Authors Sahil Sharma

7 days 30 days All time Recent Popular
#neulandlab πŸŒ‹πŸŒ‹ read on to understand this company and its story of transformation. On twitter, πŸŒ‹ has become synonymous with neuland, and this is how i will use it throughout the thread. If you like the thread, plz retweet & help fellow investors learn

Starting with a simple primer on the Pharma industry. They make medicines for all of us. The part of the medicine which gives it its potency against the ailment it cures is called API: Active Pharmaceutical

(here is a reference few people will get, but have to make it since I love it :D):
If Guardians of the globe ( were a medicine, Omniman ( is the API.

Back to πŸŒ‹. There are pharma companies which sell APIs as well as the finished medicine (FDF: Finished Dosage Formulation). Neuland are pureplay API manufacturers. This provides them some advantage since they don't compete with their clients (the FDF makers).

Medicine is diverse. There are medicine which were first discovered in 1920s (, to those being created now ( Naturally then, some of this involves very complex chemistry to manufacture, others are relatively easier to manufacture.
A lot of people ask: how do you find companies to invest in? very good question.

How did you find RACL, Pix?

Creating this ad-hoc thread to share my process.

if you like it, please RT to benefit maximum investors. πŸ™

Imagine what you want in a company, codify it in the form of filters, create a screen. Example below:

"Market Capitalization > 50

Market Capitalization < 3000

((Average return on capital employed 5Years > 25 AND
Price to Earning < 20) OR
(Average return on capital employed 5Years > 15 AND
Price to Earning < 10))
Sales growth 5Years > 10

Operating cash flow 5years /5 < Operating cash flow 3years /3
Operating cash flow 7years /7 < Operating cash flow 3years /3"

In this screener, i am looking for
smallcaps with a min mcap,
which have a bare minimum average ROCE & valuation accordance to the unit economics
which are also growing topline
and where operating cash flows are also increasing, on an average basis
Given the immense interest in this #investment #process thread about how to get investment ideas, thought of creating a logical follow-up 🧡

Given that I have an idea & some sense for valuation & growth, how do i construct a portfolio?

If you like the thread, plz RT.

First thing worth mentioning is that I am only describing my own process. Others can follow a different process which could work for them.

Opposite of a good idea can also be a good idea

Before understanding the process itself, it is important to understand the problems the process is being designed to solve for. What are the key hurdles or troubles I have faced in designing my PF.

1. At any given point in time (in the past) i have only known deeply about 5% of the listed universe in India, or lower. When I say know deeply I mean read an annual report, an investor presentation, a concall, understood why the business is how it is.

2. I only started my corporate life 4 years ago, so my pf size is small compared to yearly savings. This means that I need to deploy large incremental capital every year at least for next few years. This cant be a buy & track pf, this is a keep buying & tracking for a few yrs pf
This thread is to create awareness on how to use

Please note that i am not officially associated with website. Only an active contributor & hope to benefit from network effects of interested investors actively contributing on platform. is above all else a community of like minded investors who wants to actively engage in understandin at a fundamental level & separate wheat from the chaff.

Develop an understanding of the biz, industry, competitive intensity, management, valuation

Website was created > 10 years ago. Early users are seasoned investors & i personally look to learn greatly by following their footprints across the website.

There are broadly speaking 4-5 types of "threads" or discussion places across the website.

1. Featured discussions (hall of fame, showcase discussions, learning).

These enable investor to level up the most. These discussions are a showcase for the website itself.
These are also a great starting point. Since VP is not a course, feel free to traverse them in any order
what better way to start sunday than a #kilpest thread: a classic peter lynch pick & shovel investment for the diagnostics sector. If you like the thread, please retweet this tweet to help educate max investors. πŸ™πŸ™

Before I dive into Kilpest, some words on microcap investing. Everyone **needs** to be aware of what they are signing up for.

Two interviews from @varinder_bansal sir’s Omkara capital with very successful microcap investors (one with @iancassel sir: ...

@iancassel & one with @hiddengemsindia sir: do a wonderful job explaining all the landmines & things to keep in mind. Do watch these, please before you buy any #microcap

@iancassel @hiddengemsindia My own take is that one has to create a diversified PF of uncorrelated microcaps (if you'd typically invest in 5, make it 10 and so forth). Understand that liquidity risks will always remain.