Another school of thought is that middle class people buying costly ornaments may shift to these showy but cheap ones…though, I guess there may be higher bad debts may be seen…
How will middle class shift from buying costly ornaments to cheap? The target market itself for them is the price sensitive section of society… and when this section buys something expensive its an one of decision for a special occasion doesn’t really make sense. Also with the layoffs coming their income will be going away for allot of people , the last thing they will spend their savings is on unnecessary things !
Prime Target customers are " 40+ years White ladies" not necessarily economically weaker section…hence please revisit your thesis…
Have u tried to get in touch with CS …I have been calling them since couple of weeks and also wrote to them …still no response
what does 40 years + white ladies mean ? you mean to say that 40 years + ladies that are white are rich? That makes no logical sense at all , what does being 40 years plus and white have to do with money pls enlighten me of this law ?
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I think you first need to go look at historic data and see how discretionary have performed when unemployment is rising, debt to household is high and jobs and businesses are going out left right and centre and definitely have a hard look at your equation of 40+ white = rich assumption …
here some background on 2008, of Vaibhav global though they did have brick and mortar stores then also but still
march 2008 2009 2010 2011 2012 2013
|753 |587 | 337| 526| 645| 893
also since you see so much data and form an argument , do you know that nearly 30% of the sales now are on the EMI scheme they have started AKA credit, now with banks in the US facing a high chance of defaults , and business closing down, how many defaults there will be on credit ? and layoff means some of the individuals who bought on credit don’t have income coming in , and if they have other debt to pay that is non discretionary apart from everyday living expense , they are going to clean VB last , which means the potential of allot of receivables going bad , why don’t you open the bond market and see what’s happening there !! Better you think deeply before making uninformed statements… it may not mean necessarily economically weaker sections , I said “price sensitive” which obviously means this section of society in a time like this will not be splurging on unnecessary things when they can barely get food and pay other expenses , you think the federal govt is sending out checks to people for fun lol ! give me a break!
Company resumed manufacturing yesterday …
Edit: I spoke with one of the promoters …it seems business is running as usual and there has been minimal impact of Covid on their operations …they have enough stock to sell and have also added new products into their websites … @kkumar3
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I’m ware the operations are running normally… Running the business and having inventories in one thing… and your customers buying is another thing. Lets see the next 2/3 quarter results.
Yes thats what I meant when I said their business is running normally …there’s no demand side issues as yet …but yeah I’m aware of the concerns you mentioned and I’m keeping a close eye too …charts are bullish for now …US economy opening up is a good sign …let’s see
yes… see the unemployment numbers and the people who are filling for Govt cheque support ! Mom and Pop shutting down and reducing labour… do you really think they are going to go out and buy jewellery ? That’s just my take, I just feel might get a better chance to buy later IF the next 2/3 quarters take a nose dive which I think is probable. Might be completely wrong , but this is just my view
That’s why I had called them to ask how the unemployment is hurting them …she said it’s not …anyways Mr agarwal their CFO frequently gives interviews on business channels after every results …so he may give a proper insight into the situation …
Fair, though I feel the effects will kick in with a lag. Lets see
Rating note says they have been selling essential products, ASP may come down.
There BSE press release says operations as usual.
Hopefully by this they mean both in uk and usa.
Jaipur plant was closed for some days.
Results look good …YoY sales grew about 8% …net profit about 20% …comparing QoQ wouldn’t be right as December is their strongest quarter due to the holiday season
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Very detailed Investor presentation by company. Stable result and dividend of Rs 7/- per share announced.
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I was on the concall yesterday …mangement confident of delievering 15-20% topline growth with margins intact …
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yea but since December 2018 quarter the top line as not been more than 10-11%… management can say wtvr
The management back then only guided for such growth …u can look at their old interviews their CFO says it …