Hi @kunal_pawaskar, @siddharthshukla n all others,
Sid, I have been a follower of your blog since long. Any reason you have stopped blogging?
Kunal, I went through your analysis about the company on your blog, you have done a good research on the same. Regards to pricing power of the company, I have a different view from what you have.
As one can see, number of units sold has increased at a decent pace of 15.5% over 10 years, PBDIT per unit has shown a dismal growth. This is evident from the slowly falling PBDIT margins over the 10 year long period. I do not think the company has strong pricing power or may be it did have in the past, which is decreasing over the years. Hence, growth has come from increasing the units sold only.
Yes, there is a good chance that the company may increase the unit sold in the future as well however, we need to see whether margins are further going down or remain stable. There are other pros like, good cash flows, dividend payout. If we can get estimated revenue figures for the next two quarters (from a reliable source or management), then predictability would become a little easy. But, this will be medium term play and surely not a long term, IMHO.
Please correct me if I have gone wrong anywhere. Have made calculations in a bit hurry.
Views invited.
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