few inputs here:
Landmark: cash conversion is inexplicably low given 36% (& growing) of Merc business is at nil inventory.
Dream folks: Interesting business but have following concerns:
- Regulatory risk: Merchant discount rates revision by RBI.
- Governance: No CFO till 2021. Further CFO is paid just 30 lakhs annually vs 3 cr+, the company’s CMD draws annually. This highlights the lack of quality talent available to the company.
- no pricing power: No scope of GM% expansion. Through operating leverage, ebitda can improve though.
- Entry barriers: Very low. Nothing proprietary as a platform. Anyone can enter, anytime.
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