Rattibha

Financial Sarthis

@financialsarthi

26 Tweets 12 reads Jul 13, 2022

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A thread on #SupriyaLifescience : The Next DIVIS in Making?
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COMPANY JOURNEY:-

OVERVIEW:-
a. Supriya Lifescience is a manufacturer and supplier of active pharmaceutical ingredients (APIs), with a focus on research and development.

b. As of December 31, 2021, the company has niche product offerings of 38 APIsfocused on diverse therapeutic segments such as antihistamine, analgesic,anaesthetic, vitamin, anti-asthmatic and anti-allergic.

c.SLL is among the largest exporters of Salbutamol Sulphate in India contributing to31% of the API exports from India in FY21 in volume terms.

d.Supriya Lifescience has consistently been the largest exporter of ChlorpheniramineMaleate (antihistamine and anti-allergy) and Ketamine Hydrochloride (painmanagement) from India, contributing to 45%-50% and 60%-65%, respectively, of the API exports from India, between FY17-FY21

Expansion of new R&D is in progess and will go live in next FY
The company has diversified operations with presence in 86 countries with 1,296customers and its sustained global clientele.

Major Customers:-

PRODUCT PORTFOLIO:-

MANAGEMENT:-
Good Business are Run by Good Management.
The company was founded by Dr. Satish Wagh, a first generation entrepreneur with an experience of more than 35 years in the pharmaceutical industry.
Interview of his with @varinder_bansal a must watch
youtube.com

STRENGHTS:-
A. LEADERSHIP POSITION IN MANY PRODUCT:-

B. PRODUCT DIVERSIFICATION RISK MITIGATION:

C. BACKWARD INTEGRATION:-
The backward integration ofmanufacturing of API ensures steady supply of intermediates. As on 31stDecember, 2021, 12 of its existing products are backward integrated, which contributed 67.1% of the total revenue during FY21.

D. DIVERSIFIED REVENUE GLOBALLY :-

E. R&D MANUFACTURING FACILITIES:-

F. STRONG FINANCIALS:-

RISKS:-
Following Risk are associated:-
a.Customer concentration
b.Product concentration
c. Regulatory Bodies

COMPARSION WITH #DIVISLAB (BAAP OF ALL API'S)

Q3 CONCALL IMP POINTS:-
Mr Ashish is CFO
q4 is one of best qtr for co and 40% margin expectation which is super

CAPEX PLANS:-

WILL MANAGEMENT ABLE TO WALK THE TALK??

SWOT

FINANCIALS:-
Consistent & strongest
Sources: Company website & Brokerage reports

Technical Analysis:-
Postq3 nos company has taken a beating on shareprices but now a base is formed and chart saying its ready to rock again:- (invested and biased)