Hi Charanjeev, this is a very useful analysis. I also checked with few dealers, their brand has a strong recall in India (30-35% of their revenue).

But i completely agree that their employee costs look too low, wondering if this increases, it can take away 2-3% of the margins they make.

Did you get any reply from the management just wanted to check.

Hi Sandeep.

Thanks for responding.

A had sold my PF at higher level around May. Now looking to start deploying cash.

At the sake of sounding stupid I’m looking to make 20-25% CAGR

Gujarat expansion plan

There has been instances of promoter clarifying about stake sell recently. The reason mentioned is ‘Diversification’. I fail to understand why the promoter need to diversify if the company is growing so nicely and the goal is to reach 100CR quarterly run rate in next couple of years.

Also, does anyone know how to track the % stake sold by promoter. I could not find this details in regular company filings on screener.

Also while studying about management, I noticed regarding acquistion of US subsidiary - Ksolves LLC - at only 7.8Lac (which was the profit earned by that company previous year). This clearly shows promoter are minority shareholder friendly.

Also, debt free, asset light, regularly sharing dividends with shareholders, but at the same time, promoter is selling and reducing their stake. Has anyone thought about contradictory evidences?

Also, I could not find much details about one of the promoter company Ksolves Technology Private Limited. Has anyone checked about the same? Is it still in existence? and its revenue and profit history and promoter stake in it? and Related party transactions?

Studying currently. No position as of now.

Thanks,
Pankit

Hi Hiteshji

Would like to know your views about Consumer Durables (Appliances specific) sector (eg. companies like Voltas, Whirlpool, Hitachi AC etc.) in current context as well as in context of long term core portfolio picks.

I have observed that Consumer discretionary as a sector has created immense wealth because of factors such as growing per capita income, premiumization, niches etc. However same is not true for Consumer durables (appliances) over last decade or so…I see that in case of Consumer Discretionary, even though there maybe competition but still clear leaders with pricing powers emerge - such as Page or Titan for eg. However in case of appliances, the intense competition leads to price erosion with no clear leaders visible (Voltas has a leading market share by volume in retail AC segment but still with negligible pricing power) and neither ability/multiple levers to manage input costs (as evident in current context of high inflation)…

In this context, are such appliances companies good core portfolio bets? Are times like current (perfect inflation, input cost & parts availability storm) a great time to add these? Have appliances companies created wealth globally? - Whirlpool is a US mammoth but was in trouble inspite of the brand history etc. in US. Does it make sense to completely ignore this sector because of poor economics and concentrate on other consumer focus sectors (if one wants to be in Consumer facing sectors) which have better levers to make use of their market leadership…or this sector also has merit and deserves a place in core portfolio?
Thanks!