Let me perfectly clear. The current share price is nuts. total nuts. Current price is definitely not a right entry point. At almost 8.5-9x 2024 revenue it does not make sense
I am riding the gravy train as far as i can.
Coming to the business.
Theoretically next few years will have higher spends and bring down FCF. But hopefully 4-5 years down the line, overall corporate and brand overheads are spread across larger number of stores, higher revenues resulting in better bottomlines. But this is not guaranteed.
DA and store refurbishments are always high with every retailer bar none worldwide. Its like obsolete machinery or replacement capex for any manufacturer.
On Finance:
A large portion of suppressed Net Income is due to IndAS regulations on how lease is treated. Even the debt on books is just majorly lease liability with just 450 crores of financial debt.
Would love your outlook on where i am going wrong on the business aspects of the company.
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