Raia Drogasil SA

“Raia Drogasil is Brazil's dominant pharmacy retailer with a decade of disciplined execution, structurally negative working capital, and 5-7 years of high-return organic store-rollout runway in an underpenetrated market — but at 17.9x forward earnings the implied 10-year BRL return of 2-3x is merely adequate, the margin of safety is thin, and BRL depreciation represents a genuine (if non-permanent) risk to USD-denominated investors; the right move is to track for a pullback toward 15x forward before committing capital.”