Notes from recent meet with the management of United Spirits: (Source MOFSL) 🧵

Market cap: 61,300 crores
Revenues: 8821 crores
P/E: 88.4
P/S: 6.82
P/B: 14.2
ROE: 9.49%
ROCE: 13.3%

@dmuthuk

1/n

Deepak Nitrite Client Base,
(Source 50th Annual Report 2020-2021)

Thread on Astec Lifesciences Ltd 🧵

Market cap: 1996.7 crores.
Revenues: 522.61 crores.
P/E: 27.62
P/B: 7.0
ROCE: 20.44%
ROE: 21.24%

Here we go👇

ASTEL is a niche chemical company focused on triazole fungicides & on proprietary off-patent products in the CRAMS segment;

1/25

New products in the herbicides segment should drive growth in the CRAMS space.

Leader in triazole fungicides:

Tebuconazole and Propiconazole currently form a major part of ASTEL’s enterprise business while it is capable of venturing into newer products given strong

2/25

technical knowledge in triazole chemistry.

Newer mixtures/geographies to drive growth in Enterprise business:

Triazole fungicides have been losing market share over the years as new products (SDHI fungicides) have proved to be a replacement;

3/25

However, with a few SDHI (succinate dehydrogenase inhibitors) products facing resistance in some geographies and given strong forecasts for this segment, triazole fungicides are likely to benefit–albeit in a limited way–from their inclusion in a

4/25

mixture of products (with some SDHIs).

ASTEL is setting up a new herbicide plant To diversify its product concentration from the triazole fungicide segment.

New R&D Centre to aid diversification:

Would help develop new processes into various chemistries like fluorine;

5/25

As part of our comparative analysis series, this month we covered two Engineering R&D companies.

Link to our presentation on, Tata Elxsi versus LTTS.

https://t.co/nsRLGpbt6L

Presentation only for educational purpose and should not be seen as an investment recommendation.

Thread on IDFC first Bank 🧵

Market cap: 37,087 crores
Revenues: 15,968 crores
P/E: 82
P/B: 2.42
ROE: 2.95%

Here we go 👇

1/25

Unique evolution,

On getting a license, it was created out of a demerger of infrastructure financing business followed by the merger of erstwhile Capital First;

Stress build-up and franchise investment resulted in a weak Return profile during the transition phase;

2/25

After merger of Capital First, with Mr. V. Vaidyanathan at the helm, management is focused on building a high-yielding retail banking franchise (average retail yield at >15%);

Infrastructure loans to be completely run down, selective lending in non-infra corporate segment:

3/25

Of the wholesale exposure, infra book has been almost halved since merger to Rs108bn and will be further rationalized to a very negligible proportion in 3-5 years;

4/25

Remarkable transition in asset and liability profile post the merger:

After having rolled out a 5-year strategic roadmap towards targeted RoA and RoE of 1.4-1.6% and 13-15% respectively, it has made significant strides on most operating parameters:-

5/25

Good Investment Books summaries by us,

Psychology of money,
https://t.co/R09FIfmMxL

Zebra in a lion country,
https://t.co/56AfJjY8dP

Quality Investing,
https://t.co/2y1fCgydLh

The Most Important Thing,
https://t.co/kg49bAWQQD

Capital