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Investment Ideas

The document outlines investment ideas for three companies: Epigral, Netweb Technologies, and Laurus Labs, highlighting their growth potential and financial performance. Epigral is the sole manufacturer of Epichlorohydrin in India with plans to double its capacity, while Netweb Technologies reports record income driven by AI and 5G demand. Laurus Labs is transitioning to a high-margin CDMO model, which may lead to significant revenue growth despite current under-utilization of its facilities.

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36 views1 page

Investment Ideas

The document outlines investment ideas for three companies: Epigral, Netweb Technologies, and Laurus Labs, highlighting their growth potential and financial performance. Epigral is the sole manufacturer of Epichlorohydrin in India with plans to double its capacity, while Netweb Technologies reports record income driven by AI and 5G demand. Laurus Labs is transitioning to a high-margin CDMO model, which may lead to significant revenue growth despite current under-utilization of its facilities.

Uploaded by

deepraj official
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Investment Ideas

Epigral -
• Staggering YoY growth in Net proft.
• Only manufacturer of Epichlorohydrin (ECH) in India; demand is set to double within one year.
• Largest domestic player in CPVC, Plans for doubling capacity in CPVC resin and Epichlorohydrin to
150,000TPA and 100,000TPA , respectively by H1FY27.
• New Chemistries under development to open new growth avenues.
• Business is consistenly focusing on derivative products which are high in margins.

Netweb Technologies-
• Highest ever quarterly income of ₹3,340 million and PAT of ₹303 million reported
• Increased capacity help the company to achieve revenue of 2000 cr. easily
• Due to the proliferation of 5G networks, the demand for GPU-based servers seems to be increasing;
• AI emerged as a key growth driver, contributing approximately 14.7% to operating revenue for the 9-month
period FY25, reflecting a YoY growth of 136.3%.
• The company has constantly increased the return on the incremental capital, which gives a sense of lots of
investment opportunities
• Plans to expand capabilities in the HPC and supercomputing sectors, targeting various verticals including oil and
gas.

Laurus Labs
• The company is going through a tough transition into CDMO, and this could have a major impact on its revenue
but eventually, after a year or so company may witness staggering growth in revenue and margins as well
because CDMO is a high-margin business and ARV which contribute more to the revenue is commoditised
business;
• Company has spent very aggressively on Capex in last 3 years of whopping 2600 cr. Hence most of its
manufacturing facilities are under-utilised. As their capacity utilisation improves, so shall the company’s
profitability. Apart from this Capex guidance for the next 2 years 1800 – 2000 cr ( majority of that for CDMO
business)

Other Stocks in my list include


• Neuland (Priority) - Of which i have already shared a detailed research report.
• Natco pharma - Trading at goog P/E of around 7. Perfect financials and growth prospectus are preety good
various verticals.
• PG Electroplast - In Q3FY25 Operating revenues surged by approximately 82% to surpass ₹967 crores with
Net profit surged by around 110% to ₹40.14 crores.

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