Since the threat has been not active since long, I thought of putting up some summarised notes of my here, much of it derived from the links and discussions shared above and the investor ppts of HSCL.

Products

Products Analysis

Peer Comparison

Management:

• Promoter increased stake by 5% this year.
• MD says will continue the earnings momentum.

Shareholding Trends:

• Mutual Funds increased stake by 29% in the month of August.
• Currently, retail holding is close to 42% (which is very high).

Thats it. I am looking forward to sharing more as I keep tracking the stock. I remain invested in the stock since a month or two at 490 Levels. Looking forward also to get more insights from fellow folks who are tracking it!

Both Titan and Kalyan have shared their business updates. I have compared Tanishq Jewellery(Tanishq, Mia and Caratlane) with Kalyan(Kalyan, Candere)

Tanishq & Kalyan: Q2FY25 Business Highlights

Tanishq Jewellery (Titan Company Limited) and Kalyan Jewellers both reported strong Q2FY25 results. Let’s examine their performance, focusing on revenue growth and expansion strategies.

Revenue Growth Sparkles

Both companies thrived in Q2FY25, capitalizing on increased consumer spending after India reduced the custom duty on gold imports. Here’s a closer look:

• Kalyan Jewellers achieved higher overall revenue and same-store-sales growth than Tanishq Jewellery.
• The reduction in gold import duty significantly boosted demand for both companies, highlighting the sensitivity of the jewellery market to gold pricing.

Expanding their Footprint

Both companies strategically expanded their store networks in Q2FY25, primarily in India:

• Titan’s multi-brand strategy allows them to capture a wider customer base.
• Kalyan’s FOCO model could enable faster expansion with potentially lower capital investment.

Digital Dominance

Both companies experienced considerable growth in their digital first platforms:

• CaratLane (Titan): Recorded c. 28% YoY growth.
• Candere (Kalyan): Achieved approximately 30% YoY growth.

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Conclusion:

This quarter has been good for both the companies. With festive season coming Q3 is generally best quarter for jewellery market.

Hello,

I am new to this website and am writing to start a discussion on SBFC Finance.

Started by bankers who have worked across many private sector banks (Kotak, HDFC etc.) the company seems to be tapping into a need in India – Finance to manage cash flows/ start a business. (Ticket size for loans: 7-20Lakhs)

This seems very stable as the loan is to facilitate business cash flows and backed by the lendees home as a collateral.

Moreover, the company has a wide spread distribution network and is currently focussing on sweating the current assets to increase loans/ center. (could possibly lead to increased RoE over the next few years).

In comparison to Five start business, SBFC is targeting slightly higher ticket size of loans. (Possibly more stable and secure target market).

There seems to be a long runway for this company considering that in India : rural, semi-urban areas have self-employed business, self-employed agriculture as a great proportion of the sources of income. Moreover, consistent NPAs (low) are also promising (Loans are backed by the lendees home as collateral; Wife/husband is a co-signee).

My question is regarding the very volatile nature of this stock in the last couple of months. Any ideas as to what are others seeing which we may be missing? Why are bulls and bears having a n intense go at this one?

Thank you

I actually have a very basic question wrt oversupply.

1. Total import substitution demand is 175 kTPA and say, the market will grow by 7-8% and the demand will reach 200 kT by 2026
2. Now, the new facilities coming online are 300kTPA – 100k (Styrenex), 80k (Supreme), 125k (Bhansali eng). Basically, a 100k oversupply
3. Another factor is threat of imports. Custom duty on ABS is just 6-6.5% and there’re low cost producers in nearby countries. Also, China’s demand is 5 mil T (14x), meaning even a small drop in demand there could lead to dumping in India. The situation is too predicated on things going exactly right for sales improvement.

Also, the company’s margins significantly higher Styrenix since FY24, which wasn’t the case in FY23. If someone can shed some light on this.