sinha124Santosh SinhaSantosh Sinha1h
Look at this FHCO listed at Nasad has obly 500 cr m cap and PE is only 10

A stock PE have various phases according to the business cycle ..when the business is expected to grow at a very healthier rate and with sales the profit margins are expected to expand then the stock is given a high PE ratio.. which you can see in the case of eicher motors or page industries .

FCHO is not expected to grow the sales and profits in a way cupid is expected to grow.
so you cant compare two different businesses in different geographies at different business cycles on the basis on PE only .

Zee has financial muscle, and treehouse appears to have execution capability. K-12 business of Zee Learn (Mount Litera) is much bigger and covers almost entire length and breadth of country. If K-12 segment is transferred to Zee Learn, and Kidzee is transferred to treehouse; it can be a great arrangement. Yesterday Zee Learn promoters brought 10% stake from treehouse promoters, thus it appears that Zee wants strategic stake in treehouse. Looks good for the business of treehouse……. if any hostile attempt is there (looks unlikely), it is good to be with the company being acquired.

hi sta,

They buy it from different vendors. As far a I remember private companies like Pyramid Packaging (corrugated boxes), Dynaflex (Tamper evident security envelopes & corrugated boxes) supplies a significant chunk. Dynaflex in an interview in 2014 said they have relationship since the day Flipkart started in Bangalore and supplies close to 50% of their requirement (not sure about which packing material they were referring to, Please see the link here.

Also Pyramid packaging supplies a big chunk to ecom companies. Read here .

Overall its an unorganized market. Most of the players in the industry does jobbing work like some makes the paper, some does printing, few players takes the order and outsource it to vendors. Only three players TCPL, Borkars and Parkers are integrated players.

Thanks
Kunal

Dear:

Just as every time we board airplane, we need to compulsorily follow procedure including listening to emergency instruction from air hostess, so also moderators may be compulsorily trying to enforce certain things for the greater good.( If you take a sample estimate from people on a plane, many will say that some of this procedure need not be compulsorily enforced but it still persists).

You are a much smarter in stocks than me and when top contributors like Anant Jain and Hiteshbhai have acknowledged your skills, it comes to full stop.

I hope to hear more of your views on stocks from you in future on the forum.

Thanks