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

Good Investment Books summaries by us,

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

Quality Investing,
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The Most Important Thing,
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Capital

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;

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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

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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;

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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

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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;

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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 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;

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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;

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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-

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-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.

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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

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 👇

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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;

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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:

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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;

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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:-

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