Studying this company currently.

What I like:

1. Employee transportation is an area where corporates struggle. There are 100s of players at every office location, but they fail to meet a lot of daily base goals like cabs plying on time
2. Like Peter Lynch said, never ignore what’s going on near you. I dont come back home without spotting a WTi cab in Delhi NCR
3. Their airport counter business has already reached 14cr in a few years. That’s B2C business, although with a slightly higher operational cost and fierce competition

What I don’t like:

1. Competition. Having a company like this is every budding driver’s big dream. I have seen a few going on to start a small 2/3 cab service of their own. And since most big corporates outsource employee transportation, they don’t care who their providers are
2. Their operational costs have a high rentals which they need to pay for using cabs. I understand this is an asset light way, but it certainly eats into margins
3. Talking of margins, the company is at their peak margins. I dont really like companies who can’t expand their margins in 3-5 year horizon

Also, I dont really understand this Dubai move. Will continue to track and see how this goes, but to me this looks like a very naive, shady or gaudy move.

The company is owned by 40% of retailers. I guess most retailers don’t know that there’s no economic benefit.

As the total number of shares increases without any changes in the profit and loss statement or balance sheet, earnings per share, book value per share, and market price per share immediately decrease

which are those stocks which you consider good value?

Arihant Report on Veritas

Veritas_India_Ltd.pdf (320.4 KB)