Where is Hikal heading in the next 5 years?

Explained judiciously by Mr. Sameer Hiremath in the Q4FY20 Concall.

Note: It will not be a smooth journey.

Pharma learnings 101:

Higher the difficulty to manufacture, Lower the competition, Higher the pricing power.

Higher the regulatory oversight, the Bigger is the moat for those who comply.

#PharmawithJST

The Business Model of Indian Hospitals Simplified.

“We are blessed to be living in a country where the cost of healthcare is the lowest in the world.” ~Dr. Devi Shetty, Narayana Health

A thread 🧵👇

1/ In the Indian healthcare delivery market; the pharmaceuticals market is 20% of the pie. While Hospitals market is 3x that of theirs.

Big opportunity size, however, is it investment-worthy? Let's see.

2/ Before we get into the details:

Do brush up on the different abbreviations associated with the Hospitals & the Pharmaceuticals industry in General, for example ALOS, ARPOB, NABH, etc.

Inpatient (IPD): Need to get hospitalized
Outpatient (OPD): No need to get hospitalized

3/ The hospitals are of basically 3 types:

Primary: For OPD only (no beds), sends to below hospitals for further treatment

Secondary: IPD & OPD in medium-sized general hospitals

Tertiary: Can treat all complex ailments & huge in size, Major listed companies are focused here.

4/ Hospitals can also be classified based on Ownership & management:

Here, the listed companies either are in private or manage hospitals owned by others (Asset light business, due to the very high land prices in metro cities)

Glenmark Life Sciences (GLS) IPO notes 🔬

Plans to take the capacity to 1762KL (currently 762KL) in the next 4 years.

Hit the 'retweet' & help us educate more investors

A thread 🧵👇

#IPOwithJST

1/ About the company

Developer & manufacturer of high value, non- commoditized APIs (complex & low competition) in chronic therapeutic areas: CVS, CNS, pain management & diabetes, etc

Basic details about the IPO 👇

Note: After paying off liabilities, 150crs remain for capex.

2/ The Journey

Established the API business in FY02

Since 2015, Have not received any adverse reactions from regulators (USFDA, PMDA) in the total 38 audits & inspections & Have gone through 432 customer audits.

Filled 403 DMFs & CEP registration across markets globally.

3/ Trends that the company is betting on & what works for them

China+1: India API market growth (10% cagr projected from FY21-26) will outpace the industry: Driven by specialty API+ Strong domestic market

Highest no. of USFDA approved API facilities & % of DMFs filled

4/ Interesting facts

- 120 molecules: $142B market size
- Targetting 8 to 10 new molecules every yr (Key differentiator over time)
- 66% of sales from regulated markets
- Works with 16 of the top 20 generic cos.
- Top 7 customers: 5 to 15yrs old

Krsnna Diagnostics IPO notes: 'Let's do Good' ❓

Hit the 'retweet' & help us educate more investors

A thread 🧵👇

#IPOwithJST

1/ Basics about the IPO

Issue Dates: 4 - 6 August
Issue Size: ₹ 1,211 Crore (400crs Fresh Issue & 811crs OFS)
Mcap at the upper band: 2994crs
Price Band: ₹ 933 - 954
Retail Quota: 10%

Promoter stake to go from 32% to 27% post IPO.

2/ About the company.

Krsnaa Diagnostics provides technology-enabled services such as imaging (including radiology), pathology/clinical laboratory, and teleradiology

to public and private hospitals, medical colleges and community health centres across India.

3/ They focus on the public-private partnership (“PPP”) diagnostics segment and have the largest presence in the diagnostic PPP segment.

Contracts are typical of long-term in nature.

Won 77.6% of all tenders since inception & have thus deployed 1823 diagnostic centers.

4/ Operational performance indicators

What if I told you to submit your PhD report by the 1st year of your BTech in engineering.

That’s what people do when they try to find multi-baggers in their 1st business cycle.

#hikal Undergoing a Volatility Contraction which can be appreciated in #Renko chart
#PnF next DTB gives a very favorable R:R entry
@Definedge
#NSE #StocksToBuy #StockMarket #stockstowatch #Nifty #trading

#HIKAL
Bullish continuation
keep SL 575 on closing basis for 1169/1241
#AhmedabadNest #RelativeStrength #Outperformance #invest #India

HIKAL Annual Report is a must read for everyone tracking the CDMO/API/Intermediates industry.

HIKAL being a hybrid player, their Annual Report insights on Pharma, Animal Health and Crop