At first glance, it is difficult to see why any serious investor would be interested in Palred Technologies. It is an ultra micro-cap (Rs. 91 crore) and runs a website called “latestone.com” where one can buy small ticket accessories like pen drives, mobile chargers, power banks, mobile case covers etc. These are low margin items and the competition is intense and cut-throat.
However, the surprising aspect is that a number of savvy investors are sitting pretty in it already. Ashish Dhawan of ChrysCapital fame leads the roster of savvy investors with a holding of 13,42,641 shares as of 31st March 2015. He has increased his holding in the recent past.
Some other well known investors are Six Rivers Group (10,84,742 shares), Parle Biscuits (7,00,000 shares), Amol Chauhan (7,45,000 shares), Passage to India Master Fund (6,38,000 shares) etc.
Ashish Chugh of Hidden Gems sent a cryptic tweet yesterday hinting that he had discovered a new stock.
At time when e-comm startups asking astronomical valuations,a listed e-com startup with "Proven"promoter available for free-0 debt-MCap=Cash
— Ashish Chugh (@hiddengemsindia) May 26, 2015
(At time when e-comm startups asking astronomical valuations,a listed e-com startup with “Proven”promoter available for free-0 debt-MCap=Cash)
Speculation was rife amongst Ashish Chugh’s followers that the reference is to Palred Technologies because Palred appears to meet the parameters referred.
While Ashish Chugh hinted (without confirming) that he is indeed referring to Palred, Porinju Veliyath rushed to the counter today and scooped up a chunk of 2,00,000 shares at Rs. 23.55 each. This sent the stock surging up nearly 10%.
The best way to understand Palred Technologies’ business model is to see the videos of Ameen Khwaja and Srikanth Reddy, Palred’s CEO and Chairman respectively.
Ameen Khwaja stated that the company is following the “inventory” model and not the “market place” model because the former offers higher margins. (It also bears the risk of an inventory loss). He also claimed that the company is seeking to achieve a turnover of Rs. 500 crore in the next three years.
Srikanth Reddy made it clear that he is inspired by Amazon Inc, the e-com behemoth with a market capitalisation of $200 Billion. He, however, emphasized that while Amazon had not made a rupee of profit in its fourteen years of existence, Palred would break the trend and churn out mega profits from the beginning.
How far these aspirations come true will be interesting to watch.
Dear Arjun,
Are you ‘the PORINJU?’ – Nowadays all your articles seem marketing him. Still I love your presentation –adding a bit of Ashish Chugh,etc…(those people never imagined of). Kind regards..
Arjun
Its high time you change the blog to PORINJU.in.
Amazon is a more technology company rather than a e-Com company. Srikanth Reddy talking about Amazon’s business model and its profits is a hilarious and a big joke. First he should read Amazon’s Annual Report before he utters a word.
Never heard of LatestOne.com and the fundamental business model of holding Inventory vs Market Place is a joke. How can a eCom company scale with Inventory only model.
Please do not invest in this Hyderabad based Con company Palred Technologies (Formerly known as Foursoft IT Solutions).
I know in few days time there will be a follow up article on this saying PORINJU has raked up millions on Palred, but it is going to be pure rigging.
Regards
Bhs
I agree, it is hard for anybody to match Amazon’s customer service both in US and India, I am saying it from personal experience
There is a saying in hindi “chaar din ki chandni phir andheri raat” meaning its just a four day glory and then endless doom. My understanding says Porinju and likes get into a stock publicize their work, invite small time investors, rig the price and exit.
In every bull run thieves are renamed and projected as “TRUSTED PROMOTERS” and this is whats happening here.
Simple mantra, where the basic fundamentals are not right, don’t invest, PERIOD.
Now onwards will stop following this site, as this site has now become only a temptor and nothing else.
Suspicious. I agree with the previous commentator whose name as spelled is “Bhs”.
Keep away form such companies.
I think, it is difficult to make money in ecom except they take huge amount from investor. Secondly this latest one i dont think anyone knows and sell very ultra low NPM things like cable, case etc. if you look just sale also it has been flat or – from last couple of year.
Now how future will shape out need to see but his warehouse model is somehow not clear to me. this is not easy to store electronics items as price always dip.
Regarding Ashish dhawan he is one of the great investor but please can you crosscheck how much his portfolio is in this one. it is i think around 3 cr which is less than .5 ( i may not be be sure so pls check) for his entire holding.
Arjun follows all the investor and this is one of great blog to read about what is happening. please keep it up.
Retail e-com is hot now a day and no biggie is listed in India . Lot of investor missed the bus of Intrasoft so may get tempted to enter in any newly discovered e-com business. So I request please do all due diligence before entering in it. Intrasoft has very less public float available since promoter has 59.40% and Intel Inc has around 12%. Intrasoft can’t become another Amazon or FlipKart but it looks standing out among the lot of Indian listed player because it’s pure e-com sales from 10 odd cr in FY11 to reached to 323 Cr in FY15. We got lot of clarity on Intrasoft after attending conference call . Even their press release with FAQ and presentation was too good . It has good growth prospect , But , it no more available cheap . Following are take away from conference call by one of my online friend (Friendly Voice) with my additional comments .
-The management is Visionary, extremely dynamic and focussed
– Their greeting subsidiary 123greeting.com has high margins, and That management has no hesitation to pay dividends
-Company`s business model is predominantly Shop in Shop, called Market places
-They are going to join 2-3 additional market places this year
-Guidance: To my specific question whether current year too will have 130% growth like last year, they confirmed.
-Capturing market size is the main focus, rather than bottom line. They dont sell anything in loss.
-Operations have started at Alibaba and Canada . Next target would be UK not India .
-Though this is not right time for Nasdaq listing, but in due course, if needed, it will be considered
-Indian operations not in their current plans
-Their nearest competitor is Wayfair, a Nasdaq listed firm
I think all this ‘value’ investing has come down to one thing: information.
These days we are so much engulfed with information around us that everybody starts buying the very next day and will update their profile as value investor. I also think this undue volatility on daily basis is because of all the information available easily. Punters are active as never before. so called ‘value’ investors like us keep churning their portfolio on basis of next information available. i strongly feel market would be a better place if internet/tvs are cut off for a couple of months. What we need is sanity and patience. Read any interview of any damn big head investor, ask him how he did it, you will read/hear one word PATIENCE.
There is one more listed ecommerce co called JLA Infraville which came with an IPO at 10 Rs a few months back. It’s listed at BSE around 30 Rs.any views on that ?
Dear Saharanpuri,
I clicked on http://www.infraville.com/ and was AMAZED…WFT??? These guys you’ve mentioned seem to be beating AMAZON, FLIPKART, SNAPDEAL, JABONG…. ALL put together. Just click on any category/stuff that’s listed out there and EVERYTHING IS “OUT OF STOCK”
Nobody can beat them in sales.
LMAO!!
lol….there is e-com and there is e-con. and there is a fine line between them.
Palred has given 60% returns in two weeks. Great pick!!