You may be right, but I can’t imagine a Motilal Oswal share opening at below ₹13.75. Housing Finance is flavour of the day too. Let me confess that I have not deep dived into it.

Update for entry on 16th Sept 2024 (lookback dates: 15/09/2023 and 15/03/2024)

50EMA (24276) > 200EMA (21217); hence, we can continue without any change.

Based on ranking:

1. PGEL
2. GRAVITA
3. IIFLSEC
4. CHOICEIN
5. WOCKPHARMA
6. LTFOODS
7. PURVA
8. ANANTRAJ
9. TECHNOE
10. NEULANDLAB
11. NAVA
12. STAR
13. TVSHLTD
14. NETWEB
15. WABAG
16. TIMETECHNO
17. BASF
18. SHARDAMOTR
19. SHILPAMED
20. VMART
21. KESORAMIND
22. IFCI
23. MARKSANS
24. SENCO
25. KIRLOSENG

Based on A → Z for easy tracking:

• ANANTRAJ
• BASF
• CHOICEIN
• GRAVITA
• IFCI
• IIFLSEC
• KESORAMIND*
• KIRLOSENG
• LTFOODS
• MARKSANS*
• NAVA
• NETWEB
• NEULANDLAB
• PGEL
• PURVA
• SENCO
• SHARDAMOTR
• SHILPAMED*
• STAR
• TECHNOE
• TIMETECHNO
• TVSHLTD
• VMART
• WABAG
• WOCKPHARMA

Exits:
JYOTICNC, SUDARSCHEM and TIDEWATER make an exit.

Entries:
KESORAMIND, MARKSANS and SHILPAMED make an entry.

I am not the person to give you a valid answer, as I don’t have a particular approach, I have a broad approach. Although, there are a few relevant posts in the forum, old but will give you some idea. You can search for more.

You can also check this thread, you will find many answers for your questions, even for the ones you have not asked.

And, don’t tag admin for your queries. There is a thread for basic and regular questions that we have, you can post your questions here.

I noticed missing information on Screener.in, as the 2022-2023 data is unavailable. So, based on the current data from 2024 and up to 2021:

• The P/E ratio is very high.
• Their fixed assets are almost nil.
• D/E ratio stands at ₹27 crore/₹26 crore.
• There is some profitability in 2024, with a profit of ₹9 crore.
• However, all of their profit is being used to cover interest payments.
• Cash flow from operating activities is negligible.

### Company Overview:

• Fratelli Vineyards Limited, previously Tinna Trade Limited, is one of India’s leading wine makers and the second-largest Indian wine business.
• The company was founded in 2007 in Akluj, Maharashtra, by seven brothers from three families and two countries.
• Focused on producing high-quality wines and vineyard tourism, with a commitment to quality farming.

### Business Transition:

• Transitioning from a trading business to a singular focus on wine production and vineyard tourism.
• Trading activities contributed approximately ₹100 crore in revenue during Q1 FY25 but will cease by Q3 FY25.

### Strategic Performance:

• The company emphasizes the importance of the vineyard in wine production, stating, “good wine is made in the vineyards and not in the cellar.”
• Complete ownership of the grape-to-bottle value chain, which is a unique model in India.
• Strong relationships in the HoReCa (Hotel/Restaurant/Café) segment with 22,000 touch points across India.

### Financial Highlights:

• Q1 FY25 revenues were approximately ₹45 crore, slightly down from ₹46 crore in the same quarter last year due to election-related permit challenges.
• Revenue guidance for FY25 remains above 15%.
• EBITDA margins have improved, with a current margin of ~13.5%, expected to continue an upward trend.

### Growth Strategy:

• Focus on premium and luxury segments, with a diversified portfolio ranging from luxury wines priced above ₹2,000 to value segment wines priced between ₹250-₹550.
• Plans to introduce new brands and renovate existing ones, particularly in the Super Premium and Luxury categories.
• Expansion of vineyard acreage and ramping up winery operations to support growth in premium wine production.

### Vineyard Tourism:

• Investing in a 40-key multi-use property on 170 acres at Akluj to enhance brand visibility and profitability through vineyard tourism.
• Expected occupancy rates of 40% in the first year, increasing to 60-70% in subsequent years.
• Anticipated construction costs for the hospitality project around ₹50 crore.

### Market Position and Competition:

• Currently holds a 30% market share in the Indian wine industry.
• Competing effectively against established brands like Sula and Grover Zampa by focusing on quality and brand development.
• Unique selling proposition includes the cultivation of Fratelli-owned grape clones better suited for Indian conditions.

### Challenges and Outlook:

• Facing challenges due to natural calamities impacting crop yields; mitigating risks by acquiring land for diversified farming.
• Management remains optimistic about growth prospects, citing a robust operating model and strategic investments.
• The wine market in India is expected to grow at about 15%, with Fratelli aiming for a higher growth rate of 25% CAGR based on past performance.

### Innovations and New Products:

• Recently launched Pinot Noir and renovated the Master Selection range.
• Plans for further innovations and product launches to cater to diverse consumer segments.

### Margin Guidance:

• Currently experiencing EBITDA margins of 10%-12%, with an expectation of gradual improvement.
• Focused on maintaining a steady stream of premium brands to sustain leadership in the market.

### Capex Plans:

• Anticipating a capital expenditure of approximately ₹30 crore for capacity expansion and brand building.
• Additional ₹5 crore planned for expanding vineyard acreage and ₹45-50 crore for the hospitality project.

### Export Markets:

• Currently, exports contribute less than 3% to overall revenue, but there is a plan for a 20% increase in exports this year.
• Focus remains primarily on building the domestic market, with exports to about 10 countries.

### Conclusion:

• Fratelli Vineyards is positioned for growth with a strong focus on premiumization, vineyard tourism, and innovation in product offerings. Management is optimistic about the future, backed by a solid growth strategy and market positioning.

Disc: Invested, bullish and therefore biased