Samhi generates 240 crore from its renovation and rebranding portfolio. However, I am concerned that these activities might disrupt ongoing operations. Could these disruptions result in a significant decrease in revenue of this portfolio until the renovations and rebranding are complete? I am interested in understanding if the rebranding and renovation efforts could temporarily impact this revenue stream.
The major risk, i see as we discussed is two things, one new entrants in the Gujarat PEM scene, which suffers the profitability due to low pricing, however in order for that to play out the player had already put up the plant and have the necessary labours in place already.
Second one is execution risk, over stating and underachieving however I do believe it was 6 years ago in 2018, hopefully management had learned from their mistakes.
Requesting community members who are based out on gujarat to do scuttle-butt for any new entrants in the PEM scene, also we can ask the same to the management themselves in AGM meeting on Sep 21, 2024
But Major Postivies I see is
Competent Management reflects from various metrics and running efficient shop
Sectoral Tailwinds
mainly margin expansion possibility due to PEB is only 28% of their revenue so far so scope for improvement in the bottom line
Risk – reward is quite good
Yes, its something that is already addressed by the management. At least for the next 2 quarters there is the YoY cushion for the comparison.
Absolute margin increases with increased prices even if the %age margin remains the same.
They’ve not had a hit game. Ask people around, esp teens if they’ve heard of and played any Nazara published games.
Ad tech sounds fancy, and it can be but here it can be simplified to sales. It’s just been a bad two years for everyone.
Disclosure: was invested, also consultant to a subsidiary.
Due to monsoons, it is normal that execution is slower. Beating qoq should not be an expectation in any case. Management guided for 500cr quarter and 30% growth for the FY. So if one starts expecting more than that, then it is your own fault.
How will increasing prices of chocolate benefit Lotus? Still can’t understand. Even if they are able to pass on the prices, how does that imply that Lotus will be benefitted?
LT Foods scheduled to meet with Saurabh Mukherjea’s Marcellus Investment.
Expansion in srilanka, new model launch of Rv400, FAME II subsidary of 10k per bike from govt…looks promising…
