Howdy Value Investors!!
I am very grateful to the knowledge I have been acquiring from this group!
This is my first stock pick please forgive me for any mistakes!
The company I am talking about is the Talwalkars Better value Fitness Ltd is Established in 1932, by late Vishnu Talwalkar, his eldest son - Madhukar Talwalkar, further continued the legacy under the name “Talwalkars Gymnasium” in Bandra, Mumbai in 1962 and the brand has been rapidly growing since then. Today Talwalkars has 80 years of rich experience in health and fitness industry.\
The fundamentals are quite impressive
Profit growth 5 years is 53%
P/E is reasonable around 17
Enterprise Value to EBIT: 11.85
Piotroski score: 7.00 ( I like to know whether the company is financially good.)
Consistent Profit Growth from the past 10 years.
Future prospects are good they joined with the 50:50 joint venture with David Lloyd Leisure Limited for
establishing and managing leisure clubs in India. David Lloyd is famous in UK for their leisure clubs.
(Recently, the share price declined due to the Talwalkars recently raised Rs 107 crore through a Qualified Institutional Placement the company had issued 35 lakh shares at a price of Rs 305 per share)
According to the peter lynch i got this company. I actually used to go to this gym in my town and they are well designed and maintained and crowded in summers(Good student offers). I once talked with the gym manager he said the only concern is the salaries are less but when i questioned about the growth of the business he said it’s pretty good.
I am just trying to start a discussion here on this business. If the seniors or other members can share their views, I’ll be most grateful.
Disclosure :- I don’t hold this stock in my portfolio.