Hi,

Will you plz share the rational for axiscade?

Thanks

I definitely don’t like the promoter stake offloading. Though this transaction seems like strong hand to strong hand. And then we are reminded of the adage that selling reasons can be many. I invested in this co expecting 30% cagr and the thesis continues to hold. But I think I would want to track it more closely now. Do not see margin of safety in the co now.

@jeewangarg you should go through current quarter con call this question is clarified there.

Cyient Limited Q3 FY24 Earnings Call | Cyient Limited 2024 FY24 Q3 Results

Existing stores are 57, company intent to open 29 more stores in next 18 months. It is almost 50% more stores.
Aims to have approximately 200 to 250 stores in South India in the next six to seven years.

Growth and Outlook:

• Expects robust growth in the next two quarters due to festivals and the marriage season.
• Anticipates a 5% to 10% improvement in turnover for FY24 compared to the previous year.
• Targets revenue of INR 1,700 crores to INR 1,800 crores next year, with potential for better results than the 15% to 20% growth target.
• Expects 20%-25% growth in the present year.
• Targets a profit of INR 120 crores, with a 10% variation.

Operations and Efficiency:

• Made progress in finalizing new locations for future store openings.
• Identified locations for two new warehouses in Hyderabad and Tamil Nadu.
• Aims to improve margins by 4% to 5% by 2026 through operational efficiencies and premium format stores.
• Focusing on optimizing inventory and reducing payable days.
• Expect improved margins in H2 due to higher throughputs and improved purchase efficiency.

Store Performance:

• Same store growth in Q2 was approximately -5% due to the shift in wedding dates, but expects to achieve single-digit growth by the end of the financial year.
• Mylapore store may have lower productivity due to metro construction.
• Estimated impact of metro construction on store revenue is around INR 15 crores to INR 20 crores.

Available at 38 PE. a retailing company with long highway of growth.
Risk: Geographic concentration and single line of retail that is saree.

Disclosure: Invested and keep adding at current levels.

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