- Good business but will it scale big? The probability of a significant downside seems low so even if it doesn’t, significant capital erosion shouldn’t be there.
My concerns on scalability are because of the following reasons:
- Licensed brands: Unique but then, I have multiple concerns about scalability and sustainability of growth here. Management doesn’t disclose much about these licenses so further difficult to visualize.
- Homegrown brands: Company has two brands: Four Mine and IRASVA.
a. FM is a made-to-order business. It’s often difficult to scale made-to-order business beyond a point.
b. IRASVA: Good potential. Need to see how management executes over the next few years.
Disclaimer: Although I am invested now, I may exit – if I see better opportunities (or) need cash.
| Subscribe To Our Free Newsletter |
