Jay Jay MIlls CARE Ratings Report
The key to proper in-depth research is not to take anything for granted. And to question anything that prima facie does not add up.
Jay Jay Mills as you may be aware is at half the capacity of Kitex and supplies to some of the same large Customers. It manufacturers infantwear and also sells fabric - the same as Kitex does. It operates at 10-11% EBITDA margins
It’s not good enough to dismiss/opine western buyers will pay a premium or Infantwear is a niche with very high margins. We all need to become better at collecting facts and question hard - based on the facts.
And then establish whether or not superior EBITDA performance is sustainable. Just as whether the company can continue scaling up at 25-30% for next 5-10 years despite the labour issues. Find the answers as to why this is possible to sustain, or why it won’t.