for mid term with Roorkee issue
- Nervousness on any guidance for suffering parts of biz
- CMO - This qtr no are not bottom as still has Covid share
- API - QoQ should improve, had Sartan inventory write off. Plant closure in Qtr( missing disclosures in time)
- Spec pharma- Radiopharma and Allegry holding fine and should stabilize QoQ, Pharamacy biz turn around wip - no concrete updates
- CRDS - growing well and Q3 Q4 base can be used for modeling
Learning - There is never a quick turnaround in generics Pharma, It gets worse before getting better. Best to keep a watch for signs of stability and build position size accordingly. Take mgmt words with pinch of salt esp in Generics. While valuations might look attractive relatively ( to recent past/peers) but performance might not have yet bottomed out. RJ Of the world have different risk appetite per allocation and ability to withstand opportunity cost, doesn’t make sense for retail folks.
Have tracking position - will move to watchlist now 