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Posts in category Value Pickr

Edelweiss Financial Services (07-08-2022)

The performance IMO, is moderate
The sector is largely dependant on growth (Indian +Global) slowing growth is not something which can lead to out performance. In this environment wealth and ARC are the only ones which will outperform.
ARC is very backended and Lumpy business. Investments are frontended. Insurance is cut throat, it’s stable business requires scale to be profitable. Slow companies can take upto 10 yrs to be profitable.
I am hopeful ARC business shows gd returns from this year.

Disclosure : Invested

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Nykaa – The Make Up Company (07-08-2022)

I don’t have any detailed idea about the products or the product categories Nykaa in present in, so is the market fragmented and there are lot of generic and local brands that Nykaa has to compete with in order to increase market share?

Are the prices of Nykaa’s products affordable by all of their target customers so that it has a pan India presence? Or Nykaa is more of an urban story, and targeting a specific set of customers, providing them with premium quality with wide varieties and these customers will not shift to other players?

Dmart is not a margin story, it is a sales story, expanding presence story, strengthening its presence story, and capturing market story, with a successful business model. Does Nykaa belong to this category?

To me Nykaa is a discretionary spend, but, if sales are increasing and if one believes the management and also sees their products everywhere in physical stores and/or online, then may be it is not a discretionary spend and part of lifestyle.

Not invested, obviously, but interested.

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Kalpesh’s Portfolio (07-08-2022)

Sir, If you may explain in some more details.

Your original post has a mention of a & b possibilities “Consider two scenarios”.

However, the quoted text has a mention of b scenario alone.

Isn’t the paper industry in uptrend for India, with issues reported abroad?

Any views on Century Textiles & Industries, West Coast Paper Mills, in comparison to Satia Ind?

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Nykaa – The Make Up Company (07-08-2022)

These distributors would make 3% margins in selling to retailers while Nykaa would sell directly to consumers in inventory model…so margins could be different…

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Sandur Manganese (07-08-2022)

Just like an IPO, online through ASBA supported by most bank websites

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Nykaa – The Make Up Company (07-08-2022)

Yes. All pan-national brands. As sole distributors if local guys have 3% margin, then Nykaa’s margins won’t be a whole lot different, in the inventory model.

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Nykaa – The Make Up Company (07-08-2022)

Certainly this is not IT kind of business where there is no proper path to profitability yet. To me this is a new age retail business. The new age dynamic team working on various possibilities and disruptions in retail.

Regarding margins, make up might have less because it is inventory based model. I guess in fashion, they should have more eventually. Also they are expanding their own private label brands in both make up & fashion so that piece should also add up eventually. Regarding their B2B business - where they would act as distributors, margins maybe lesser…however that part of business would give them strong hold on the entire make up ecosystem…

Having said that, i am not sure of what ideal margins are in Make up, fashion & distribution of make up business. Would be prudent to compare with Fashion margin of Trent and maybe make up margins of established global players like Sephora

Also, the distributors you checked with, are they associated with any brands? I would think Nykaa might have different margins for different brands they sell and also there may not be distributors in middle for some now or eventually as they themselves would act as one and directly buy from brands…so as compared to any other player in this business they should have best margins…

Disc. Above thoughts only for academic purposes. I can be completely wrong in all my asessments

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Pix Transmission – low profile smallcap company (07-08-2022)

pix other income

hi VP members
new to investing and to VP
thanks all the people in the thread for wonderful research

just one thing i noticed from recent quarter results is that if you look closely at q1 22 and q1 23 results although bottom line appears to have increased but if we deduct other income from bottomline in both we get a degrowth in income of 20% YOY

please feel free to correct me if i missed something here

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Praj Industries (07-08-2022)

A general question since I see margin discussed in every thread in VP.

Let’s say there are two consistent businesses.

  1. Grows profit at 25% at margin of 10%.
  2. Grows profit at 10% with margin of 20%.

I would take 1 hands down. It is higher risk but I would exit if profit growth falls. But would never take 2. But it seems I am missing something.

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Vinati Organics (07-08-2022)

Q1FY23

  1. 31 % yoy growth in revenue.
  2. Blip in gross margin .
  3. EBITA margin declined qoq stable yoy.
    https://www.bseindia.com/xml-data/corpfiling/AttachLive/4037bcde-00f7-41b3-a4cf-071cca5b75e5.pdf
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