I have a “mixed feeling” about this stock. Below are the reasons:

1. When the company had started to share that they aim to have 80% revenue from Specialty, there was no “semi specialty” segment, whose margins are lower than Specialty, but better than commodity. This “in between” segment was introduced later (i have not tracked the company every quarter so dont know when this introduction was done).
2. I read through the concalls from FY 2023 onwards, and felt that some product introductions got delayed, examples: heat control films, adhesives. I think that is ok as many a times there are some delays, need to give some leeway to the company.
3. Zigly, is an unrelated diversification. What was the need for this when the core business itself needed capital, and also that would have diverted management’s attention. Co. justifies by saying that it is a low capital business, or they invested very less capital, there is a dedicated business head from day one, etc. etc. Zigly is still loss making, and they have acquired another company in pet care.
4. As far as the core business is concerned, there will be ebb & flow until 2026, in terms of revenues, margins, EPS and hence the share price could be under pressure for that time. Stock is for sure down about 50% from the previous peak, but am concerned that it could still go down from here.
5. Looking at the past, the share price consolidates and tests one’s patience for a long time. But at the same time, it has given handsome returns.
6. A possibility that I imagine is that the stock could fall from here, consolidate for some time, and then when the fortunes turn, could be a multi bagger…BUT…WHO KNOWS !!!

Disc: no investment, tracking

Hello Everyone,

Have a look at the RPSG Ventures scrip, its from the stables of Goenka group owning several recognized names like CESC, CEAT, SAREGAMA, Spencer retail, Philips carbon and First source solutions.

Rationale for investment:

• 54% stakeholder of First source worth 7k Cr (54% value)

• 49% holder of Lucknow Super Giants IPL team worth 4k crore (49% value)

• Owner of other sporting franchise like ATK Mohun Bagan in Kolkata

• 100% of Quest mall in Kolkata worth 700 cr

• 100% owner of FMCG brands like Too Yumm ( Virat Kohli is the brand ambassador), Dr. Vaidya for ayurvedic medicines (mainly viagra), Shampoo brand promoted Kirti Sanon

• It also funds several D2C startups ups which could be sold or go for IPO with windfall profits.

• Promotors are have last week added 10% stakes at 795/share via Qip.

• Renowned investors of this gem include CLSA, Ashish Dhawan and many more.

**All the above for a market cap of only 2300 cr … **

There are lots of factors at play here pushing stocks up every day.

It is one product where there is over capacity.
Also, in Aurore Shri Arun kumar holds stake. And Aurore management initially agreed for merger as they knew AK.
On digging deeper, when the merger was in process, they came across the extent of actual rot and issues. That was the basic premise of calling it off. So i draw reference from there. Infact Aurore itself is sitting on Multi Cr losses on account of Molnupiravir inventory (write off?), merger would have made sure that they sink.

For Dec (month) 2023, they have done ~20 Cr, quarter will not be good. They right now do not have people.

Lets hope they turn around some time.
No positions.

PS : Biocon also going through hard, very hard.

Hello Raj, for a sample size of one (me), this is exactly in alignment with my own experience. I finally made the switch and bought a competitor product even though I tried all I could to stick to the brand. I knew at the time of purchase that the alternate brands would not last as long as a Jockey. Still I did it because I had no choice, literally.

I have not lost my trust in Page industries though. I am not invested yet, but I will wait it out a little to see how they turn it around.

I am not sure which investor said this (Warren Buffett probably), he said that he loves a business where he can just walk in an talk to the people. I feel the same way about Page industries. I can visit the shops, talk to the dealers and get a (albeit biased) view of the business. I will do that for a while and stay on the sidelines.