What we saw before the market did.

The thesis

• A unique insurance product business, crafted from India.
• Industry tailwinds and an attractive valuation made it a formidable idea.
• Hived off and listed separately from its parent, Mastek — preparation for a sale.
• A partnership with IBM and solid execution on a $100 mn MetLife contract were key testimonials to the thesis.
• Clear signs that M&A would be the catalyst.
• Board composition and organisation design — no second generation — supported the thesis for a sale.

The exit

Acquired by Thoma Bravo on 8 August 2020 at a market capitalisation of $594 mn against an entry of $150 mn. The stock opened 69% up on the deal. OysterRock exited fully in India above Rs 980.

The thesis

• Huge operating leverage in a professional setup.
• Business fundamentals improving across API, CRAMs and formulations.
• The key ARV business — roughly two-thirds of revenue — showing recovery.
• The API business firing on all its key legs: ARV, HepC and Onco.
• Seeds sown for the formulations business.

Long-term compounder

The market is rediscovering the strengths of this business in formulations and CRAMs, while the ARV annuity business reverts to its mean. Market capitalisation of $2.5 bn — up 4.5× over 18 months — with profit after tax of $150 mn and a strong growth engine in place.

The thesis

• Import substitution of medical consumables in India.
• A high-margin domestic branded business gaining traction.
• The branded business in Europe and the US taking off.
• Growth achieved without equity dilution until 2021.

Why we sized it up

• Huge runway for growth as exports move from white label to branded.
• The domestic business progressively gaining acceptance.
• A higher bet size was warranted at the time of investment.
• Local manufacturing and the China+1 strategy aid the business.

The thesis

• Over 1,000 custom coffee blends, with deep, long-standing customer relationships.
• Cost advantages and global scale — capacity roughly doubling by FY25.
• Global sourcing, and growing investment in its own brands.

The transition

• B2B to B2C — a step up in margin.
• Bulk to value-added — new packaging and geographies driving a better mix.
• Coffee to FMCG — extending into adjacencies, from QSR to plant-based foods.

An attractive valuation — under 35× trailing — for a sustainable, high-growth, emerging consumer business.