Hey i dont know about compuage info but yes redington is the distributor and not the Brand licensee of Apple
Creative is Brand licensee of Honeywell
Their Enterprise bsuiness is kind of overlapping with Redington but still Creative is National Distributor it passes down the product in Value chain
Where as redington sab khud karta hee

Tbh in electronics component there is literally no one doing brand licensing

Hence you’ll not find core competitor → To understand the business model go through Page ind or Jubiliant foods

If you see tradtional business model you can say 50% Overlap with redington

I’m sorry your intepretation about the Credit rating is wrong Creative has it’s chain of distributor network that follows the supply path for almost every products in their portfolio

And hence the customer conventration

Honeywell’s business is mere 10% of revenue
They have vision to scale upto 2500 – 3000 crores of revnue even by 2030

See the moat is simple – Honeywell wont come to india and sell this white goods – Investement chaiye, Forex Risk, Credit Risk, Operation ka karcha and much more.
Hence Brand licensee – The audit of honeywell and its clearence required 2 years for creative
Switching time is very very very High
This is the moat in my opinion
The board seems quite competent

PE Is percperation of growth in earnings
Is the blended margins become 2x from 2% to 4%
The Profit CAGR Is very Hugh and hence highh PE

Go through earnings call in my opinion

Disclaimer – Invested and Baised

this is what their accounting policy states about the same, cant quite understand what fees would Krsnaa be paying to hospitals!

Good point on the teleradiology. Yes, it’s essentially x-ray (they mentioned x-ray against teleradiology in DRHP and later changed to ‘teleradiology’ in presentations but it remains the same). Agree on the view that this will not move the needle for them. They recently aligned the reporting so now the CT/MRI centers and no. of machines are the same. It’s good that they made it easy to understand now.

On the sharing with hospitals, I think it’s basis revenue (they have mentioned in one of the presentations). Their pricing for private hospitals also go up by 20-30% to cover this revenue sharing.

Read its credit rating looks like 60% revenue will be coming from honeywell business, (correct me if my interpretation is wrong),

I was going through the DRHP and found its two listed competitors .

Looks like compuage infocom is facing serious headwinds attaching its credit rating and redington has historically traded at PE around 10-15 so Creative Newtech’s PE at around 35 is maybe because of their changing business model from low margin distribution business to contract manufacturing of honeywell business.

Their brand share seems to have evolved as in 2017 in their RHP majority share was of Sony, Samsung and LG, I see they have brands which are niche which could command better margins IMO.

The promoter is an IIM bangalore Alumni and has good experience but do they have the capability to do contract manufacturing for more brands is my question. Currently reading about the history of the company and trying to understand their MOAT would appreciate your input.

@yashrachh could you help me also understand this expense that Krsnaa shares with hospitals? Is it basis/test or is it as a fixed fee or a fixed %age of revenue?