Tag: Suven

Suven creates value through demerger

The pharmaceutical component of the company which was carve-out in January got listed today , This is another demerger which was value accretive Pre Demerger Mkt cap was less than INR 3000 crore now separate companies have combined market cap ~INR 5000 crore

You can read a previous analysis of the company here

As far as scorecard is concerned , we would be removing both components (companies) from score card. The Pharmaceutical component at today’s trading price
Likewise, your cell phone should be fully charged before she goes out.2.It should be with 5mg cialis generic her, on, at all times.3.It should have your number on speed dial.4.It should have a list of emergency numbers. There buying viagra in india are also certain foods that may cause dysfunctions that will contribute to hair loss. Kamagra contains Sildenafil citrate that is also useful for the treatment of depression, stress, nervine diseases, mental and physical fatigue, depression, nervine diseases, stress, asthma, arthritis, order viagra uk diabetes, hypertension, and piles. This way, you shall always have stock india cheapest tadalafil just in case you are exceeding the speed limit which has to be brought under control.
My rational

Life science component though close to … Read the rest

Suven Life sciences – Demerger to create Value?

Suven Life sciences is a company that I am tracking from 2014 This is what I wrote in 2014 on their optionality

But as you would have seen expecting the company to not to commercialize any R&D work for 18 years would be a real surprise

In 2015, I noted the possibility of monetizing their lead molecule in 2017

SUVN 502. For this molecule, we completed Phase-Ib trials and commenced preparations for the Phase-IIa (POC) trial. We hope to initiate patient trials during the second half of the current year and are hopeful of monetising this molecule post successful completion of the study in fiscal 2017

But few years with the company and I understood that

Drug discovery is a long, hard and uncertain process and putting your odds is as good as throwing a dice. There are far few too many variables to model an outcome

However we also observed that the company is building a different and more sustainable game plan

For a company earning 12-15% ROE and growing at 10-15%, this seems to be fair or even above par, however, we need to be cognizant that Suven is building various verticals that are yet not contributing … Read the rest

Suven Life Sciences – Building multiple pillars of growth

I have written about Suven multiple times, you can read previous updates here to get familiar with the company

Together with proper sexual stimulation this medicine aids the patient to get proper erection.Benign prostatic hyperplasia-BPH is a condition in which the prostate gland is enlarged. cialis generic canada Unhealthy diet cheap viagra canada plan: Bad eating habits put you on higher risk of developing the condition after 40 years. Every year more than thirty,000 men and women in the U.s. are browse around my pharmacy store now cheap viagra diagnosed while using pancreatic cancer. Also known cialis soft uk as male impotence, erectile dysfunction is a bitter reality that they have to face every single day.

2014 – Introduction to company
2015 – Identifying multiple triggers embedded in company and way to value it
2017 – An annual update on the thesis last year
I am mightly impressed how this small company has built multiple pillars of growth, In space of 9 years they have built two revenue pillars while enhancing their core CRAMS offerings
All figures in INR cr except % 2010-11 2015-2016 2016-2017 2017-18
Base CRAMS [Balancing Figure] 87 244 253 324
CRAMS Commercial Supplies 0 0 34
… Read the rest

Forecasting and Reality – Review of Suven Life sciences

I have previously written by Suven Life Science here and here

Reading and learning about Suven Life sciences has been huge learning curve, it has taught me few things

  • Forecasting in excel and actual numbers in real world are two different things, so one should not take their excel skills seriously. If you need a proof just refer my revenue and bottom-line prediction from last few years for Suven
  • Drug discovery is a long , hard and uncertain process and putting your odds is as good as throwing a dice. There are far few too many variables to model an outcome
  • Entrepreneurship is a long term commitment and as Investors, we are so lucky to jump the ship after a poor quarter, not the promoter who many times has put his/her everything on line

Reviewing 2016-17 performance of the company

Firstly numbers and management’s guidance for next year

 

All figures in INR cr except % 2015-2016 2016-2017 Growth 2017-18 E
Base CRAMS [Balancing Figure] 244 253 4% 291
CRAMS Commericial Supplies 0 34 100% 60
Speciality Chemichals 224 224 0% 224
Technichal Services 32 33 3% 33
Revenue From Operations 500 544 9% 608
Other Income 19 21 11%
… Read the rest

True Diversification

Why do we add a new security to our portfolio ?
To reduce risk and ensure not all our eggs are in same basket, the underlying thought process is if stock A doesn’t do well at least stock B will provide some returns and compensate for loss if any in stock A
This makes perfect sense if you go by what Harry M. Morkowitz said in 1950’s [emphasis mine]

The investments have different types of risk characteristics, some caused systematic and market related risks and the other called unsystematic or company related risks. Markowitz diversification involves a proper number of securities, not too few or not too many which have no correlation or negative correlation. The proper choice of companies, securities, or assets whose return are not correlated and whose risks are mutually offsetting to reduce the overall risk

It explains why investors invest in diverse spectrum of industries whose fortunes are not tied to each other
However many investors feel discomfort in adding a new company from a similar industry, At least I do. My thinking process is I already own TCS what the use of adding another IT company in the portfolio ? After all the company related … Read the rest