How Ethanol Policy changed the fortunes of GLOBUS SPIRITS❓
👉So, Globus spirits is one of the largest grain based distillers in India.
👉They sell country liquor in the markets of Rajasthan ,Haryana,West Bengal and Delhi.
Have 30% mkt share in Rajasthan in IMIL segment.
👉They enjoy around 30%+ Ebitda margins in IMIL segment (earlier they were 20%+)
👉So, the co. decided to enter Bihar market and set up a distillery there.
👉And when all the capex was completed,they faced a huge setback from the state govt.
👉After Nitish Kumar was sworn in as C.M., he declared Bihar a Dry state,as a result of which their plant was shut down.
👉After all the legal struggles and battle they received an order from High Court in oct 2019 whch allowed them to operate d plant in order to produce ENA.
FOIL is in d oleo chem based additives buss with majority of additives sales coming from food (30%) & plastic(40%) segm. together contributing 70% to d overall revenues & rest being contri. by additives like paints, rubber, cosmetics etc.
Founded in 1970, by Mr. Ramesh Shah, a Mumbai-based businessman wid experience in chem. trading and Mr. Prakash Kamat, a skilled technocrat from Institution of Chemical Technology.
Promoter hold 75% stake & only 3.48% (10.65 lacs shares) r available for Retail shareholders.
Co. claims to be d largest organised player of Oleo-chem based green additives in India.
-Amng top 6 global players in the specialty food emulsifiers
-1 of d 5 global players in d polymer additives industry
-dey also claim to develop proprietary tech. to mfg green additives.
LAURAS LABS Q1FY21: Marvellous no's
-Operating Leverage comes into play
-Margins aided by Backward Integration👍
-Finance cost ⬇️
- Ebitda Marg.- 29.29% vs 15%
-Pat Marg. 17.63% vs 2.74%
ROCE-32.3% ROE-37% (ANNUALIZED)
Co. has successfully derisked its business from mainly an ARV API co. to diff segments.
-Has been star performer. Reaping rewards of past inv.
-Good predictability of buss. bcoz healthy order book in both Tender & non-tender seg.
-As per mgt they r at full capacity utilization lets see how much more incremental sales it can generate in FDF.
-A HYDERABAD based pharma co. having presence in 4 VERTICALS - API’S, GENERIC–FDF(fixed dosage formulations), Synthesis and Ingredients.
- founded by Dr. Satyanarayana Chava (CEO) around 2007
- R&D spend 5.7% of Rev.
-750+ scientists and 50+ PHDs
-Carries out its operations through 6 plants – all USFDA approved except UNIT-5 (CDMO) which is a dedicated Hormone and Steroid facility for ASPEN PHARMA.
- Total capacity 3615 KL, 751 reactors and 5 billion tablet capacity
-65% is export revenue and 35% is domestic revenue
- UNIT1 & 3 contibutes 80% of topline.
- Unit-2 is sole US formulations facility wid capacity of 5 bn tabs/capsules per yr also undergoing expansion which will be operational by Sept’20.
-Unit-6 is for captive API consumption
- 30years old co. engaged in R&D, mfg & marketing of bulk drugs, intermediates and custom synthesis of APIs (CMS)
- Cleared 15 USFDA audit without failure.
- 93% of revenues through regulated markets
-3 Mfg Sites Total capacity - 729 Kilo Ltr
-Unit 3 (197KL) was acquired 2017 for about Rs.100cr & it was largely funded through debt.
-Unit 3 still hasn't contributed to the rev. & it is expected to contribute in FY21
-Business is divided into 2 main segments
1.GENERIC DRUG SUBSTANCE
2.Custom Manufacturing Solutions (CMS
1.GENERIC DRUG SUBSTANCE (GDS) contributed 68% to FY20 Topline
is further divided into 2 verticals. 1.Prime Api's (High Vol. Low Value)
2.Niche Api's(Low vol. high Value)