Thanks for an excellent synopsis. Your writings are eagerly awaited and liked.
One question, under ---
What can go wrong ?, "More money into apparel – unlikely".....Why \unlikely\?
I have apprehensions due to the below facts:
1- Under the profile summary of Gautam Chand Jain an entire paragraph is dedicated for apparel business.
It was another feather to the cap, when Pokarna Limited, under Mr. Gautam Chand Jain’s able guidance successfully diversified into apparel manufacturing during 2003 – 04 and within a span of few years could establish a brand, STANZA in the domestic market under which Pokarna Limited, commercially distributes and retails premium Men’s shirts and trousers in India.
2- Company is losing a handsome amount QoQ and do not show an intent( AR/Conf Call/Company Presentation) to STOP it.
Your synopsis prompted me to look at the company Website and here are my observations :
1. Firstly,Website really needs a toning down as it's full of attractive images, which have nothing to do with the product. Even these images are visible on the page dedicated to the Leadership Team.
2. Secondly, I could not figure out the companies business as these images were quite powerful to be ignored
3. Lastly, I opened the website during office hours and couple of passing by colleagues questioned my activity of opening such websites during office hours .
Above vividness bias, suppressed me to do any further reading about this company although your thesis was compelling.