I agree with you but we have to understand that Piccadily not going to make profit on 4360 rupees…
The selling price of Piccadily should have been much lower than the 4360. There is around 30% excise duty on liquor… and there will 10-20% profit for vendors . A 4200 rupees bottle might be having selling price of around 2000 to 2500 rupees for Piccadily… accordingly we may calculate the profit and sale of Piccadily.
Posts in category Value Pickr
Piccadily Agro Industries Ltd (28-05-2024)
BCL Industries – Ethanol Pick (Capacity 3.5x in Next 2 Yrs) (28-05-2024)
While I share your disappointment, I do believe that Kushal was talking about the new harvest from Bihar and he stated that the benefit would accrue in the ‘coming quarters’ (we believed that it would be from Q4, we can say he should have specified that it won’t be in Q4).
We have to keep few things in mind
- Though the call was for Q3, it was being held when half of Q4 had already passed, Kushal had clearly highlighted that the current procurement cost was Rs 24.3, which is a jump of more than 10-15% as generally the procurement cost was Rs 21-22. That quantum of jump is by no means small. The price hike of Ethanol was around 9% while the cost increase was 10-15%.
[Edit: I think I understand why some investors consider that the cost hike was small and margins should have still been better as Ethanol prices increased by Rs. 5.9 while maize price increased by ‘just’ Rs 2.5-3.5. We need to think in % terms rather than absolutes, specially when 1 Kg maize doesn’t produce 1 ltr of Ethanol] - Compare BCL performance with its peer Gulshan Poly (in distillery segment), BCL has done better in terms of margins consistently. Even their margins were subdued because of raw material pressure.
- Agree, other than additional revenue from new 100KLPD coming online this quarter, there are no other ‘triggers’, but if the current price is below its fair price, that could itself act as trigger and once (if/when) some bigger players start entering and the price starts showing momentum, retail will also start piling on which they are now leaving for a broken company/stock.
Disclosure: Invested since 3-4 yrs and pyramiding. Not a buy/sell reco. Just sharing my thoughts here.
Ganesh Housing- A Potential Play for Housing for All theme? (28-05-2024)
ongoing projects are only 1.7 msf as compared to completed projects of 22.5 msf Will it impact sales in coming quarters? if someone can clarify.
Zomato – Should you order? (28-05-2024)
The economics of the franchisee of quick commerce dark stores. Anyone can confirm? It does not look very lucrative. As per the tweet:
80 Lakhs is required to get a Dark Store franchise of a Q-Commerce company
All Q-commerce companies are running asset lite model by selling franchise of dark stores. Its difficult to reach a conclusion of when would a franchise owner gets its investment back & make money on the investment with so much competition to sell under 10-15 minutes
Mandates to get a Dark Store
- Dark Store Franchise Fee: 8 Lakhs (One time)
- Deposit 72 Lakhs for min 3000 Sq Feet warehouse
- Minimum 20 Employee to be hired & their salary is on the dark store owner
- Mandatory to prepare the order in less than 2 minutes
- Allowed only 1500 orders per day, once exceeded a new dark store to be opened & split the orders
- Avg commission per order given is 2.5-3%
- All goods & expenses (Rent + Electricity + Cold Storages ) on the Q-Commerce
Original tweet below
https://x.com/priteshlakhani/status/1795072451270906091
Indiabulls Housing – A compounder from here? (28-05-2024)
As per Screener:
Reserve:19679
Equity : 113
No of Shares: 73.9
Bookvalue:19679 + 113/73.9=267.8
I do it this way: Experts can comment.
SmallCap Hunter : Trying to find the dark horses with triggers (28-05-2024)
Graviton is a prop desk, they are quant traders and you’ll see their trades coming up in many many stocks. It’s nothing unusual, it’s what they do - they trade large quantities at tight spreads. I presume it’s algo trading.
Hariom Pipes Ltd: A Capex Play! (28-05-2024)
what will be the net impact ??
P.E. Analytics Ltd (PROPEQUITY) – Another Data Analytics Platform for Real Estate Players (28-05-2024)
Hi. I have noted your feedback. I like to use stories to explain things better. It’s a mix of facts and creative writing to keep it interesting. Happy to chat more about it!
RACL Geartech Limited (28-05-2024)
Racl geartech is down 10%. Margins seems to be the issue. Anyone have any insights?