Negen Capital Newsletter – 12 April 2023

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Greetings my dear readers,

FY23 drew to a close recently.

The Negen Opportunistic SIP smallcase has consistently remained quite ahead of the benchmark over the last 24 months.

*Special Situations, the good thing about it is that it does give us very good entry valuations.

Ofcourse, we still need to get the thesis right, there is no magic bullet. But yes, it becomes rewarding if you own cheap stocks and your growth thesis comes good.

*If you wish to know more about Negen smallcase, you can mail us on ria@negencapital.com

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The bets are on Pharma, ladies and gentlemen.

Recently, we learnt that the very influential Murugappa group has been investing aggressively across the Pharma value chain like APIs, Medical Devices and CDMO.

Over the weekend, news has emerged that even the Nirma group has bought a pharma company called Stericon – focusing on the CDMO space.

For an investor, what matters regarding pharma is,

Cheap Valuations (following 2 years of declines) + Investable Companies + Growth Candidates + Defensive.

Scuttlebutt homework – If any of you know anyone from the pharma industry, just ask them how are the sales doing since February?

My channel checks tell me that 10-15% growth in volume is happening.

*And do NOT forget to pass some of that scuttlebutt information to me via email =)

Interesting to see if this sustains.

Negen Opportunistic SIP smallcase now owns 2 direct pharma names with a 14% allocation to the sector.

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Some random but interesting stats for you..

1- Milk Demand in India rose 10% in FY23.

That is pretty serious if you ask me. Milk prices in the same period have risen 12-15%.

Takeaway: India will grow, across the board. As an investor, just buy what you understand, make a portfolio, do regular SIP, Kung-Fu kick the bears.

2- Rents in Bangalore have doubled in the last year.

Ouch.

Source – Anarock.

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As envisaged, April is going quite well for the stock market. The bounce should continue for now.

(Dont troll me if wrong =))

A lot more to share with you soon friends.

Check out Negen Capital smallcases here

Explore Now

Neil Bahal

Founder and CEO, Negen Capital

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