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)

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

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

Thread on Glenmark Life Science IPO 27 July 🧵:

Glenmark Life Science (GLS) is the wholly-owned subsidiary of Glenmark Pharmaceuticals Ltd;

In 2001-02, GLS launched the API manufacturing business; Currently, the company has two key business verticals: namely API and CDMO;

1/25

GLS is a leading developer and manufacturer of select high-value, non-commoditized APIs in chronic therapeutic areas, including CVS, CNS, pain, and diabetes;

As of FY21, API and CDMO contributed ~90.6 & 8.1% to GLS revenues respectively;

2/25

The company works with 16 of the top 20 generic pharma companies in the world and as of 31st May 2021, they have registered ~403 DMFs globally;

From the IPO proceeds, GLS will be using ~Rs 8bn as repayment of an outstanding purchase agreement to the promoter-

3/25

-for the spin-off of the API business. The company has also envisaged using Rs 1.53bn as capital expenditure;

This includes a new multi-usage facility, which will mainly focus on the company’s CDMO business aspiration from 4QFY23.

4/25

Key growth drivers for the Indian API industry:

👉India is on par with other countries in terms of technological capabilities and process efficiency;

👉The costs are very low in India: Domestic pharmaceutical facilities cost only 2/5th of what it costs to set up and-

5/25