SreeLeathers Limited


(Ashwini Damani) #47

The Barasat one…It became fully operational Around Puja’s.

Another store in being made in popular Gariahat Area of Kolkata.

meanwhile a news snippet, which is just for information (no inferences)


(Gothamcapital) #48

THe price to sales is very high around 5 times.It is quite expensive.


(ffaizan) #49

Good set of numbers sales for Q4 up 27% YoY and PAT up 50% YoY.

For full year sales up 40% and PAT up 40% approx.


(Ashwini Damani) #50

The biggest store on Lindsay Street, doesnt even belong to the listed company…


(Nikhil Goyal) #51

I have been trying to understand the business model for Sreeleathers.

One of the things that I have understood is that they buy from local manufacturers, and sell it as a one-stop-shop for leather. To scale up their business, they started handing out franchisees, and building their footprint across the nation.

While the story looks convincing from setting retail stores, it put forward following challenges:

  1. How will the procurement methodology change? With current local producers, either the number of producers need to increase, leading to higher cost of quality check, or the local producers would need to invest in production units, which will lead to increase in costs from existing vendors?

  2. Will local producers be willing to invest in specific assets, on assurance of Sreeleathers? Can it backfire with increase in inventory costs?

It does look like that strategy needs to change on procurement side, i have tried looking for it at multiple sources, but couldnt find if this is being seen as an area of challenge. If any of you have any idea, do post.

Thank You
@akash_1cr and Nikhil


(Ashwini Damani) #52

Sir…

We went to the biggest store of Sreelathers on Lindsay Street… There was a huge crowd…Everything was good. We also went ahead and bought some stuff. The bill came and thats when I realised. By looking at the GST Number, I was aghast. It belonged to a Partnership Firm. (GST Number is a combination of PAN Number + Other Digits- The 5 Letter of a Pan number denotes what is the nature of entity to which the PAN belongs. In this case the fifth letter was F)

For Individuals it is P, for companies it is C, for HUF it is H. Partnership Firms are denoted by F… The biggest store of Sreeleathers is housed in a Firm and is not part of listed company


(Donald Francis) #53

Thanks Ashwini for the important scuttlebutt!!
Yes, we should keep striving to establish details of company owned stores, to get a better grip on the sources of growth and the quality of growth exhibited by the company.


(Brijesh Mahawar) #54

As per my understanding even the Delhi showroom is not in the listed entity.


(Anand Bhushan) #55

Hey Ashwini please let us know the complete pan number…as it should be 4th letter instead of 5th letter mentioned by you.


(rajeshaaidu) #56

Hi,
I think management integrity and hunger both are above doubtful. They are not having any bussiness plan or management.

2 years back I have contacted them for opening a frenchisee store. Their people have called me to kolkata, but when I have gone there to meet them- their marketing manager kept on making stupid type of excuses; finaly, I got frustrated and left them. In retrospect I understood that since I have written a mail he was forced to reply me, but when I reached there he kept on making various type of stupid excuses.
Then I have enqired with some of my friends in Kolkata and they have told similar type of stories. When I have asked them but why they use to behave like that? I got a reply that their managers don’t want to expand because their work and targets will increase. After that I have got atleast 3 people in 2 year time who told me same thing.

No doubt, their products are in good demand. Low cost competitive advantage. But, from investment point of view- it is a big- NO! Atleast till the time promoter are changing and which is a least likely event.
Disclosure: Not invested and not interested.