Please elaborate. How does loan distribution business helps this ecosystem?
I hope everyone has seen the 29th wealth creation study by Motilal Oswal, the point I am trying to make that when Raamdeo sir said that the companies when they make good money and revenue and profits start to come in, the management sometimes does not know how to deal with it and start MISSALLOCATION of the money. I might be wrong here but this can also be a point to consider with new acquisition.
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Can you please share this study? Thanks
Investment Thesis_BLS international.pdf (734.5 KB)
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Ramdeo is just borrowing this idea from Buffet and Munger. If you go through their letters, they have strongly spoken on the misallocation of capital via M&A. In fact, they’ve asked to avoid companies which run too much behind M&A.
BLS and Sona, both are in my portfolio. So far the acquisitions by both look good. However, BLS worries me a bit. Moving from a high ROE business to set up a lower ROE business using cashflow of the former is not a smart move.
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i think making an assumption right now seems difficult and need to see the impact on numbers in the coming quarters. As far as i understand, the price might factor in a wrong decision in the short term but the long term story still remains intact.
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Mgmt sounded little cautious about the YoY growth in terms of visa processed but are confident that they will maintain the margins around 33%, my speculation is since this Q saw some major world conflicts that might have contributed to less than expected travel figures.
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Could you share your sheet with the data used for these calculations? Are these stand-alone or consolidated numbers?
Consolidated, used screener.in p&l statement and balance sheet for trade receivables. Let me know if there is some mistake
I’m not currently tracking this company, but I recall they had some receivables issues with the Punjab government. You can find more information by searching for ‘receivables’ related to this topic
i tried with proper numbers and looks like the company has done well in profits too cash conversion post their problems with Punjab gov.
looks like this is a rare B2G company which is cash rich and has negative working capital days.
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Visametric Vize Hizmetleri ve Danışmanlık Dış Ticaret Anonim Şirketi, a subsidiary of the Company, has subscribed to the share capital of Visametric Albania SHPK, making it a wholly owned step-down subsidiary of the Company.
Entity will be Providing visa counselling services as an authorized institution of the German Consulate
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can someone explain me the threat of auto-approval of VISA/passport online self-applied VISA ,passport because in the end this will happen online right ? @shankarnath
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Can someone explain me. If the company is moving from a partner based business model to self run business. How can it benefit the margins as the company will have to add capital to buy property, staffs, etc. This should impact the profitability.
It should happen, but not anytime soon. Will be interested in knowing informed view.
Partners would also have some margin on their end, this will basically help them pull those margins in their books. Of cours,e they will have to be as efficient as their partners to increase margins.
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