Vivekji: I agree with you on the management’s great execution. I am however a great believer in fundamental work – and that encompasses management and business dynamics.

 If I did not like the business they are in or the fundamentals of the business were not strong e.g. getting rapidly commoditized or getting competitive or margins falling because of fundamental reasons I would seriously evaluate selling or exiting the business. i.e. my thinking of investing is more like an owner of a good business. As Mr.Buffett has said when a bad industry meets a good management – the reputation of the industry remains intact. ;)

Getting back to Opto Circuit:  

The fundamentals of the business are great. The stents and catheter business requires huge R&D efforts, accreditations requires years of work and money (think moat). They have smartly acquired companies and smart people giving them a huge competitive edge.  The addressable market for Opto Circuit is reaching multiple of USD billions.

The management has been astute in not overpaying for investments and have demonstrated ability to make their acquisitions work.  This move to acquire manufacturing capacity in India through these company greatly improves time to market, creates capacity, brings in manufacturing competence and will complement their manufacturing capacity/capability of the French catheter company that they should close this month.

As you can see I am a big “fundamental” friend of Opto Circuit.