This would delay the demerger and subsequent listing of RCCL by around 30-40 days. They were expecting it by end July- mid August now it should be around starting of September to mid September.
Posts tagged Value Pickr
Radhika Jeweltech – Small base Large aspiration (22-05-2024)
There is an interview of Darshit, which will give you information regarding expansion, and more
Shankara Build Pro – Building Materials Organised Retail (22-05-2024)
Marval Capital Ltd. , which is Ben Watsa’s India investment fund has increased stakes in SHANKARA and now owns 350k shares (1.44% of the company). Note: Ben Watsa is the son of Prem Watsa – the Canadian Billionaire investor and owner of Fairfax Financial.
The company looks interesting at these price levels: if it executes similiar to management guidance and successfully de-merges the Retail part of the business, it seems like a decent amount of upside. If they manage to scale across the country, revenues could easily grow 2~3x in the next few years. Margins should also improve with scale, as many expenses (like HQ expenses, Tech systems and eCom website) do not increase with more stores.
However, there are a few risks to monitor:
- Increasing competition from chains like Ikea , @home by Nilkamal
- More shift to online purchases , where Shankara doesn’t have significant market share compared to IndiaMART and others
- More direct purchases from building product OEMs (e.g. Kohler sells in BuildPro stores , but also has their own website : https://shopkohler.in/)
- The management is still guiding toward opening stores across the country , but not sure whether they would be equally successful in places like Mumbai where there are many entrenched players. Even if they are able to enter these cities, the ROCE might not meet management’s mark of 20%+
After going through this whole thread and their regulatory filings, I’m still not clear who are Shankara’s “core” customer group. Have they mentioned anytime in the past, how much of their sales go to different customer segments like individual homeowners, building contractors, sub-distributors, property developers etc.?
Disc: have just started a small tracking position and will monitor the next few quarters to decide on further investments
Thanks,
Sharad
OpenSourceInvestor @ Substack
Archean Chemical – Specialty Chemical Leader (22-05-2024)
I find this company rather interesting, from a long term perspective. As per the DRHP the Rann of Kutch where Archean leases 6,50,000 acres of land is the second lowest cost source of bromine after the Dead Sea. While even long term contracts will be impacted by spot prices of bromine, the cyclicity should be much lower than that of other chemical companies. Further as this company moves into downstream bromine, the internal source of bromine would give a cost advantage over competition. It’s a nice little long term moat – while 3-4 companies have similar leases on smaller parcels in Gujarat there wouldn’t be too many places in the world which have this kind of advantage – it is a somewhat unique advantage as far as speciality chemicals cos go.
IMO renewal of leases is the long term concern otherwise with 20% + ROCE & 24% net margin in 2023-24 which is like a really poor year in the cycle, the company looks like a long term compounder. 2023 ROCE was 38%+. EvenPE of 24 times (again in a downcycle on low earnings) on CMP of 616 looks quite decent.
Combining AI and Equity Market (22-05-2024)
In My Approach it can be done easily, but for other approaches i am not sure, if possible or not
Combining AI and Equity Market (22-05-2024)
I would say, i am kind of unaware of mini GPT but to feel the whole concall the context window should be large enough like Gemini, 2Million tokens. Its very big
Combining AI and Equity Market (22-05-2024)
The Goindia one is great initiative, but i think the performance is miserable, and talking about the drive upload thing, its a great approach but i think if i could successfully transform this into a website i would reduce hassle and it a very big thing in todays world.
Combining AI and Equity Market (22-05-2024)
In the very 1st text you can find, the analysis of HCl Tech Q4 Concall
I Need Help From Web Developers (22-05-2024)
I have just, developed a code to analyze Concalls of any company, but the problem is i have zero knowledge about web developments.
So i need some help, from any web developers, Please reach out to me
Salzer Electronics (22-05-2024)
As far as I am aware management had never mentioned smart meter explicity in recent concalls. They had only said they are open to opportunity in response to the question asked about smart meters in one of the concalls. So this was actually a bit of positive surprise when it was announced.