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Sequent scientific

Discussion in 'Fundamental Analysis' started by ankur, Jun 6, 2021.

  1. ankur

    ankur Member

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    Hi Shabbir,

    I have taken a cue from your portfolio but read about all their business in animal pharmaceutical API.

    I have few queries on this :

    1. As per fundamentals checklist they purely in regulated business then how you have selected this as you avoid regulated ones.
    2. They have acquired lots of companies for expansion and gained expertise but you generally avoid acquisition and subsidiaries.
    3. They are also dependent on china for raw material. Is this a concern.
    4. Why sequent scientific over NGL fine chemicals in spite of knowing NGL are in unregulated market.
    5. CA harbour bought majority stake in this. Now, what will be the impact of this.
    6. Last but not least about their growth for next 4-5 year.

    Regards,
    Ankur
     
    ankur, Jun 6, 2021
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  2. shabbir

    shabbir Administrator Staff Member

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    I avoid business which are regulated for profits. Say for example Tobacco where companies make more money then they are taxed higher.

    Every Pharma business is regulated or even every bank is regulated perse.
    Nope I don't avoid acquisition. What I avoid is high debt for the acquisition. On the contrary, they have been acquired by a global company which has expertise in animal pharma segment.
    No. I see this as an opportunity. I am yet to see a company going down because they can't import some items from some country. The good companies can source things from elsewhere at a different price point.
    The global player that acquired sequent is a market leader in the niche.
    They are the new promoter and so I invested in the stock. Market leader in animal pharma business.
    I expect 20%+
     
    shabbir, Jun 7, 2021
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  3. ankur

    ankur Member

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    Hi Shabbir,
    The global player Carlyle bought most of the share and it is global investment firm.
    Now who will take their core decisions.

    Can you put some more light here.
     
    ankur, Jun 8, 2021
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  4. shabbir

    shabbir Administrator Staff Member

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    Carlyle group has so many investment in Pharma and animal pharma sector and so they can take those core decisions
     
    shabbir, Jun 8, 2021
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