Folks (@hardik_shah1 @rahil_sayta ): Thanks for sharing your view generously. Your notes make it clear that the business offers good quality products at different price points [under different names] in an inviting shopping experience for all age groups. This is made possible due to inhouse E2E process. Extremely compelling setup for a customer.However, I am unable to make economic sense as an investor.
What part of the expenses will reduce with time to expand the OPM since every line item seems variable to my mind? Never ending need to keep stores fresh and the leased nature of the stores will ensure that both DA and interest expenses remain heavy and PAT remains lean. ROE/ROCE are yet to be respectable even though leverage[Tot. Assets/Tot. Equity] on the B/S is already 3x. Have you done any thought experiment on how unit economics will evolve with time?
Considering the prevailing valuation that too for an extended period of time, I am surely blind to the key aspects of the business. This is an attempt to remove my blindfolds with the help of folks like you who follow the business closely.
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