@Kuldeepjadeja The following graph from the Co.’s investor presentation will clarify better. Those manufacturers who do not own captive mines end up buying ore at market prices that are substantially higher than the cost of ore extracted from captive mines. This difference in price goes straight to the bottom line of the Co.

Got to speak to a close friend who works in developing anti drone solutions. He had met Zen guys in an army cantonment in the North for a demo. His feedback – Zen and aidintech are importing all the hardware for the drones and only assembling them in India which is what the CEO of Zen also corroborated. He also said that the firmware which goes on these is also imported from Bulgaria/Malaysia and these companies have people who just fiddle with it and do small changes here and there. In essence, these are just assemblers and don’t have any in house IP as such. But in the absence of anyone else in India, they are winning the contracts. It’s more to do with no other options available than anything else as of now. Track 1 from Indian govt allows you to assemble in India and sell it to the Defence. This also explains the lack of core tech talent in these companies.

Disc – Not invested and tracking

But this will have higher premium theta decay, right? What I was thinking is if I pay a small amount for Deep OTM’s (example 5-10 Rs. and Qty 2-3 times of my original position), then in case of v high volatility it can act as hedge and protect the capital against big losses. I mostly prefer weekly option selling because I feel comfortable to take it overnight, due to theta decay but in high volatile movements it’s a curse. I lost my 80% capital in just 3-4 trading sessions due to big gap up-gap down. I buy ITM’s also but only when I am v sure of trend. I am still in learning stage in FNO. So learning and trying different trading strategies.

What I have observed is complete risk can’t be eliminated. If I buy far away ITM than I will have to face loss of premiums due to theta decay, if I buy deep OTM of near expiry than I will lose all premium 90-95% time unless there is v big movement which happens once in a while.

source: The Ken

Why do you think there is no room for margins? They are upwards of 50% contribution margin and marketing as a percentage of revenue or GMV has been consistently coming down.

Operating leverage is now playing out in the company and the recent quarterly results are evidence of that. The company is making cash every quarter. Let me know what am I missing.

I am invested in the counter. Continue to be long Paytm.