Nice writeup Dhruv. But don't you think that even in a business with a distinct competitive advantage they have a key man risk (Mr. Sinha). wouldn't it mean that there future growth rather depends on the ability of the management rather than the industry environment? Also, can it be a case for appreciating luck as skill (Post 2018 it has been a good for pharma companies)?
Also I did some distributor visit for channel check posing as an MCC customer.
Two observations came in: too much commoditization and no brand recall. In fact 6 out of 11 distributors did not even recommend sigachi since cheaper options of same quality were available ( Quality is solely their opinion)
Hi Dhruva, my biggest concern here is their DRHP where they mentioned that they transferred the trademark Sogachi to some other company for free in 2018. Although not suspicious, but this company will start charging 1 percent of Sigachi sales as trademark cost.
Importantly, this firm is majorly ownerld by promoter family.
Good stuff Dhruv, thoroughly enjoyed the short story.
What is the reason behind venturing into maintaining plants for others and what are the key risks there and again entering to ethanol making ( I think that Kurnool project is for Ethanol not for CCS)
Nice writeup Dhruv. But don't you think that even in a business with a distinct competitive advantage they have a key man risk (Mr. Sinha). wouldn't it mean that there future growth rather depends on the ability of the management rather than the industry environment? Also, can it be a case for appreciating luck as skill (Post 2018 it has been a good for pharma companies)?
Also I did some distributor visit for channel check posing as an MCC customer.
Two observations came in: too much commoditization and no brand recall. In fact 6 out of 11 distributors did not even recommend sigachi since cheaper options of same quality were available ( Quality is solely their opinion)
Hi Dhruva, my biggest concern here is their DRHP where they mentioned that they transferred the trademark Sogachi to some other company for free in 2018. Although not suspicious, but this company will start charging 1 percent of Sigachi sales as trademark cost.
Importantly, this firm is majorly ownerld by promoter family.
Good stuff Dhruv, thoroughly enjoyed the short story.
What is the reason behind venturing into maintaining plants for others and what are the key risks there and again entering to ethanol making ( I think that Kurnool project is for Ethanol not for CCS)
Is this prudent allocation of capital ?