… bottom line of 19.79% is growing faster than top line growth of 15.03% might suggest e2e is beginning to see scale-advantages work in their favour. (in my prior experience in this business … ) This often appears in items like per-rack-datacenter-leasing-cost, deployment costs and other operating costs increasing linearly even if there is an exponential increase in number of racks deployed. Given the stack is fully built and model perfected, I fully expect this gap to increase in the future as they get more and more of this.

PS: Long term investor in E2E.

Got it. Wish you the best Wasn’t tracking this much. Know that they’ve done a lot of JVs over the last few years and it’s a strategy that’s very very different from what they used to have back in 2015 when their focus was on building on the strength of their core brands and a sustainable business.

Haven’t followed them much post 2022. But knowing a little their brands in other spaces like Simon Carter and American Eagle haven’t done well. Ethnic was a big white space they identified but it’ll be interesting to see if the thesis as pointed by you actually plays out.

Raymond will also go aggressive and Manyavar also won’t sit back and then Reliance has its own muscle and Arvind might be eyeing a revival. The retail space will only get hotter

Let’s see if they are able to build something that’s value accretive to shareholders as well. As a customer I’m happy since a lot of brands they’ll be expanding with offline. But they have missed quite a golden period eg like how Trent scaled up Zudio as a small example.

P.S. Have seen the business very closely from 2015-2021 as I started my career with ABFRL and hence can be biased with my observation and not tracking the business recently

Update

Switched out completely from Thyrocare (889 price point, buy avg 535), gave me an IRR of 31%. Added whole proceeds to Manappuram and a bit more as well yesterday and today at around 139-147 price points

Believe it to be a good value buy considering gold price trajectory and trading valuations at 1.1 PB. High probability it might go down towards 0.9 or 0.8 PB but who knows. Going to hold through the storm. Manappuram is now around 13% of PF at avg buy price of 130 or so