#Indoco Remedies’ management seems to be very optimistic about strong expansion in margins. They have an export order book of ₹150 with export margins expected to increase by 400-500 bps over the next 3 quarters.
They will achieve EBITDA margins over 20% in this financial year and have said that they are confident of taking margins to over 25% over the next 3 years.
Management has said that there is huge scope for operating leverage to play out at the Baddi facility. They expect to reach 70% capacity utilization by December 2023
They have set an aspirational target of ₹5000 Cr topline over the next 5 years. ₹5000 Cr sales with 25% EBITDA margin = ₹1250 Cr EBITDA. Will be interesting to see. Tracking it closely.
Gufic is an R&D focused pharma company that is involved in contract manufacturing, branded generics, herbal formulations and new drug delivery systems.
The company entered into the contract manufacturing business in 2007 and today it manufactures
lyophilized injectables for most of the large pharma companies in India.
Company then entered the branded generics business with the launch of several products in the critical care space.
Detailed 🧵 on #SakarHealthcare - Micro Cap which is doing Huge Capex for Oncology Drugs 💊💊
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CMP - ₹ 233
Company Overview:
Sakar Healthcare is a pharmaceutical company incorporated in 2004. They do contract manufacturing majorly for sterile drugs and they also export to various emerging markets under their own brands.
They manufacture a variety of dosage forms including Liquid Injections, Lyophilized Injections, Dry Powder Injections, Dry Powder Syrups and Oral Solids Like Tablets and Capsules. Their biggest therapy area is Antibiotics which contributes to 41% of revenues,
1. De-growth in CRAMS and growth in specialty chemicals division.
2. Having better visibility now. Getting understanding from innovators that next year will be a normal year
3. 3. Suven pharma business should be looked at Year on Year and not qtr to qtr due to change in product mix and CRAMS orders can have Qtr to Qtr Volatility
4. For complete year EBITDA margins guidance of 40% + is intact
5. This qtr revenues from pharma was lower compared to agro chemicals but it will normalize over the next qtrs.
6. In this qtr Very small revenue from the covid drug. From next qtr it should come. It will be one off order
1. About Company
Raunaq Automotive Components Limited(RACL) was incorporated in 1983 and is engaged in manufacturing transmission gears and shafts for automotive and industrial applications.
It had a solid vision to create a diverse customer base ranging from two-wheelers to Heavy Commercial vehicles, a 100 CC commuter bike to a 1200 CC Sports Motorcycle, a 150 cc Premium Scooter to a 1500 CC bike.
Net Profit vs Cash Flow from operations (CFO) - What is more important?
A short thread with examples
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1. Net income is the profit a company has earned for a period, while cash flow from operations measures the cash going in and out during a company's day-to-day operations i.e., the cash which is generated through its core business.
2. Net income is calculated by subtracting the cost of goods sold, operating expenses, depreciation & amortization, interest expense and taxes from total revenue.