Thread by @drprashantmish6

#Shivalik Rasayan Ltd

1- CMP 285, MCAP 390 Cr , Promoters Holding 52.92% , no pledge , debt free company.
2- SRL holding 39.52% shares in its another company Medicamen biotech - value around 135 Cr as of today .

3- BV 127, last 3 yrs OPM between 14-16% , Last 3 years average ROE above 20 and ROCE above 20 and fy 19-20 CFO is postive ( I am not good in financials so if you find any mistake please rectify it )

4- Company is a leading Indian manufacturer of organophosphorus insecticides - Dimethoate (largest producer) and Malathion technical (second largest producer ) in India .( promotors bought this company in 2002 , it was a sick unit at that time and 2016 acquired medicamen biotech

5- Till now its agrochemicals business is showing good growth but I am more excited about its API segment where commercial production will start very soon .

6- their commercial production for Dahej products will start soon and where they will manufacture API ( oncology and non oncology) which will be forwardly integrated to Medicamen Biotech as well as sells to domestic and international market also .

7- To achieve good growth in oncology segment they appointed Dr Shrawat ( previously with Fresenius kabi oncology , Shilpa Medicare and Dabur pharma ) and Dr Akshay Chaturvedi ( previously with Shilpa Medicare and Dr Reddy )

8- In Dahej they are planning to start production in phased manner with 36 oncology products, 4 cardiovascular, 5 CNS , 4 diabetic , 02 HIV and 12 others .

9-In Dahej Total 8 blocks are proposed with 4 for oncology and 4 for non oncology and they will start with 2 block ( one block each) then new blocks will be added in phases and i think it’s a good strategy to expand in phases with aim to remain debt free )

10- they already developed some oncology APIs and non oncology APIs and some are under development

11- Some Developed API ( oncology)
(a)Capecitabine - for Breast and colorectal cancer
(b)Azacitidine - for blood cancer

C) Busulphan -for blood cancer, although better alternative is available but still used because of low cost
(d) Bendamustine HCL - for blood cancer
(E) Temozolomide - for Brain tumors
Although many companies in India ( Shilpa , Natco , sun Alkem Dr Reddy , Lupin )are already

manufacturing all these molecules , now it will be interesting to watch how they will perform in front of big players .

12-Some non oncology API ( already developed)
(A) Fingolimod hydrochloride- initialy developed by Novartis for Multiple sclerosis, now patent free and INTERSTING IS THAT ITS TRIALS AGAINST COVID IS GOING ON .

(b) Dimethyl fumarate - for multiple sclerosis
(C) Pirfenidone - for lung fibrosis
(D) Ambroxyl - for cough with mucus , very commonly used
Apart from that many oncology and non oncology products are in R& D .

14-I like the promoters because if you see their another company Medicamen Biotech then you will find that they acquired opal pharma Australia is sept 19 for around 2 Cr and in recently published their q4 you will find opal did 8 Cr of sales with PBT of 1.5 Cr in only one quarter

So because of promoters I bought this stock and in I am sure that even in competitive market also they will perform well looking at past record and with alteady proven track record in insecticide market for them it will be interesting to see how they will scale up API business.

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