Equity L/S Analyst | Forensic Accounting | India, Yellowstone Equity

Ankit Agrawal, CFA

I possess investment research experience across asset classes and geographies, acquired at Investcorp (New York) and Howe & Rusling (Rochester). At Investcorp, an alternative asset manager, I was part of an investment team managing >$1bn in discretionary client assets. I was also a member of investment recommendation, monitoring, cross-asset strategy and macro outlook committees that met periodically for investment decisions and top-down views. At Howe & Rusling, a long-only asset manager, I helped cover US large-cap equity investments across sectors for growth and income focused portfolios as well as assisted in managing a US small-cap growth focused equity portfolio. I possess an MBA in finance and corporate accounting from University of Rochester in US, a CFA Charter, and an Engineering degree from Indian Institute of Technology Bombay in India.  

My current focus is L/S equity fundamental research across market cap and sectors with an eye on corporate governance and forensic accounting. I am currently based in India and my current coverage universe is biased towards India.

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Regulatory Disclosure: Note that Ankit Agrawal (Proprietor of Yellowstone Equity) is a SEBI registered Research Analyst (Registration No.: INH000007216). Registration granted by SEBI and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors. Investment in securities market are subject to market risks. Read all the related documents carefully before investing.

Research Analyst Contact Details -
Address: A-602, Titanium Business Park, Makarba, Ahmedabad - 380051 |
Email: services@yellowstoneequity.com |
Mobile: +91-7575817289

Compliance/Grievance Officer -
Name: Ankit Agrawal |
Email: services@yellowstoneequity.com |
Mobile: +91-7575817289
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Equity L/S Analyst | Forensic Accounting | India

Cadila Healthcare: Q3FY21 Earnings - Innovation in Focus

Saroglitazar: Targeting Non-Alcoholic Steatohepatitis, a Potential US$35-40 Billion Market.

Cadila Healthcare: Potential More than 30% Upside.

Equity Bottom-Up

<p><a href="https://www.smartkarma.com/entities/divi-s-laboratories-ltd" target="_blank" data-smartkarma-citation="entities:4871:1" rel="noopener">Divi'S Laboratories (DIVI IN)</a> is a leading API manufacturer with dominant market share (60-70% in most cases) across the globe in molecules like Naproxen, Dextromethorphan, Gabapentin, etc. While Divi's has done well this past year with tailwinds from China supply disruption, we believe the environment is normalizing with supply from China going back to pre-COVID levels. We think the current margin expansion to 40%+ levels has been temporary and is likely to stabilize back to &lt;40% levels. At the same time, valuations have peaked significantly to around 50x P/E, highest ever since the boom pre Global Financial Crisis. Growth profile is also maturing as 50% of current revenues come from old APIs which at best have potential to grow in mid-single-digits range.</p>
<p>Below we elaborate on some of the aforementioned concerns while also balancing our view with some of the positives that could pose upside risk to our thesis. However, overall we remain bearish on the stock. </p>

Divi'S Laboratories (DIVI IN) is a leading API manufacturer with dominant market share (60-70% in most cases) across the globe in molecules like Naproxen, Dextromethorphan, Gabapentin, etc. While Divi's has done well this past year with tailwinds from China supply disruption, we believe the environment is normalizing with supply from China going back to pre-COVID levels. We think the current margin expansion to 40%+ levels has been temporary and is likely to stabilize back to &lt;40% levels. At the same time, valuations have peaked significantly to around 50x P/E, highest ever since the boom pre Global Financial Crisis. Growth profile is also maturing as 50% of current revenues come from old APIs which at best have potential to grow in mid-single-digits range.
Below we elaborate on some of the aforementioned concerns while also balancing our view with some of the positives that could pose upside risk to our thesis. However, overall we remain bearish on the stock. 

Divi's Labs: Peak Margins, Peak Valuation and Maturing Growth Profile - Juice Is No More

Divi's Laboratories

Divi's Labs: Peak Margins, Peak Valuation and Maturing Growth Profile - Juice Is No More