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Mega Rare Earth Element Thematic Report
We at Global Consilient Research are proud & humbled to announce the release of our 3rd thematic report on REEs
This report will not only give you a macro to micro view, but will also teach you about the different companies involved in India, USA and China in REE space
Here’s a quick snapshot of the report👇🏻
Divis Labs is trading at â‚ą11,000+, this is ~91x trailing earnings and ~66x based on our FY29 estimates
So how much future success is already in the price?
Here's GCR’s valuation framework 🧵
Read our thread on Innovator CDMOs here
nitter.cf/Gconsilient/status/212…
Deep Dive | India's CDMO Sector
The Backbone of Global Pharma Innovation! 🧵
What if the biggest beneficiaries of global drug innovation aren't the companies discovering drugs, but those developing and manufacturing them?
That's where Contract Development and Manufacturing Organisations (CDMOs) come in
In simple words, CDMOs help global pharmaceutical companies develop, scale and manufacture drugs, benefiting from high entry barriers, sticky client relationships and long-term manufacturing contracts
And India is emerging as a major CDMO hub, supported by its chemistry expertise, cost competitiveness and growing global outsourcing opportunities
What Do the Numbers Tell Us?
Our comparison of 11 Indian pharma and CDMO players reveals interesting differences
Revenue Growth Leaders (YoY):
- Blue Jet Healthcare: +127.1%
- Divi's Laboratories: +35.4%
- Laurus Labs: +33.4%
- Piramal Pharma: +28.1%
Highest Operating Margins:
- Anthem Biosciences: 41.4%
- Divi's Laboratories: 38.1%
- Neuland Labs: 30.6%
- Blue Jet Healthcare: 30.6%
Capital Efficiency (ROCE):
- Neuland Labs: 28.08%
- Anthem Biosciences: 25.78%
- Divi's Laboratories: 24.78%
These are company-level metrics, not exclusively CDMO-segment figures
đź’°So, are Valuations Getting Expensive? As several players command substantial valuation premiums:
- Sai Life Sciences: 103.3x P/E
- Laurus Labs: 98.9x P/E
- Divi's Laboratories: 91.3x P/E
- Anthem Biosciences: 87.8x P/E
These valuations reflect significant growth expectations, leaving limited room for execution disappointments
The Silent AI Beneficiaries?
Innovator CDMOs could quietly benefit from AI-driven process optimisation, improved manufacturing yields, faster development cycles and greater operational efficiency
The Bigger Picture
India's CDMO opportunity goes beyond low-cost manufacturing. It's about moving up the value chain into complex chemistry, innovative molecules and integrated drug development
The long-term winners will be those combining sustainable growth, strong margins and superior capital efficiency - not necessarily those trading at the highest valuations
Which Indian CDMO do you believe is best positioned for the next decade?
PS: A detailed YouTube video will be posted on this soon!
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Deep Dive | India's CDMO Sector
The Backbone of Global Pharma Innovation! 🧵
What if the biggest beneficiaries of global drug innovation aren't the companies discovering drugs, but those developing and manufacturing them?
That's where Contract Development and Manufacturing Organisations (CDMOs) come in
In simple words, CDMOs help global pharmaceutical companies develop, scale and manufacture drugs, benefiting from high entry barriers, sticky client relationships and long-term manufacturing contracts
And India is emerging as a major CDMO hub, supported by its chemistry expertise, cost competitiveness and growing global outsourcing opportunities
What Do the Numbers Tell Us?
Our comparison of 11 Indian pharma and CDMO players reveals interesting differences
Revenue Growth Leaders (YoY):
- Blue Jet Healthcare: +127.1%
- Divi's Laboratories: +35.4%
- Laurus Labs: +33.4%
- Piramal Pharma: +28.1%
Highest Operating Margins:
- Anthem Biosciences: 41.4%
- Divi's Laboratories: 38.1%
- Neuland Labs: 30.6%
- Blue Jet Healthcare: 30.6%
Capital Efficiency (ROCE):
- Neuland Labs: 28.08%
- Anthem Biosciences: 25.78%
- Divi's Laboratories: 24.78%
These are company-level metrics, not exclusively CDMO-segment figures
đź’°So, are Valuations Getting Expensive? As several players command substantial valuation premiums:
- Sai Life Sciences: 103.3x P/E
- Laurus Labs: 98.9x P/E
- Divi's Laboratories: 91.3x P/E
- Anthem Biosciences: 87.8x P/E
These valuations reflect significant growth expectations, leaving limited room for execution disappointments
The Silent AI Beneficiaries?
Innovator CDMOs could quietly benefit from AI-driven process optimisation, improved manufacturing yields, faster development cycles and greater operational efficiency
The Bigger Picture
India's CDMO opportunity goes beyond low-cost manufacturing. It's about moving up the value chain into complex chemistry, innovative molecules and integrated drug development
The long-term winners will be those combining sustainable growth, strong margins and superior capital efficiency - not necessarily those trading at the highest valuations
Which Indian CDMO do you believe is best positioned for the next decade?
PS: A detailed YouTube video will be posted on this soon!
Join our channel for more such insightful breakdowns
t.me/gcralphadesk
339
Deep Dive | India's CDMO Sector
The Backbone of Global Pharma Innovation! 🧵
What if the biggest beneficiaries of global drug innovation aren't the companies discovering drugs, but those developing and manufacturing them?
That's where Contract Development and Manufacturing Organisations (CDMOs) come in
In simple words, CDMOs help global pharmaceutical companies develop, scale and manufacture drugs, benefiting from high entry barriers, sticky client relationships and long-term manufacturing contracts
And India is emerging as a major CDMO hub, supported by its chemistry expertise, cost competitiveness and growing global outsourcing opportunities
What Do the Numbers Tell Us?
Our comparison of 11 Indian pharma and CDMO players reveals interesting differences
Revenue Growth Leaders (YoY):
- Blue Jet Healthcare: +127.1%
- Divi's Laboratories: +35.4%
- Laurus Labs: +33.4%
- Piramal Pharma: +28.1%
Highest Operating Margins:
- Anthem Biosciences: 41.4%
- Divi's Laboratories: 38.1%
- Neuland Labs: 30.6%
- Blue Jet Healthcare: 30.6%
Capital Efficiency (ROCE):
- Neuland Labs: 28.08%
- Anthem Biosciences: 25.78%
- Divi's Laboratories: 24.78%
These are company-level metrics, not exclusively CDMO-segment figures
đź’°So, are Valuations Getting Expensive? As several players command substantial valuation premiums:
- Sai Life Sciences: 103.3x P/E
- Laurus Labs: 98.9x P/E
- Divi's Laboratories: 91.3x P/E
- Anthem Biosciences: 87.8x P/E
These valuations reflect significant growth expectations, leaving limited room for execution disappointments
The Silent AI Beneficiaries?
Innovator CDMOs could quietly benefit from AI-driven process optimisation, improved manufacturing yields, faster development cycles and greater operational efficiency
The Bigger Picture
India's CDMO opportunity goes beyond low-cost manufacturing. It's about moving up the value chain into complex chemistry, innovative molecules and integrated drug development
The long-term winners will be those combining sustainable growth, strong margins and superior capital efficiency - not necessarily those trading at the highest valuations
Which Indian CDMO do you believe is best positioned for the next decade?
PS: A detailed YouTube video will be posted on this soon!
Today’s news about Jensen Huang clearly shows that Management Analysis is simply not as easy as it has been taught the traditional way in many equity research courses
They teach management analysis in a way which looks like this
Go into annual report, see their compensation, their qualifications etc etc, and call it analysis!
But in reality, there’s no way you can actually analyse how good or bad is management just by looking at their credentials or PR (yes, they hire PR agencies to brand themselves in a positive light)
So, the only practical solution to analyse management is by doing a Management Accountability analysis!
Here’s an example of Acutaas Chemicals in the attached image!
And that’s exactly how I teach equity research in our live batches👇🏻
Enrol for live classes here: superprofile.bio/vp/advanced…
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