#038 – Deals, deals and deals

Is this the return of the prodigal son?

Aditya Puri, a name that is synonymous with Indian banking is now with one of the biggest PE players in the world – The Carlyle group.

So, what about him?

Well, for starters, he was initially inducted on the board of Stelis Biopharma – the biologics arm of Strides Pharma, a company promoted by Arun Kumar.

You can read more about Arun Kumar and why Solara Active Pharma Sciences was a company we at Beta to Alpha have been tracking quite extensively, here.

So what now?

A few weeks back, our team at Alpha Swing had initiated a coverage on PNB Housing Finance for interesting swing trades to look out for in the future weeks. In fact, this was one of our best performing setups published so far in Alpha Swing, a weekly newsletter that is co-run with Harneet.

So Carlyle ended up announcing that they would be going forward with investing a controlling stake in the company by having a preferrential issue of instruments to them and a select group of shareholders.

This obviously did not go well with the other minority shareholders. You can read more about the latest update on this here.

Unlisted company buying a listed company?

Everyone was taken by surprise when this news broke out.

PharmEasy will be buying a controlling stake in Thyrocare – the publicly listed firm operating diagnostic chains.

You can read more about the deal here.

Why has this space become so exciting?

Well, contrary to what people think, the efficiency of scaling up this business in an asset-light model far outweigh the closest sectors by a big margin.

In fact if one were to look at incremental ROCEs of the diagnostics business, it actually outperforms a lot of FMCG companies!

Go green or go home?

The iconic AGM of 2021 just got over.

Yes, I am talking about Reliance Industries.

As the world moves to more serious ESG investing, Reliance is pivoting itself again to stay relevant and woo the ESG world.

They have had a history of relentless execution. Will they deliver again?

My guess here, is a resounding yes!

STOCKROOM SUNDAY – EPISODE 15

This week we pivot to doing a mix of hindi and english in our regular episode.

We speak about the basics of the hospital industry, operating leverage and thoughts on last week’s presentation by Bill Ackman on UMG.


SONG OF THE WEEK

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About the author

Saket Mehrotra

Full-time Fund Manager | Sensex Follower since '09 | Free + Premium insights at Beta to Alpha & Alpha Swing | CA, CS
Senior Associate - Equities at Tusk Investments. Ex - PMI, ITC.

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