#Suven – Journey of my first 50 bagger…

I bought #Suven first in Apr 2013 around Rs 20…today after almost 7.5 years, its Rs 1000 (Suven pharma 920 adjusted for bonus + Suven Life 80)..CAGR of almost 68% for 7.5 years. I am fortunate to hold it throughout the journey and

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add on multiple occasions on way up. Like to share my experience in this thread for everyone’s benefit..

First time I bought because I like the management focus on R&D. It had chosen the most difficult therapeutic area in pharma which is CNS and it was investing the cash

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flow it used to earn from CRAMS. It also used to write off all the R&D expenses in the P&L instead of capitalizing it in BS. That gave me lot of comfort about management quality.

I kept on adding as funds keep coming. I remember giving a public presentation on Suven in

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Mumbai at one analyst meet in Nov 2017 when it was trading at Rs 160. There was a huge call option embedded at that time in the form of SUVN-502. That would have been the blockbuster molecule if succeeded with market potential of $10 Bn plus..result was due in Dec 2019,

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I loaded around 250-300 knowing the value of CRAMS business itself is more than 300.

SUVN-502 failed in phase-II trials, stock was down 15% from 300 to 250 in a single day, I added heavily. it was largest allocation in my portfolio because I knew the value of CRAMS business

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Staying invested for long time compounds wealth as well as your business understanding. Higher allocation comes with higher conviction and higher conviction comes with higher degree of research…

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#Suven got demerged. #Suvenlife was trading around Rs 20-30. I added further because it was having cash equal to Rs 25 per share. Later #Suvenpharma listed around 300, went down to 160 due to Corona meltdown…it was time to add more since one of the finest CRAMS business

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with highest margins and highest return ratios was available at 7x P/E…

Don’t get anchored to your initial buying price. if the hypothesis is intact, ride it with conviction..add more

Today, combined value is Rs 1000 (Life + Pharma adj for bonus)…still 4x in a year

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Suvenpharma is at its inflexion point..FY22 and further growth trajectory would be very different..Its doing capex of 920 crs which is more that its FY20 sales of which 320 crs getting commissioned by Mar 21…

How many companies does capex equal to their annual sales !!

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and that too when the RoCE and operating margins are 40% plus…

Multibaggers can be achieved with Vision, patience and hard work…

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Humans inherently like the act of solidarity. We are social beings. We like to huddle up and be together.
They used this against us.
They convinced us that it was an act of solidarity to flatten the curve, to wear a mask for others, to take the vaccines for others,


and to reach #covidzero for others. They convinced us that this was for the greater good of society.
In reality, this couldn't be further away from the truth. They have divided us and broken the core structure of our society. They have dehumanized us with their masks.

They set us against each other into clans on opposite sides of a spectrum. They have turned us into aggressive beings fighting for our survival. Some of us fear harm from the virus, others fear harm from the vaccine, and yet others fear harm from the attack on our civilization.

We are all on a flight or fight mode. We are all operating under the influence of fear. We must collect ourselves and reflect on what has happened over the last year.
How is this for the greater good of society?

They used a tactical warfare strategy against us.
'Divide and conquer'.
We fell for it.
Now we must become aware of it and fight back.
We must reunite. We must find true solidarity to save our world. To free ourselves. To regain our autonomy.

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