People have listed various problems with this company for reasons of not investing in it but my own reasons are: Their retail coffee chain would find it hard to grow.
I’ve seen CCD outlets besides highways where few people come, mostly in the more prosperous parts of the country. In cities like Pune, they are everywhere and hence few areas where they can set-up their outlets.
The only places left for them to have outlets are :
1. Small towns in west & south.
2. In east of country viz. UP, Bihar, WB etc.
For the first there is no male-female meetup culture, the primary reason for people to use such places. As such I don’t see them setting up profitable franchisees here.
For the second, most middle class people don’t have enough money to spend on CCD. And this would be the case for some time to come. Then there is the crime and the society in UP, Bihar.
If they can’t increase their number of outlets, that doesn’t mean their shares are not investible, just that they don’t deserve the premium they’re asking.
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