New microcap addition to portfolio Stock Name- NGL Fine Chemicals Market Cap - 1100 cr PE ratio - 30 Stock Price - 1800 approx About Business - 1.NGL fine in not a chemicals but a pharma company. 2.Company is engaged primarily in manufacturing of Animal Veterinary API manufacturing. 3.Veterinary APIs are the main product of the company which account for about 90% of its revenues. 4.Company has delivered 100x return from 2010-2020 but it still remains a microcap with 1000 cr market cap. Out of last 10 years sales have grown each year except 2020. 5.Last few years has been challenging for the company with margins dropping significantly. So this is a contrast bet for me. Thesis for buying- 1.Company has 50+ market share in top 5 products . 2.5 products – 50%+ market share. It is a growing position in the next 4 – taking market share from other players. 3.Company has global presence in 45+ countries (~400 customers) with country-wise regulatory approvals viz Asia - 34% Europe - 22% India - 26% ROW - 16% USA - 2%. 4.Achieved an additional certificate of suitability (CEP) for a new project, totaling 3 CEPs. Four Drug Master Files (DMFs) approved for European markets. Actively working on 4 additional DMF/CEP filings expected by the end of FY25. 5.Looking at balance sheet , huge capex in progress since a while (CWIP), as per management guidance new capacity 1st phase is going live this quarter. 6.Company already operating at 95% utilisation and outsourcing. Demand seems to be huge, but supply has also been going up. 7.This quarter onwards some margins expansion is expected, employee cost expected to go down as a mix. 8.Company is already at worst margins historically, only room to improve from here. 9.With both revenue and margins going up, stock can be re-rated to a good extent. 10.Management is one of the most honest and transparent with investors. 11.Expecting good results from the company tomorrow. Disc- Invested. Not a buy/sell reco https://x.com/malani4u/status/1887412488666554774?t=sZP-PZa-aDLs4AlQ27XbUw&s=19