Blinkit has moved far beyond FMCG… newer categories will keep driving growth for them. Also, a significant part of incremental consumption isn’t driven by listed FMCG cos. Unlisted cos like Veeba have become 1k cr… there would be many more such cos (Paperboat, Pepsi/Coke India, etc etc)

Can’t answer on behalf of company, but from going through all their concalls and meetings.
I can try to present their point of view about this is:

• This discrepancy in negative operating cash flow and positive net profit is due to changes in working capital, including inventory buildup, receivables, and other current assets/liabilities.
• The inventory buildup suggests that the company has been increasing stock levels, potentially to meet expected future demand or to fulfill contractual obligations.
• The company is expanding into defense and auto, which will require higher inventory levels to meet the production requirements and future contracts.
• The recent acquisition of the Mercedes-Benz machining unit and capacity expansion from 18,000 TPA to 32,000 TPA suggests a need for increased inventory to support a higher production level, which can temporarily increase working capital requirements.

Given the push into high-growth areas like defense and auto, and the company’s strategy of increasing production capacity, the increased inventory could be strategic — ensuring they can meet future orders without disruptions.

This type of strategic inventory buildup can lead to negative operating cash flows in the short term, but it may position the company well for future revenue generation.

Personal Note: I am swing trader, I entered aroud 320 ( right after break out ) and exited around 750 level.

I still find it’s fundamentals intact, and keeping tabs on it for future entry point, as long as the story is still intact.

Hi @Mudit.Kushalvardhan, wanted to know did you consider Nifty MidSmallcap400 Momentum Quality 100? In one of the videos of momentum lab they said that this is probably the best index to find stocks. Or do you think adding another parameter, quality in this case, tends to bring down the returns.?

Compiled some notes, i should have posted it here, my mistake.

@hardik_shah1
You are absolutely right.
The top most 3 important parameters for the customer is (1) Build quality & Reliability (2) whether there is extensive Service network with well trained technicians at every corner of towns/ cities (3) Spare parts availability in service centers.
Initially, the customer may tend to buy whatever is cheaper , but then if there is any issues as mentioned above, word of mouth spreads and if the customer has a choice, then he would go for alternatives. This may be the reasons why Ola is losing market share.
Further , Bajaj is yet to ramp up its EV volumes…it has only shown a small trailer …you can not under-estimate this 1971 Chetak maker.
Hero was passionate about its motorcycle premium brand, but initially neglected the EV Scooter. Hero has realised this and now focussing on EV scooter. EV motorcycle costs goes up by 2X- 3X than its ICE motorcycle. So EV motorcycle can not be for the mass market.

TVS had also taken the potential of EV scooters seriously.

The EV 2 wheeler penetration will only grow by the year and onwards, barring seasonal factors.

While Bajaj , TVS, Hero started focussing EV scooter to snatch away Ola EV market share, the sleeping giant HMSI (Honda motors and scooters) took away some market share in ICE 2 wheelers from this Trio.

Honda (HMSI) is also ready with 2 wheeler scooter. Would be launched in a massive scale.
With all these players , there would be tough competition among all , though the EV market opportunity is huge , expected to grow 65% CAGR as per estimates from 2024 -2030.

Bajaj had also launched a 2 wheeler CNG which is selling like hot cake…By seeing roaring success of Bajaj CNG 2 wheeler , TVS is also launching a CNG.
Bajaj already has 3 wheeler CNG.

So the market is getting heated up and only the fittest can survive- who can deliver Quality , reliability with extensive service net work , soares availability.
In case of Ola , if we relate to Rabbit Tortoise story- Ola was rabbit , other Trio were Tortoise.It appears though Bajaj, Hero TVS were slow in EV 2 wheeler induction, finally the tortoise seem to have overtaken the rabbit