Going by numbers shown in screener.in, here is what I see:
10 year Compounded Sales Growth: 9 %
10 year Compounded Profit Growth: -1 % (negative)
10 year Stock Price CAGR: 6 %
10 year is a good time to evaluate a business.
Considering Sales and profit numbers, Why are we (including me) hoping this company can turn around ? Or is this pure potential business on the cusp of capturing newer geography or newer segments of business ? Geography-wise yes, I know VGL has plans to get into Japan, India. But what potential if it is not able to perform in US and UK markets ? Newer segments, yes, they are trying to get percentage of non-jewellery business significantly, but again, I doubt if it is anything game changer. I would love to get it wrong, but does not look so at the outset.
Also we keep hearing from Management that their priority is about High margins. Here again we see OPM numbers for last 2 fy as 7% and 9%. Maximum OPM number is seen during FY2021 at 15%.
Again am I reading something different ? What margins Management is referring to ? If the subscription costs are very high, which company cannot control, then what is the point ?
Also, with these sales and profit numbers, how come we see 10 year Return on Equity as 19% ?
| Subscribe To Our Free Newsletter |
