Incorporated in 2001
Fresh Issue of 165crs (50 for capex | 48 for Working capital | 20 for debt payment) + OFS of 237crs (Partially by promoter & PE Tano selling out as the fund tenure is up)
~ Total raise of 402crs
Windlas Biotech IPO notes 💊
'What's in a name? that which we call a rose by any other name would smell as sweet' ~Shakespeare
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A thread 🧵👇
#IPOwithJST
Incorporated in 2001
Fresh Issue of 165crs (50 for capex | 48 for Working capital | 20 for debt payment) + OFS of 237crs (Partially by promoter & PE Tano selling out as the fund tenure is up)
~ Total raise of 402crs
A Contract manufacturer for formulation cos. (204 in total) for Indian markets & a small domestic OTC biz
3279 products, 4 plants with 700cr tablets/capsules capacity
Emphasis on chronic (60% of rev) & complex generics (70% of rev)
Revenues:
FY11 - 100cr 👉 FY14 - 200cr 👉 FY21 - 400cr
Growth is similar to the Indian pharmaceutical sector, not gaining any market share even after increasing products.
Customers include Pfizer, Sanofi India, Eris, Cadila, etc.
400+ organized & 15000 unorganized players in the same space: 2% market share
Some of the things that can drive consolidation: Customers preferring better compliance
However, a single customer usually has 35-40 contract manufacturers for products.
Scale: Players much larger also show a lack of any improvement in metrics.
Remains a low margin & high asset turnover business.
Top customer accounts for 11% of rev & Top 10 account for 58%
Interestingly, ramped up number of customers from 97 to 204 in the last 2yrs, however, the concentration remains constant.
3-4crs spends: at 1% of sales, Increased complex portfolio to 934
Complex generic products have technical complexity in (i) manufacturing or handling of the API; or (ii) formulation; or (iii) route of delivery; or (iv) pairing with a device to make a drug-device combo.
Utilization at 35-40% currently, can go up to 60-65% before they would have to increase capacity again.
- Will look for inorganic growth
- Industry to grow at 1.25-1.5x GDP: Increased capacities inline
- To invest 50crs in Injectables facility
- Increase customer base
- Scale-up Domestic OTC & trade generics business
- Bad Cashflow conversion (20-30% EBITDA) due to huge WC investments
- Low margin business (4-5% net & 10-12% EBITDA & 35% gross margins)
- WC days to stay at 65-75 days
- Asset turnover at 4-5x & can take it to 6-7x
- Rev scaleup needs to be monitored
- Dependence on their customers doing well: 90% in B2B business
- Highly competitive, no moat & gruesome business
- Shady dealings with a promoter owned subsidiary: Windlas Healthcare
- No geographical diversification wrt plants.
- Formulations players backwardly integrating their operations: Eris doing the same as it helps them maintain consistent quality & achieve higher margins
- API prices going up (No long term contract with supplier)
- Litigations 👇
- Loss-making Subsidiaries.
At valuations of 2.3x P/S, 19x P/EBITDA & 65x PE, this is valued much higher than most Indian branded formulations are; leaving little to nothing on the table for the investors.
End of Thread.
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**Thread on Bravery of Sikhs**
(I am forced to do this due to continuous hounding of Sikh Extremists since yesterday)
Rani Jindan Kaur, wife of Maharaja Ranjit Singh had illegitimate relations with Lal Singh (PM of Ranjit Singh). Along with Lal Singh, she attacked Jammu, burnt - https://t.co/EfjAq59AyI
Hindu villages of Jasrota, caused rebellion in Jammu, attacked Kishtwar.
Ancestors of Raja Ranjit Singh, The Sansi Tribe used to give daughters as concubines to Jahangir.
The Ludhiana Political Agency (Later NW Fronties Prov) was formed by less than 4000 British soldiers who advanced from Delhi and reached Ludhiana, receiving submissions of all sikh chiefs along the way. The submission of the troops of Raja of Lahore (Ranjit Singh) at Ambala.
Dabistan a contemporary book on Sikh History tells us that Guru Hargobind broke Naina devi Idol Same source describes Guru Hargobind serving a eunuch
YarKhan. (ref was proudly shared by a sikh on twitter)
Gobind Singh followed Bahadur Shah to Deccan to fight for him.
In Zafarnama, Guru Gobind Singh states that the reason he was in conflict with the Hill Rajas was that while they were worshiping idols, while he was an idol-breaker.
And idiot Hindus place him along Maharana, Prithviraj and Shivaji as saviours of Dharma.
(I am forced to do this due to continuous hounding of Sikh Extremists since yesterday)
Rani Jindan Kaur, wife of Maharaja Ranjit Singh had illegitimate relations with Lal Singh (PM of Ranjit Singh). Along with Lal Singh, she attacked Jammu, burnt - https://t.co/EfjAq59AyI
Tomorrow again same thing happens bcoz fudus like you are creating a narrative oh Khalistan. when farmers are asking MSP. (RSS ki tatti khane wale Kerni sena ke kutte).
— Ancient Economist (@_stock_tips) December 5, 2020
U kill sikhs in 1984 just politics. To BC low IQ fudu Saale entire history was politics.
Hindu villages of Jasrota, caused rebellion in Jammu, attacked Kishtwar.
Ancestors of Raja Ranjit Singh, The Sansi Tribe used to give daughters as concubines to Jahangir.
The Ludhiana Political Agency (Later NW Fronties Prov) was formed by less than 4000 British soldiers who advanced from Delhi and reached Ludhiana, receiving submissions of all sikh chiefs along the way. The submission of the troops of Raja of Lahore (Ranjit Singh) at Ambala.
Dabistan a contemporary book on Sikh History tells us that Guru Hargobind broke Naina devi Idol Same source describes Guru Hargobind serving a eunuch
YarKhan. (ref was proudly shared by a sikh on twitter)
Gobind Singh followed Bahadur Shah to Deccan to fight for him.
In Zafarnama, Guru Gobind Singh states that the reason he was in conflict with the Hill Rajas was that while they were worshiping idols, while he was an idol-breaker.
And idiot Hindus place him along Maharana, Prithviraj and Shivaji as saviours of Dharma.
