Read its credit rating looks like 60% revenue will be coming from honeywell business, (correct me if my interpretation is wrong),
I was going through the DRHP and found its two listed competitors .
Looks like compuage infocom is facing serious headwinds attaching its credit rating and redington has historically traded at PE around 10-15 so Creative Newtech’s PE at around 35 is maybe because of their changing business model from low margin distribution business to contract manufacturing of honeywell business.
Their brand share seems to have evolved as in 2017 in their RHP majority share was of Sony, Samsung and LG, I see they have brands which are niche which could command better margins IMO.
The promoter is an IIM bangalore Alumni and has good experience but do they have the capability to do contract manufacturing for more brands is my question. Currently reading about the history of the company and trying to understand their MOAT would appreciate your input.
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