Pragnesh's portfolio

I had added
Anup enginnering,
Acrysil and
Ganesha eco in last 2 months

=Not sold any security

=My updated portfolio with avg buy price

1…Acrysil…(Rs 190.97)…(8.9%)
2…Astec life … ( rs 1017.39 )…(7.5%)
3…Lt food …( rs 45.18 )…(7.3%)
4…Kei ind…(rs 405.25 )…(7.2%)
5…Moldtek pack…( 259.20 )…(6.8%)
6…Ganesha eco(Rs 515)…(6.8%)
7…Paushak …(rs 2615)…(6.7%)
8…Apcotex …(Rs 191.62 ) …( 6.4%)
9…Grauer&weil …(Rs53.06 )…(6.4%)
10…Jenburkt ph…(.rs 620 )…(6.3%)

11…kpr mill……(rs745)…(5.0%)
12…Ion ex ……(rs652.14 ) ……(4.0%)
13…Anup eng(Rs 585)…(3.6%)

14…Ratnamani …(.rs 1298 ) …(2.8%)
15…Auro lab …(rs 68.72 ) …(2.5%)
16…Suven phar …(rs 251.64) …(.2.4%)
17…Ccl products …(rs 270) …(2.2.%)
18…Alkyl amine@ (1979 )@( 1.8%)

19…other stocks… …( 3%)
Ice make
bajaj finance
ambika cotton,
Minda industries
Jamna auto
Rajoo engineer
Emmbi ind
Century extrusion
Rain industries

=Portfolio is 48.37% up of invested amount
(Investment is done in staggered manner from sept 2017 to uptil today with buy and hold approach

1 Like

Added Beta drugs at avg Rs 250

Ratnamani metals

Moats(competitive advantages)


A…The largest manufacturer of Stainless Steel Seamless and
Welded Pipes & Tubes in India

B…The Country’s largest manufacturer of Nickel Alloy Pipes &
Tubes and Titanium Welded Tubes

C…One of the major manufacturers of Carbon Steel Welded
Pipes (ERW, L-SAW & H-SAW)

=Considering its leadership
position in the domestic stainless steel pipe segment, we believe Ratnamani is best suited to benefit
from the impending revival in the domestic capex cycle in oil refinery, petrochemicals, power and fertilizer sectors

2…High quality and premium products

=Ratnamani metals and tubes ltd. as a company always adhere to high quality and specialized products for niche market which helps to maintain market dominance and higher margins

=The Company
has able to make difference through delivering premium products, offering wide product portfolio and
becoming preferred supplier. A decade of expansion and diversification later, company is at a very important juncture of record high order book as well as international orders.

.But, what distinguishes us are robust R&D setups and testing cycles. Our battery of tests are rigorous enough to examine every aspect of the production cycle; they are sensitive enough to pick up the
smallest of variations from the norm.
We are so conscious of quality that we don’t commit to orders if we are not absolutely sure
we can deliver to the highest standards. Of course, business volumes are important, but they
cannot happen at the expense of quality. It is this uncompromising attitude to excellence
that has won us hearts and smiles over the years, across the country and overseas.

.4…Diversified and customised products

=It offers product portfolio
in diverse grades with lots of customisation.

…RMTL’s products portfolio
distinguishes itself from its peers both in stainless steel and carbon steel categories

=We have the reputation of being a one-stop shop; we can
deliver the most comprehensive range of products – be
it in size, or thickness or grade. Our production facilities
are also equipped to handle both small and large orders,
making us the most versatile producer around. An
ongoing L-SAW capacity replacement and addition
initiative will help us clinch larger orders in an expanding

5…Niche products

It is a matter of great pride that we are the preferred supplier
in high-end niches like nickel, titanium and exotic steel
alloy products. We are also making a name for ourselves
with our ability to turn out products that rival the quality
of costly imported items, only at cheaper rates. Our
ongoing Stainless Steel capacity augmentation will add
further depth to that capability, enabling us to create
newer market niches. We are also engaging in capacity
conversion to take advantage of emerging opportunities.
With some modifications, Stainless Steel capacities can
be converted to manufacture Titanium Tubes, the
market for which is on the ascendant now. Being import
substitutes, Titanium products are considered higher
end compared to standard Stainless Steel Tubes.

5…Hot excrusion press
…The company has also chalked out plans to set up a hot extrusion facility for large diameter (dia) seamless stainless steel pipes and matching cold finishing capacity
…The new facility will be funded through internal accruals. This facility will make Ratnamani Metals the only player in India with the capability to extrude mother hollow pipes of up to 8” in diameter against the company’s current capability of extruding tubes up to only 2” diameter.
… After commissioning the new facility, the company will be able to manufacture large dia pipes, which will ensure import substitution as well as further penetration of the export market,” ICICI Securities said

6… Location
connectivity from Kandla and Mundra ports gives our
company the advantage of logistics and low transportation costs to keep prices competitive

7 …Low cost production in india


1 Like



1…Technology and quality

=ACRYSIL claims to be the only quartz sink manufacturer in India and Asia and
among the four companies in the world having Schock technology for
manufacturing Quartz sinks (other three players are in Europe

=One needs decades of experience to reach the quality level which Acrysil manufactures.

=Quartz sinks are being manufactured by China and many countries in Eastern Europe with different
technology. ACRYSIL’s strength is because of Schock – a superior technology not readily available
from the market.

2…Low cost production
due to india base

3…Carysil Brand(domestic)
Carysil domestic brand
25% growth in domestic buisness due to caŕysil brand creation

1 Like



=The company has technical collaboration with Lummus Technology for special High Efficiency Heat Exchangers (Helixchanger).

The company has adopted a technology to fabricate and
supply Helical Baffle Heat Exchanger for global markets.

=The company has signed a technology partnership who are
the inventors and leaders in Embaffle Heat Exchangers
technology. This technology had made us the only fabricator
in India, with such capability.

B…Entry barrier

====Why big companies not enter

=The smaller average order size of ~Rs. 2.5 Cr discourages expansion of larger capital
goods companies into the process plant equipment market.

=====Why clients prefer anup than smaller companies

…Liscence n certificates
It takes small new companies 10 to 15 yrs for liscence as it is critical product
…Tailoring and complexity
All process equipment is specifically tailored as
per clients’ specifications requiring high levels of customization which prompts larger
clients to opt for established suppliers who meet the complexity and quality standards.

…Criticality of product.
Heat ex plays a critical role in
large scale industries like oil & gas refining, petrochemicals and fertilize
Clients prefer reliable
suppliers with a proven track record of quality and timely delivery thus benefiting larger players viz.
ISGEC, Godrej, L&T, BHEL, TEMA and Anup.

C=Low cost benefits due to cheaper manpower etc. in India

D=Sticking to deadlines and avoided paying liquidated damages - Gained confidence of customers leading to repeat buys - Liquidated damages are one of the biggest cost

E=Increasing complexity and weight of the product manufactured: Over the years, the company has increased realization of the equipment manufactured by it

F=Repeat business from existing clients because of trust being established(80%)




1…For HT and EHV cables,
=The manufacturing process
is technology and capital intensive, posing high entry barriers.

=In the category of 400kV EHV cables, we face
less competition currently as only few companies in the
world have established the capability to manufacture such
cables. Stringent requirements for meeting compliances
and securing product approvals in EHV cables further
make it difficult for new players to enter the market

2…Backward integration
=We have been able to backward integrate our services by setting up in-house manufacturing of PVC.

3…Forward integration
=Leveraging our in-house cable production, we have strategically forward integrated into the Engineering, Procurement and Construction (EPC) services for power and transmission projects.

=We continue to be selective in undertaking EPC projects, bidding only for those that have a significant cabling requirement as that gives us a strategic advantage in earning better margins through the in-house supply of inputs.

4…Strong prequalification credentials
=We supply our products to various
governmental agencies, based on a prequalification process and grant of approval by these governmental agencies.

=. KEI is a
pre-qualified supplier and has approvals from large number of corporates as well as public sector undertakings like Larsen
&Toubro Limited, Madhyanchal Vidyut Vitaran Nigam Limited, GE T&D India Limited and Gujarat Energy Transmission
Corporation Limited, among others

5…RETAIL SEGMENT since 2000
…growing network
2014…650 dealers


Ganesha eco


1…Economy of scale

=Leading market position among RPSF manufacturers

=– With an installed capacity of 108,600 metric tonne per annum
(MTPA), GEL continues to be the largest manufacturer of RPSF in the country.

= Supported by its large scale of operations,which results in economies of scale and augments bargaining power with suppliers, the company has demonstrated
healthy and steady profitability over the years.

=: Apart from us there are 35-36 more recyclers in the country having varied kind of capacities.

= Of course, we are the largest one and we are having the advantage because of our large production
base and large customer base.

= Our company is commanding 18% of the Indian market share of this recycled fiber. We are
making all kinds of fiber. So, if a customer has any requirement of any kind of fiber our company
can supply that. It is our Speciality.

2…Value added products

=Strong focus on R&D and development of
value added products – expend the current value-added product portfolio from the current 25% to 50% over next 2-3 years

=…incremental margin will come from the value-added products,

=Increasing the share in Non-woven and technical textile sector where prices are more stable and margins are better.

=Share of revenue
of value-added
products, 2014-15

=Share of revenue
of value-added
products, 2019-20

3…New products and .Strong r nd

=Presently, we are working on development of certain specialty fibres. It is like flame retardant
fibre, antibacterial fibres and biodegradable fibres. All these fibres are specialty fibres and are
being introduced for the first time in India in the recycled fibre segment. All these specialty fibre
products will fetch up around 35% to 40% extra margins.

= This flame-retardant fibre finds its
application in certain critical applications where the fire hazard is more and the

=antibacterial fibres it can kill 99.99% bacteria on the fabrics and the

=biodegradable fibre has been introduced
just now. It is fully capable to biodegrade under landfill and ocean in one year and the soil left
behind from the degradation will contain no plastics and it will remain perfectly fertile.

=We are also going to introduce a fibre which is another sort of the specialty fibres and it will be
having its application in cement and paper industries, so all these products are under different
stages of developments and the trial sampling has already been done.

=We have also executed certain orders in the European markets and in the Indian markets and the customers are
evaluating our products.

=Further, we have also sent all these samples in European labs for testing so that it can have
international acceptance and acquisition.

=Focusing on new product developments
more particularly -
 Anti –microbial Fibre with licensed
 Bio-degradable Fibre
 High tenacity Hollow conjugated
 Micro Fibre
 Dope dyed high tenacity Fibre

=Right now, all these specialty fibres are under introduction stage. We are at trial stage in the Fire
Retardant, antibacterial and in the biodegradable fibre, after having approval of the European
labs we will be further expanding all over the world and also in the Indian market. It will take
some time but certainly the initial outcome is very encouraging

4…South plant@improved margin

=Once we ramp up the new in South we would be getting some freight advantage and apart from this we are going for products which are value-added products, like filament yarn and recycled chips. So, there
the realizations and margins are much higher. So, the blended EBITDA margins of 25% we are
looking from the South facility.

5… …south plant.less competition…good demand

=It would be having
…44% capacity for the fibre and
… 27% for the filament yarn
…27% for the chip.
So, it is bifurcated into three segments.


…There is a large market for PSF and filament yarn. In PSF the recycled capacity is quite large,
and the market is expanding. So, the incremental demand is being met by the recycled fiber
which is around 40,000-50,000 tonnes per annum. And south market there is a big textile market.

.=Demand shift
So far, the textile market was dominated by cotton and virgin polyester. Now the market is
shifting from cotton to PC Yarn (polyester cotton yarn), blended yarn, they are shifting. So, the
demand is increasing for polyester also. The kind of capacity which we are putting up there is
not very big capacity. So, we don’t see any problem there. We are already having the customer

B…Filament yarn
=And as far as the filament yarn, there is not much recycling capacity in the country, only 1
or 2 players are there so far.

=And market is larger than the PSF market. And with the kind of
requirement of recycled stuff by the brands and the large manufacturers, the demand is muchmuch higher. So, we don’t see any problem in selling the filament yarn.

=In chips side also there
is a very high demand in developed countries like Europe and US. So, we are having some good
enquiries and we are also trying with few brands. So, the capacity is not very high in terms of the demand, so we don’t see any problem in selling the entire material and ramp up the capacity
in six months period. We are very optimistic to ramp up the capacity in six months period after
the plant is operational

=The chips plant which we are putting state of the art plant. We are already getting the US FDA
approval for this product. And quality would be at par with the virgin fiber, with the recycled
tag. So, there is 35%-40% premium for the recycled chips as against the PET chips.

=If a new player comes with new capacities so how easy or difficult is it
for them to on-board a new customer or let’s say replace us there?

=Actually, about selling the products of this South project we are already having serious inquiries
from several customers. Basically, it is from abroad. So, they are very-very seriously asking
when we can supply them chips and flakes and the filaments, etc. So, at present we don’t at all
anticipate about any problems in selling the products which will be manufactured in our south
plant. It will be sellable in India also.

6…Big basket of products

=We are making all kinds of fiber. So, if a customer has any requirement of any kind of fiber our company
can supply that. It is our Speciality.

…if our competitors give a slightly lower price so this business can go there, right?

= Actually, every customer has to understand his pricing also much so far little bit variation is there, then the customer will always buy from me, not from a competitor.

=We are having a big basket of products with us, we are having product for every application for the customers. So, customer benefits because we are having ready products for them, so they
prefer to buy from us,if there is not much price difference




1…(june 2021)

Recently The company has been awarded a contract under the Jal Jivan Mission for the rural drinking water supply to 1000 villages in two districts of Uttar Pradesh namely Varanasi and Aligarh
• The value of this project is approximately Rs 1000 Cr and details regarding it will be out post approval of the detailed report and the project should be constructed and commissioned within 21 months of signing of the contract

1…(2017)Goa plant for membranes started in 2017
=Integrated and automated reverse
osmosis membrane manufacturing
process at Verna, Goa.

2…(2019).new rnd centre at hyderabad

3…strong order book
(Oct 2020)The company has an approximate order book of INR 6,500 Mn excluding Sri
Lanka project. The Sri Lanka project outstanding USD 90 Mn.

4…Over 50 patents
Over 100 products launched

5…(High margin)Selective profitable orders

=We continue to remain conservative. We avoid the tendency to pick up
orders at lower margins and also prefer not to pick up orders just for the sake of filling the
books. In the long run, we do have to execute these orders and they may constraint our
capacity to invoice the more profitable orders. So we prefer to be selective about the orders
we want to pursue aggressively and profitability is an important criteria which we use for the

=Government orders are minuscule compared to industrial orders, so impact on WC is not that much (I’m sure the question was asked with VA Tech Wabag in mind).

6…Your company also continued to maintain its market
leadership in innovative and advanced Zero Liquid
Discharge (ZLD) projects.


=The Resin Division continued to contribute to the
company’s growth and profitability. Whilst the company
has established its position as a reliable and quality
supplier in geographies such as USA, Europe, it has
successfully exported its products to the SE Asian market through its established presence in these

=Integrating its innovation in ion exchange resin
technology and standard engineering, your company
launched a unique product INDION SWIFT 5Gx to meet
the growing requirements of high purity water systems
required by the pharmaceutical, power, semi-conductor
and electronic industries. Based on several unique
features of this product, the company received a large
number of orders for this product during the year under

The resin facility at Ankleshwar has also obtained renewed prestigious certificates

=It has secured breakthrough orders for membranes
manufactured in the newly constructed state-of-the-art
integrated Reverse Osmosis membrane manufacturing
facility in Goa.

…Your company has posted a turnover of INR 315 crores
driven by the chemicals business in addition to revenues
from ongoing engineering projects including Sri Lanka.
…It has secured breakthrough orders for membranes
manufactured in the newly constructed state-of-the-art
integrated Reverse Osmosis membrane manufacturing
facility in Goa.
…Your company consolidated business in geographies
like the North America, Middle East, SE Asia, South and
East Africa by increasing business presence in many
countries in these geographies.

11…The water and wastewater treatment market and company will continue to
grow on account of

…increase in demand due to rapid
…Water demand in the country is expected to grow at 21% CAGR over 2015-2020.

=A study by the Central Pollution Control Board (CPCB) has revealed that almost 62,000 MLD of sewage is generated across
urban India and there are just 816 STP installed that treat 23,277 MLD or 37.5% of sewage per day.

=Strict sewage disposal directives issued by
Central Pollution Control Board (CPCB) necessitate efficient

…Implementation of Zero Liquid Discharge
regulation by the government on industries, is expected to
stimulate the wastewater treatment market even further.
…In India only 60% of industrial waste water is treated.
…Around 40% of the STP’s do not conform to the environment protection standards. Compliance by state owned STP’s is low.
…The waste water treatment sector is expected to grow faster than the water treatment sector.
… Increased government regulations on waste water discharge to drive demand for water and waste water treatment chemicals.

of water for industrial and
domestic uses.

probable projects
INR 500 bn (USD 7.7 bn) has been allocated for investment in 500 towns and cities under AMRUT and another INR 480 bn
(USD 7.4 bn) has been put aside for upgrading 100 cities to attain ‘smart’ status.

=•“Namami Gange”,
…the clean Ganga initiative, can create significant opportunities.
… INR 200 bn (USD 3 bn) has been pledged by the government over the next five years to clean up the Ganga


=I had added
Beta drugs
Anup enginnering, from fresh capital.

=Sold some quantity of jenburkt pharma with loss and added beta drugs from that amount.

=My updated portfolio with avg buy price

1…Acrysil…(Rs 190.97)…(8.4%)
2…Astec life … ( rs 1017.39 )…(7.1%)
3…Lt food …( rs 45.18 )…(7.%)
4…Kei ind…(rs 405.25 )…(6.8%)
5…Moldtek pack…( 259.20 )…(6.4%)
6…Ganesha eco(Rs 515)…(6.4%)
7…Paushak …(rs 2615)…(6.3%)
8…Beta drugs(277.18)…(6.5%)
9…Apcotex …(Rs 191.62 ) …( 6%)
10…Grauer&weil …(Rs53.06 )…(6%)

12…Jenburkt ph…(.rs 620 )…(4.68%)
13…kpr mill……(rs745)…(4.6.0%)
14…Ion ex ……(rs652.14 ) ……(3.6%)

15…Ratnamani …(.rs 1298 ) …(2.5%)
16…Auro lab …(rs 68.72 ) …(2.2%)
17…Suven phar …(rs 251.64) …(.2.1%)
18…Ccl products …(rs 270) …(1.9.%)
19…Alkyl amine@ (791.56)( after split)@( 1.5%)

20…other stocks… …( 3%)
Ice make
bajaj finance
ambika cotton,
Minda industries
Jamna auto
Rajoo engineer
Emmbi ind
Rain industries

=Portfolio is 77 % up of invested amount

(Investment is done in staggered manner from sept 2017 to uptil today with buy and hold approach


Astec life


1…we want to increase our EBITDA
margins from 20% to 25%. We want to grow at the rate of 20%compounded.

2…New herbicide plant

=Now reaching close to
completion of the construction of the plants and we want to inaugurate the plant in the third week of February 2021 , so the full impact of the revenues will come in 2 years of the

=The herbicide plant is being used for contract manufacturing,

= ICRA notes the company’s planned efforts towards diversification with the ongoing capex towards setting up an herbicides manufacturing facility, which is expected to commence operations in FY2021.

3…new R n d setup

… Furthermore, it is making
investments for setting up a new R&D facility, which is expected to result in a significant boost to its R&D
capabilities and will facilitate its new product development plans.

=At the moment, we are not really doing early stage research. Our new R&D center, which is
going to be commissioned next year will be at a scale where we can start doing the contract
research part as well. Currently we are so busy with doing process development and bring
products online that we do not have the bandwith to do basic research.

=We come at a stage where there is either a product without a technology, we just have to do the process
development or there is a tech available and then we take it and take it forward

=. So those are the two models at the stage, the development of the molecule, we are not involved for the
moment, this is the plan for the future.

=Furthermore, the company’s investments in the new R&D lab are expected to
provide a significant boost to R&D capabilities, enabling it to develop new products and also benefit from the opportunities that the global demand shift from China may present for the Indian entities.

…we want to increase our EBITDA
margins from 20% to 25%. We want to grow at the rate of 20% compounded.

= So we need to develop the capability, which attacks the higher margin
products, so what are we doing in the new R&D facility

=, we are going to be developing
capabilities through
-fluorination as you know Navin Fluorine, SRF have a monopoly on
this, we are going to develop the capability for this.

  • Organometallic chemistry,
  • chiral chemistry,
  • high pressure chemistry,
  • flow chemistry, hydrogenation, some biochemistry
    these are just the short list the kind of things that we will be developing in the new lab,

4…Backward integration

=A new plant to manufacture the intermediates was commissioned during 2018-19 at mahad and is performing as per
expectations. This has led to improvement and stability in margins and less dependence on China.

=This is not only helping the Company in reducing its reliance on
China, but is also aiding in margin expansion.

= Astec’s operations are
supported by its backward-integrated operations, providing a steady supply of raw materials at cost effective rates, thus reducing the reliance on Chinese imports to some extent and aiding in profitability improvement.

=We import 70% of our total purchases, of that 75% comes from China.

=Yes, the good news is that we have commissioned one product, 50% of our purchases from
China of one particular product and we have commissioned that plant, we have the position
to make as much as we need, so depending on the price from China, we are the make or buy
from there, so that immediately brings our total purchases from China down from 50% of our total purchases to 25% if you chose to do that , so we do not have a specific number, but
as far as possible we want to minimize the dependence on China and that is ongoing

5…expansion of manufacturing capacity of certain
existing products

= Measures taken by the company for adding capacities
by way of new manufacturing plants as well as de-bottlenecking existing capacities through process improvements augur
well for the business amid growing demand in India due to supply disruptions in China and high utilisation of existing

6… china derisk strtegy

=Disruption in the supply of agrochemicals from China
places India at a sweet spot with international firms, as the latter are looking at partnering with Indian
manufacturers for contract manufacturing business.

=This provides a long-term revenue visibility to the Indian agrochemical companies.

=As global companies look for alternate manufacturing locations outside China, the opportunity available to Indian manufacturers including your Company
will be huge. Organizations with deep technical capabilities of technical or intermediate chemistries are likely to gain from this shift / diversification of the manufacturing base.

7…The Company has
made substantial investment to bring Environment,
Health, Safety (EHS) standard to international levels. The
Company is therefore optimistic of making substantial
strides in developing this business segment and
developing new products.

8…new molecule
=next financial year about 2 to 3 molecules
and every year we want to launch at least 2 molecules.


Adding Stylam industries

=I had added
…Anup engineering and
… Stylam industries in last 2 months

=My updated portfolio with avg buy price

1…Acrysil…(Rs 190.97)…(7.8%)
2…Astec life … ( rs 1017.39 )…(6.6%)
3…Lt food …( rs 45.18 )…(6.5.%)
4…Kei ind…(rs 405.25 )…(6.3%)
5…Moldtek pack…( 259.20 )…(5.9%)
6…Ganesha eco(Rs 515)…(5.9%)
7…Beta drugs(277.18)…(6.0%)
8…Paushak …(rs 2615)…(5.8%)
9…Apcotex …(Rs 191.62 ) …( 5.5%)
10…Grauer&weil …(Rs53.06 )…(5.5%)

13…Jenburkt ph…(.rs 620 )…(4.31%)
14…kpr mill……(rs745)…(4.3%)
15…Ion ex ……(rs652.14 ) ……(3.5%)

16…Ratnamani …(.rs 1298 ) …(2.35%)
17…Auro lab …(rs 68.72 ) …(2.0%)
18…Suven phar …(rs 251.64) …(1.9%)
19…Ccl products …(rs 270) …(1.9%)
20…Alkyl amine@ (791.56)( after split)@( 1.4%)

21…other stocks… …( 3%)
Ice make
bajaj finance
ambika cotton,
Minda industries
Jamna auto
Rajoo engineer
Emmbi ind
Rain industries

=Portfolio is 87 % up of invested amount

(Investment is done in staggered manner from sept 2017 to uptil today with buy and hold approach



Pragnesh, could you also give some insights or research analysis on Beta Drugs which is on SME board but seems promising, congrats for your performance


Following points are summerized from concall and telephonic talk with management and medical representatives

Primarily focused on new molecule

2…CRAM @50%
3A…injectables@55%@direct hospil

1…25% of the products are manufactured under own brand (Adley)

2…75% under other entities’ brand names;


=We are one of the very few backwardly integrated companies


A=we have only onco products
=Very few(probably only) company in india is totally focused on onco
=onco.products are less in quantity and more costly
=Shilpa n natco have antiviral,cephalosporin lines also

B=They have main business in usa also,so they require huge asset

=So our Roe is better

=New products
We just tell this is our basic price.

=What attracts them is that we are continuously developing new molecules, which attracts them

=Hospital network
=Doctors prescription

=Earlier I(Mr ashutosh) have worked for Torrent, I have worked for DRL, I have also worked Ford. So,
we were the only company who started their business right from scratch.

=So, we know the nitty-gritties of the market and how we can capture those hospitals. However, the strategy for
different-different hospitals is different. So, our market intelligence is good.

=The team which we have recruited in last couple of years those are all experienced people, and they are having
very good association with the chief pharmacist of those hospitals. We have a target list of
hospitals. We have the market intelligence, what exactly is happening in those set of hospitals,
and then we are targeting it accordingly.

=Before last year, we hardly had any presence like
around 40 to 50% of the corporate hospitals.

=But with our efforts last year, we have made our
presence in almost all the corporate hospitals.

=Some states we are doing
pretty well, like we are in top 1 to 10 and some states we are picking up very nicely

=We have certain brands which have
become number one position in India

5…R N D

= We are totally a research and development-based company.

= We focus ourselves towards
developing new molecules to be the first one to come up with the molecules which are
becoming off-patent both in API and formulations.

= So, we are not based on the raw material being procured from outside parties. The strategy is very simple and clear.

=If the molecule is
getting off-patent, the API needs to be developed first, the batches need to be taken for
formulations first and then when they are becoming off-patent, it should be launched as the
first one to be launched to Indian market

=Our R&D is the main key success towards our growth.

=15-20 yrs ecperienced r n d team
=gradually in coming forward years, it will be around 2% to 3% we will be
spending on the R&D front, right

6…Why big companies will not enter on only onco plant

1=Big companies make other products also as onco products are very less quantity.

So if big companies make other products in same plant,they have less ROE

For them,it is better to outsource onco products from other companies.

2…Mostly big companies have huge usa business.
=So they require more expense on plant for usfda maintenence


1…API plant started in 2017

2…Set up Oncology Plant in UZbekistan

3…incresing network of branded business

4…Our major focus towards TKIs and our own API expansion

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Invest X amount for 20 yrs

Suppose your return is 15% cagr

U will double in 5 yrs


1…It takes 15 years for X amount to compound at Rs 8X

2…But it takes only 5 yrs for 8X amount to become 16X
(from 15th to 20th yr)

So ,in last 5 yrs you get return that u achieved in first 15 yrs





Adding RACL geartech

@Pragnesh Our stock selection matches to a degree :). One common stock we have got it LT foods. I have it for past 1.5 yrs. Bought it around Rs. 50-55 when there was a good margin of safety. I like this business because of being a part of essentials for human being, brand, they are launching good products, They are in European market where there is scope for better margins, Above all impressive cash flow in past FY20 and FY21, Stock trading at about 5 times the annual cash flow for last year etc.

There are concerns around muted sales growth and very low 4-6% Net profit margin. These aspects are making me consider the trimming of the position.

It would be very interesting to understand your views, investment rationale and stock being terrible under-performer…


For L .T .foods

1…Muted sales growth was due to corona impact on HORECA segment

2…Its net margin is low but operating margin is stable at around 10% since last 10 yrs (fluctuating operating margin indicates commodity business)

Even D mart has low margin

I think stable or increasing operating margin with sales growth is more important than absolute % of net margin

3…ROE = NPM×Asset turnover

Company can also increase its ROE by increasing turnover even with low net profit margin.So i m keeping eye on its sales growth and how company utilises its asset for next few yrs( i dont consider quarterly results very useful)

LT foods stock has not much appreciated in last few yrs as compared to my other holdings


Company has shown

1…Superb profit growth in last 5 yrs
2…Decreasing D/E ratiio
3…Stable margin
4…Increasing branded business
5…Adding new products, new market

I normally keep underperforming stock for minimum 5 yrs before taking decision

Disc…invested since 2018 with avg price of Rs 46 and seen many ups n downs.


Hello Pragnesh,

Could you please share your thoughts behind adding Raclgear to your portfolio ?

Lt foods need to hold rice for long time as they sell rice that is 1 year old or 2 year old. If they hold rice for minimum 1 year with 10% profit margin then this business is not a good business but a bad allocation of capital.

They have good brands of rice but long inventory hold and low opm are bad for business. According to screener they inventory days of 700 days.

For example, if i sell one candy per day of Rs 1 with 50 paise per margin that is 50% margin. If i sell one candy for 700 days i estned profit of Rs 350. Where as Dawat on Rs 400 bag will earn Rs 40 only.

Disc: this is general observation and not a recommendation. I am not an expert. No holdings.

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