Change in dynamics in last 5 quarters has enabled them to aim big in next 5 years.
A thread of Concall excerpt discussing how seeds are sown for a strong future.
Carlyle Acquiring stake gives them a strong backbone which enables them to think about entering US or China market and lot of other optionality.
Filed First injectable (Tulathromycin) for US market.
Initiated CDMO business (optionality)
Multi-year agreement with Zoetis to market & distribute their ruminant portfolio in India. Being Partner of Zoetis provides gloabl image & helps to acquire their CDMO customer in future.
CDMO is very niche initiative targeting only veterinary API customers.
Acquired 40% of Provet (Turkey Subsidiary, extremely profitable business) making it a wholly owned subsidiary which will improve their bottomline.
Hired Stonehaven as consultant to become top 10 animal healthcare company, dreaming big.
CDMO model initiated with one of the largest AH player, 2 products under execution.
Having multiple facilities accredited with certifications from the best authorities from globe is a hidden moat in itself... 10-20% pop and then retracement should not shake confidence... Business focus and longevity should build conviction— Harinder S Nanda (@harindersnanda) July 14, 2021
Market is short sighted and loves to buy high and sell low
Sequent is a long gestation stock, it won't deliver it's real earnings until FY23-25
Not suitable investment for those who want 100% return/yr
Net profit before tax and exceptional items (True Cash earned by the company) increase by ~55% YoY
ROCE now above 20% and PAT increase by 36.5% are signs of Operating Leverage
Before Op Leverage kicked in for Laurus, its ROCE was in ~14%
The Advisor onboarded created the animal healthcare business for Boehringer Ingelheim (~2nd largest animal healthcare business in the world with net sales of ~4.5 Billion+ and presence in over 150 countries
Look for qualitative insights in a business, quantitative insights are just ~10% of the work