SJS definitely looks like a promising stock with strong financials, unmatched number of SKUs and very strong client relationships. One thing I am failing to understand here is what exactly is the reasons why SJS is able to earn this much margins in a field that is easy to enter and has a lot of private and unorganized players as well, leading to high competition among the players.
The number of new tech products that do command high margins are still a small part of the topline and I am not sure if strong client relations help on the margin front. Possibly, the years of experience could have led to operational efficiencies but am not able to verify given the limited info the stock has (recently listed only with no listed peers). Anyone who can throw some light on it?
| Subscribe To Our Free Newsletter |
