@Pulak I think the overhang due to the mentioned large investor sell off is bringing down the price. This generally happens with all IPOs 2-3 years into the listing. Early PE investors sell their stake.

Another reason for weakness is sector sentiment. NBFCs and all banks are going through this because the banks are going through slow deposit growth phase. I am not sure if you had followed this whole discussion on people moving from term deposits to equities. If banks face this pressure they are going to cut down on their lending to NBFCs. Aptus borrows from banks and the exposure is probably 15-20%. There was a news article as well on this issue, just google it.

Lastly, I can see concerns in unsecured lending (microfinance) as NPAs are slowly rising and RBI issued a circular few weeks back on microfinance. Though this should not apply to Aptus as much because its dominantly a HFC. Their SME financing is also collateralized probably as I remember they mentioned LTV on these loans of 42% (need to check again this).

I think once the market sentiment improves its going to be a clear value buy, aptus at 300 is super cheap. They are growing AUM at 30%.

Disclosure: invested and biased

Ola Electric, founded in 2017 by Bhavish Aggarwal, has rapidly emerged as a leading player in India’s electric vehicle (EV) market. The company primarily focuses on electric two-wheelers but has ambitious plans to expand into electric cars and motorcycles.

Positives:

• Market Leadership: Ola Electric holds a commanding 38% share of the electric two-wheeler (E2W) market in India (as of July’24), making it the top player in this rapidly growing sector.
• Integrated Manufacturing Capabilities: Ola’s Futurefactory in Krishnagiri, Tamil Nadu, is one of the world’s largest and most advanced two-wheeler manufacturing facilities. Coupled with the upcoming Gigafactory for lithium-ion cell production, Ola is poised to gain significant advantages in terms of cost control and supply chain efficiency. Aim to make India a core part of the global energy revolution: Ola Electric | Company News – Business Standard (business-standard.com)
• Product Diversification: Ola is expanding beyond scooters into electric motorcycles and cars, aiming to capture a broader share of the EV market. The strategic interplay with Krutrim, a potential partner in AI and automation, could enhance product innovation.
• Economies of Scale: With its vast manufacturing capabilities and government-backed incentives, Ola is well-positioned to achieve price parity with internal combustion engine (ICE) vehicles, making its offerings more attractive to the mass market.

Negatives:

• High Valuations: The company’s recent IPO valued it at approximately $4.5 billion, a steep valuation given its current financials, including widened losses of ₹1,584.4 crore in FY24.
• Dependence on Subsidies: The EV sector in India still heavily relies on government subsidies under schemes like FAME. Any reduction or withdrawal could adversely affect demand and pricing.

Risks:

• Intensifying Competition: Established players like Hero MotoCorp, TVS and Bajaj Auto are increasingly entering the EV space. Ola may face stiff competition as these companies leverage their extensive dealer networks and customer loyalty.
• Execution Risks: The success of Ola’s ambitious projects, like the Gigafactory, hinges on timely execution and market acceptance of its new product lines. Any delays could impact investor confidence. Slowdown in growth could trigger price correction of the stock.

Overall, the company seems to have the potential to become a major player in Indian Automotive industry in the coming 5-10 years. It’s success depends on how it navigates through it’s challenges.

Disclosure: Invested through a small position.

July data is in.

Seeing a nice spike 80% in lawsikho assignments page

Difference between SA/DIG and Lawsikho has been their blog ipleaders, which is giving lawsikho courses a push.

Lawsikho Referring domains:

SA Referring domains:

DIG referring domains:

Disc: Same as before. Invested. Will reconsider after hearing management’s reasoning for fundraising

What diffrent work they are doing from smaller travel agency and like ola uber service ,is there any diffrent buisness model they have?

This was really engaging and interesting. Thanks for sharing.