The asset quality trends are not so promising either. There is lot of stress across the board on retail assets as most customers are over leveraged. A cautious stance here might not be unwarranted.

04a708e8-14e7-4e0f-a6de-b5b74e5818ea.pdf (688.7 KB)

Kalpesh and Chanakya both RARE entity . Promoter are experts in turning around bad business .

Per latest valuation report, the NAV is tad above 97 Rs at a WACC of around 10%. Keeping 20% aside for possible aggressive assumptions we still get NAV of somewhere between 75-80. So no reason to sell. If there are no more acquisitions, they will keep returning the money as “return of capital”. And final payment should happen once last asset is handed back.
Disclosure – Holding and hence biased. Entered at a lower price a couple of years back

U.S. sanctions 398 firms across countries including India, accusing them of helping Russia’s war effort

Avantel is NOT part of the sanctioned as far as I checked.

https://www.business-standard.com/external-affairs-defence-security/news/us-sanctions-15-indian-cos-for-supporting-russia-s-military-industrial-base-124110100762_1.html

In the above interview, Deepak Shenoy talks about how qcom companies have “side deals” with some other companies for inventory. Can someone shed some light on this? Here’s what I could gather and correct me if I’m wrong in my understanding:

Zomato acquired Blink Commerce Pvt Ltd (aka Blinkit marketplace) in 2022. However, all the inventory is held on the books of a different company called Hands On Trades Pvt Ltd (HOTPL) which is not owned by Zomato. I think Zomato owns a small minority stake in HOTPL.

I concur that such an arrangement might be asking for regulatory trouble w.r.t. related party transactions and what not. Is this common in the retail industry?

@madhavojha pointed out a few days ago that the KMP of a few dominant vendors on Blinkit have connections with the KMP of Zomato. That might or might not be related to this “side deal” thing, but is equally interesting/concerning.

The revenue recognition from Blinkit in Zomato’s financial statements is only to the tune of take rates on the products sold to the end customers through the Blinkit marketplace. I think it’s similar for Swiggy Instamart too. But revenue recognition for Zepto and BigBasket seems to be money received from the customers for the products sold? Does this mean Zepto and BigBasket do not have such “side deals”?

I’m just trying to understand the supply chain and inventory side of things for Blinkit and retail companies in general.

Disclosure: Holding since before Blinkit was acquired and sold some around 280.