Hi Hitesh Sir,
Are you still tracking JM Financial ?
Business seems to be undergoing transformation – moving from asset heavy bussiness to asset light bussiness. They mentioned In May’24 that they would close down ARC and wholesale lending. And they will be focusing on AMC/Wealth management side and existing profitable businesses.
Would like to know if you have any recent view considering the planned changes in underlying businesses.
Thanks
I am following this company for some time. Kindly consider in this way.
You are a new employee joining in a MNC. Zaggle will provide a co branded card to you. At initially to encourage you to use that card frequently they will provide cashback and incentive kind of things. Once you regularly use this card they will stop the incentive. As of now company spending big chunk as incentives to increase the program fees revenue. Once this trend started to reverse we may see boost in margins. Hope it helps
Over the past week, I’ve been diving into the logistics sector, exploring various companies including VRL Logistics, Blue Dart, and Delhivery. I found Delhivery particularly intriguing and conducted a detailed analysis on it. I’ve attached a presentation and a Google Sheet with revenue forecasts and valuations for further discussion. Please take a look and share your honest feedback
Hi, from what I understand your question is with respect to the programme fees earned by Zaggle and whether that they bear the CoF
I’m directly quoting the mgmt from this quarter concall on what they said wrt the programme fees
To your second question, what is the program fee and platform fee. Platform fees largely are
software fees that we charge as the SaaS fees. On the program fees, a very large component of
program fees is the interchange that is generated on every card swipe. It also includes some
incentives that we get from banks and networks like Visa, Rupay, Mastercard, etc., for the
volume of spends that we generate.
Since Zaggle is in the business of spend management they help the employer who is issuing the credit card to their employee for various kinds of spends be it food, travel, leisure etc the particular card issued by zaggle would help the employer to track the spends by each employee more intuitively and also catch any bogus transactions which is not the case with a non-zaggle credit card.
Earlier the management has clarified that they earn about 90% of the interchange that is generated on every card swipe.
Now within this programme fees line they have a cashback & incentive line item as explained by mangement in the first screenshot that you have attached. This cashback line item is actually this prepaid component that they talked about earlier. So from what the management has said it is safe to deduce that zaggle bears the cost of these cashbacks and other incentives given to the employee on swiping of their cards, this encourages the card holder to spend more thus generating more programme fees for them.
Now, I don’t think this component is big enough to consider it as a NBFC so to say and since these cashbacks and incentives are I believe seasonal in nature and might as well be reduced in the future once the company has a bigger customer base.
Disc: invested, biased.
Current Challenges for websol:
Opportunities:
However, I recently added more quantity but still I am trying to figure out weather should I hold it for long term? My main worry is competition in this space. Please share your knowledge in this regard. Thank you
Disc: 30% of my portfolio invested in this stock.
if I may ask, from where do you find such gems?
Assuming the question was directed at me, I find stuff to read from these sources:
joincolossus weekly newsletter
Benedict Evans newsletter
https://marginalrevolution.com/?s=assorted+links
The rest from Twitter
I still have a bit of confusion on its Program fees income stream and associated expenses.
So program fees is mainly interchange fees received by network and acquiring bank (as below Aug con call)
Further when they provide the free credit on the credit cards, they have to bear cost of funds (which is part of Cashback and Incentive line item.
So what I understood from this is that even if they bear the cost of funds, they don’t bear the risk of NPAs? is that correct?
Also, do we need to look at this income stream as we look at an NBFC?
Computer Age Management Services Ltd.
3 Years Breakout.
Risk:
■ On days when the market is up, CAMS tends to lag the BSE SENSEX index. On days when the market is down, the stock generally performs in-line with the index.
In the short term, CAMS has shown low correlation (>= -0.1 and < 0.2) with the BSE SENSEX index. The stock has, however, shown average correlation (>= 0.2 and < 0.4) with the market in the long term.
Over the last 90 days, CAMS shares have been more volatile than the overall market. The stock’s daily price fluctuations have exceeded that of all BSE SENSEX index firms.
Disclaimer: Have position in Computer age management services Ltd. No recommendation to buy or sell.
Thank you!
The resolution for splitting the shares at AGM didn’t pass as promoters themselves voted against it. (Why did promoters first brought the resolution, and then voted against it?)
It’s good, in my opinion, as having a smaller value share-price leads to unnecessary volatility.