Hello Sir,

Hope you are doing well.

Recently, we came across some stock ideas like Kilpest India which provide Molecular diagnostics kits.

Diagnostic labs, hospitals, etc. are the customers of such companies.

We tried to find out more about the kits industry and also came to understand a bit about RT-PCR test.

Hope you find the details useful for your own investments or to add the stock to your watch list:

 

Before that, a few days back we released our New Stock Recommendation for Alpha and Alpha + Members 

It's a minerals processing company, largest in its segment, has captive raw material sources, grown PAT by ~300% in the last few years, de-leveraging balance sheet, 2nd generation promoters and available at only ~6 times post-tax earnings

You can get it along with other recommendations, by subscribing HERE

 

Diagnostic Kits Industry

  • What is Diagnosis? It's the process of determining the nature of disease or disorder and distinguishing it from other possible conditions. Around 70% of the medical decisions related to disease diagnosis, management, and prevention are based on diagnostics.

Source: Edelweiss

  • What is Molecular Diagnostics?
    • It is referred to as the detection of genomic variants, aiming to facilitate detection, diagnosis, sub-classification, prognosis, and monitoring response to the therapy
    • It helps in expand scientific knowledge of natural history of diseases
    • It helps identify individuals who are at risk of acquiring specific diseases
    • It helps in diagnosing infectious and other human diseases at the molecular level

  • Molecular Diagnostic Techniques:
    • Polymerase Chain Reaction (PCR)
    • Real-Time qPCR
    • In Situ Hybridization (ISH or FISH)
    • DNA Chips and Microarrays
    • Mass spectrometry (MS)
    • Sanger Sequencing (CE)
    • Next Generation Sequencing (NGS)
  • RT-PCR
    • Over the last 2 years, a term we came across often was RT PCR. Invention of PCR (polymerase chain reaction) has led to an enormous breakthrough in clinical DNA testing
    • PCR-based techniques require relatively simple instrumentation and infrastructure, utilize only minute amounts of biological material and are highly compatible with clinical routine
    • PCR tests are a fast, highly accurate way to diagnose certain infectious diseases and genetic changes
    • The tests work by finding the DNA or RNA of a pathogen (disease-causing organism) or abnormal cells in a sample
    • DNA is genetic material that contains instructions and information for all living things
    • RNA is another type of genetic material. It contains information that has been copied from DNA and is involved in making proteins
    • Most viruses and other pathogens contain DNA or RNA
    • Other tests may miss early signs of disease because there aren't enough viruses, bacteria, or other pathogens in sample, or the body hasn't had enough time to develop an antibody response
    • PCR tests can detect disease when there is only a very small amount of pathogens
    • During a PCR test, a small amount of genetic material in a sample is copied multiple times
    • Copying process is known as amplification
    • If there are pathogens in the sample, amplification will make them much easier to see
    • Certain viruses, including COVID-19, are made up of RNA rather than DNA. For these viruses, the RNA must be changed into DNA before copying. This process is called reverse transcription PCR (rtPCR)
  • Indian Molecular Diagnostics market:
    • It stood at an estimated USD 920 million in FY 2020 and is projected to grow at a CAGR of around 10% until FY 2026
    • Market - By product and services: Reagents & Kits, Instruments, Software & Services
    • Before pandemic, RT-PCR was considered a niche technology; COVID-19 challenged the diagnostics industry to rapidly build their capabilities to a point where we have over 3000+ testing laboratories in India that perform molecular testing
    • With RT PCR, viral amplification, and genome sequencing becoming mainstream, the field of molecular diagnosis is set to be revolutionized
    • In addition, Govt. grants for developing novel products are also fueling the adoption of advanced technologies

(End)

 

Stocks Recommendation List

 

Disclaimer: This is not a recommendation to buy/sell Kilpest India. These notes are related to industry and Kilpest is one of the several manufacturers of such diagnostic kits. The securities quoted are for illustration only and are not recommendatory.

 

Best Regards,

Ekansh Mittal
Research Analyst
Web: https://www.katalystwealth.com/

 

SEBI Research Analyst Registration No. INH100001690
Research Analyst Details
Name: Ekansh Mittal     Email Id: [email protected]    Ph: +91 727 5050062

Details of Associate: Not Applicable

Analyst Certification: The Analyst certify (ies) that the views expressed herein accurately reflect his (their) personal view(s) about the subject security (ies) and issuer(s) and that no part of his (their) compensation was, is or will be directly or indirectly related to the specific recommendation(s) or views contained in this research report.

Disclaimer: http://www.katalystwealth.com (here in referred to as Katalyst Wealth) is the domain owned by Ekansh Mittal. Mr. Ekansh Mittal is the sole proprietor of Mittal Consulting and offers independent equity research services to investors on subscription basis. SEBI (Research Analyst) Regulations 2014, Registration No. INH100001690.

Address - 7, Panch Ratan, 7/128, Swaroop Nagar, Kanpur - 208002, Contact No. - +91-7275050062

Compliance Officer - Mr. Ekansh Mittal, +91-9818866676, ekansh@katalystwealth.com

Grievance Redressal - Mittal Consulting, grievances@katalystwealth.com, +91-9818866676, +91-7275050062

“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.”

The views expressed are based solely on information available publicly and believed to be true. Investors are advised to independently evaluate the market conditions/risks involved before making any investment decision

This report is for the personal information of the authorized recipient and does not construe to be any investment, legal or taxation advice to you. Ekansh Mittal/Mittal Consulting/Katalyst Wealth is not soliciting any action based upon it. This report is not for public distribution and has been furnished to you solely for your information and should not be reproduced or redistributed to any other person in any form. This document is provided for assistance only and is not intended to be and must not alone be taken as the basis for an investment decision. Ekansh Mittal or any of its affiliates or employees shall not be in any way responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report. Neither Ekansh Mittal, nor its employees, agents nor representatives shall be liable for any damages whether direct or indirect, incidental, special or consequential including lost revenue or lost profits that may arise from or in connection with the use of the information. Ekansh Mittal/Mittal Consulting or any of its affiliates or employees do not provide, at any time, any express or implied warranty of any kind, regarding any matter pertaining to this report, including without limitation the implied warranties of merchantability, fitness for a particular purpose, and non-infringement.

The recipients of this report should rely on their own investigations. Ekansh Mittal/Mittal Consulting and/or its affiliates and/or employees may have interests/ positions, financial or otherwise in the securities mentioned in this report. Mittal Consulting has incorporated adequate disclosures in this document. This should, however, not be treated as endorsement of the views expressed in the report.

We submit that no material disciplinary action has been taken on Ekansh Mittal by any regulatory authority impacting Equity Research Analysis.

Disclaimer: You can access it here - LINK

Whether the research analyst or research entity or his associate or his relative has any financial interest in the subject company/companies and the nature of such financial interest – No

Whether the research analyst or research entity or his associates or his relatives have actual/beneficial ownership of 1% or more securities of the subject company (at the end of the month immediately preceding the date of publication of the research report or date of the public appearance) – No

Whether the research analyst or research entity or his associate or his relative has any other material conflict of interest at the time of publication of the research report or at the time of public appearance – No

Whether it or its associates have received any compensation from the subject company in the past twelve months – No

Whether it or its associates have managed or co-managed public offering of securities for the subject company in the past 12 months – No

Whether it or its associates have received any compensation for investment banking or merchant banking or brokerage services from the subject company in the past 12 months – No

Whether it or its associates have received any compensation for products or services other than investment banking or merchant banking or brokerage services from the subject company in the past 12 months – No

Whether the subject company is or was a client during twelve months preceding the date of distribution of the research report and the types of services provided – No

Whether the research analyst has served as an officer, director or employee of the subject company – No

Whether the research analyst or research entity has been engaged in market making activity for the subject company – No