Hello Sir,
Hope you are doing well.
We have always enjoyed digging up really small companies in the market cap range of Rs 20 crore to Rs 500 crore. Earlier, we could even recommend a Rs 100 crore market cap stock to our Premium Members; however, now it's almost impossible considering liquidity issues.
Nevertheless, it's always good to read about such companies and an individual investor can always look for potential investment opportunities
So, for sometime, Kilpest India has been under our radar because of its Diagnostic kits business - TRUPCR. This company was reporting 25-30 crore annual sales before Covid-19; however, in FY 21 its sales jumped up to Rs 227 crore with PAT of Rs 114 crore. With the dwindling impact of Covid-19, the annual sales are again down to Rs 40-60 crore.
Below, we have shared our notes (unedited) from the Sep'22 presentation of the company to understand management's views regarding the outlook for the diagnostic kits business. Hope you find the details useful in your search of investment opportunities.
[Before that]: Recently we released a New Stock Recommendation for our Premium Members. It's a leading Pharmaceutical company with global leadership in its product segment, net debt free and available at just around 11.5 times FY 23 (E) earnings. Can read about the company HERE
You too can get it along with other recommendations, by subscribing HERE
Kilpest India - Notes from Sep'22 presentation
- Our subsidiary, 3B BlackBio Biotech India Limited is now over a decade old and is now regarded as one of the most reliable molecular diagnostic company in the healthcare market.
- We understand that everyone is keen to know the way forward for the company post COVID pandemic. Our growth rate has been consistent since pre-covid period and we have been achieving a growth rate of 30-35% year on year.
- Pre-COVID, i.e., in FY 20 we had a revenue of Rs 15.36 crore (diagnostic kits) which should be taken as the baseline for onwards. In FY 22, the Non-COVID Revenue is Rs 26.53 crore which shows that we are going strong on our growth trajectory of over 30% for Non-COVID products (YoY).
- With our clearly defined strategic priorities, we will hopefully continue to have a growth rate of 30-35% for the year 2022-23 as well.
- With COVID, the number of labs have increased and we are trying to increase our footprints for NON-COVID products in these labs. Also, we are launching new products out of R&D.
- Exports - We are expanding our footprints in the international market where we are now present in more than 29 countries which including USA, UK, & countries spanning Europe, Africa, Middle East & APAC.
- Export sales - FY 20 - 0.66 crore, FY 21 - 1.98 crore, FY 22 - 6.18 crore
- UK subsidiary - We are proud to state the fact that your subsidiary company 3B BlackBio has launched its own subsidiary company in the United Kingdom after entering into a Joint Venture Agreement with its European Distributor, HS Biolabs Limited based in Manchester, UK.
- TRUPCR Europe Limited has been launched in the Manchester, United Kingdom with a vision to accelerate the growth of TRUPCR® range of molecular diagnostic kits within the European market.
- TRUPCR Europe Limited has started participating in International Conferences from which we expect to get more traction.
- With these conferences, the visibility of TRUPCR Europe has increased and we are getting inquiries for providing distributorships and OEM solutions through which we will expand our footprints across Europe.
- Rapid Kit Business & Next-Gen Sequencing (NGS) Verticals - Our Rapid Kit manufacturing plant is ready & we are optimizing the products in R&D which have market potential, other than COVID Testing Kits.
- We will be launching some novel products in FY 2022-23 which are currently under R&D Stage which will allow us to capture a bigger market segment with better price realization.
- The company has again started working on the R&D and validations of NGS kits and we are developing products that will cater to the global market and not India alone.
(End)
Disclaimer: This is not a recommendation to buy/sell Kilpest India. These notes are as announced by the companies on exchanges and only for the purpose of information and education.
Best Regards,
Ekansh Mittal
Research Analyst
Web: https://www.katalystwealth.
SEBI Research Analyst Registration No. INH100001690
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Name: Ekansh Mittal Email Id: [email protected] Ph: +91 727 5050062
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