Attended the call today. Few of the pointers and honestly a mixed takeaway:
Most of the questions were asked about proposed GST structure and impact on sale.
Next set of questions primarily focused on margins taking a hit and they were aptly answered that due to new store openings, forex fluctuations, they had taken a hit.
Few questions that I would’ve loved to ask but will write to them anyways –
The business growth in Metro vs non Metro and how’s it looking.
CPO business growth– there’s not a huge delta between the growth in CPO and overall growth. A lot of exuberance was there about it a year back and now in the garb of expansion, it is not getting the same importance atleast in calls.
The repeat business and rising ASPs– If it’s fair to assume that their customer segment is now stabilised and we can see stable ASP growth or will it start to plateau now. The ASPs have grown upwards of 2 lakhs now.
Confused about– The management stated that they’ll now do half yearly calls. Now Pranav Saboo has been spearheading the last few calls and it’s okay that they want to focus on long term strategy but still don’t understand why this call has been taken all of a sudden when next 2 years are all about store expansion and lot of new initiatives are being taken.
All in all, still very bullish on the theme but I invested here initially because of Yashovardhan Saboo and while the leadership transition has possibly happened but seems like his focus is more towards KDDL.Will see now how business progresses. The valuation is anyways steep.
Disclaimer- A very big holding and have added in last few weeks as well post GST news when the stock corrected.
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