A good company and a good promoter is not enough, the price has to be right too!
Retailing is extremely hard anywhere in the world,and especially in the U.S., which is the world’s largest market and everyone is focused on it. Good supply of cheap products is good for this company but marketing in the U.S. is not an easy game to play. The costs are high.
Fashion trends are fickle in the products (trinkets, really). Besides, margin erosion is a possibility. They are already discounting heavily so if the fashion trend reverses how will they make sales?
Finally, cloning Sanjay Bakshi seems like a good idea but we do not know 1.what price he bought 2. What is his portfolio allocation and 3. Whether he’s still holding it.
All said and done, the stock can still go up and I might be completely wrong but I see no margin of safety (yet) and considering that retail is generally “a business with a reputation for bad economics”, I’d steer clear of it.
Disc: not invested but looked hard in the past and passed