@atul1082 What I was trying to do is to compare with best of class to see divergence because what is everyones mind is if the financials are real or fake. So,
The sales growth stands out. While Titan grew only by 25%, PCJ grew by 100% in a lacklustre environment. There could be false invoicing to launder money. Show cash sales but no real transfer of goods. So the gift was a payment to settle dues. But no real effect on the company. Company got cash and promoters settled with own money. Doubt this happened. No Indian promoter is this generous.
The OCF/Net income in simplest terms shows how much of profit is cash. If everything is in cash and just in time, then difference will be D&A + interest. Here PCJ numbers are lower, but they are expanding stores and sales. Assuming sales are not fake, they will need more inventory, give out more credit which will utilise working capital. If Titan grew by 100%, think their numbers will also come out similar. The stores can be fake but in Delhi they show stores at South Ex, Karol Bagh, Rajouri Garden. These are very upmarket locations.
Again the market knows something we don’t; maybe their international business in Dubai has LOU as per rumour.
So this is really at 36K feet level. My exposure is limited so for now this is good enough to take a small call. Please do self due-diligence before purchasing.