Totally understandable, me too find it tough to manage a portfolio and do a 9-5 job.
Thanks for the clarifications and your analysis on promoters holding.
I still think their trade receivable profile isn’t promising.
Previous years trade receivables are getting carried forward.
(1-2 year old 2022 amount is 2.74 cr. 2023’s 2-3 year old amount is 2.37 cr)
(similar flow from 6m-1yr to 1yr-2yr …)
Apart from this, today, over 46,000 families are involved in this self-employment generating activity of
spreading health to everyone and more than 80,000 Authorized Distributors who have a presence in
more than 25 states throughout the country
And yet somehow they have 0 doubtful and 0 receivables written off.
They do MLM (46000 families), if they are selling their products to individuals at credit then they should definitely have doubtful receivables. If not, then they shouldn’t have this high receivables.
The third possibility is that most of their business comes from 80k distributors to whom they sell their products at credit.
And on the other hand, Add shop buys 146cr worth stuff from Dada organics (Pandya sir’s Proprietorship) in 2023. Trade payables stands at 35.6cr, entirely payable to Dada organics (pg 110 AR’23). => 110cr cash generated by Dada organics in AR’23.
PS: I don’t want to sound like a conspiracy theorist but err on the side of caution!
The valuations are attractive but the bet is risky.
Conclusion for me has been to stay away from the company until there is clarity on promoter selling, massive stock purchase by non promoters, new CFO and again a super high receivable which sucks away all the cash from the company and gives it to Dada organics.
I hope things get clear soon.
disc – holds tracking position.
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