Looks suspicious to me too. Intraday charts show very low liquidity but even with such big volumes on the minute chart prices have hardly moved. Effort without result.
Also, is it coincidence that two different trading firms trade the same stock at almost the same price and same volume on the same day?
Very insightful from 44th minute, he spoke about the qualitative factors in APL apollo and EFC and the kind of similarity in the qualitative factors of these 2 promoters.
Also you would see few points which I mentioned way back in the thread that due to vertical integration you get huge cost advantage like you become largest AC buyers etc etc
Second he mentioned on importance of being a good capital allocator and asset light, So if you would go through the Q4 FY25 concall you would see umesh said “” Dhanda mere control mai hota hai pricing mere control mai hote hai, costing mere control mai hote hai""
Do here the entire con call for context
So generally in the MA model the capex is done by the landlord and there is profit sharing on the rentals. Who does this? somebody who does not have control over their rentals like AWFIS. Reson is they dont have confidence on their occupancy and you kind of what to de risk where you dont want to commit to fixed obligation to the landlord
What EFC does is a SL model where the capex is supposed to be done by EFC but despite being an SL model the capex is pushed on landlord now how do you compensate the landlord? Instead of market rentals you give them higher fixed rentals
Just see the difference one is not ready to commit on rentals and one is paying above market fixed rentals this can only be done with the kind of vertical integration you have + the confidence to maintain the occupancy at 90% + and on the contrary you become Asset light what Samith sir is mentioning
What is the Strategy going forward?
Going forward they are going to churn their capital in property so in Large REIT I will acquire property and sell it, so companies churn capital they will churn properties 
And in the SM REIT I can directly do an IPO first and then acquire properties so 0 capital required apart form your mandatory contribution as per regulation
So this further de risks your business with full control on costing as there is no landlord
Actually if I tell you to tell me one PAN india furniture or D&B player for offices today you might find a hard time, I think there is a huge market gap and demand. D&B is a very regional/local business where you prefer to give business to people with local presence
Hence if a TCS wants to build in Pune they would have a saperate vendor list and if they want to build in Delhi they would have a saperate ventor list now what if they have a common vendor for PAN inda operation hence I think there is a market gap here
Also when I was speaking to Devex what they said is they do D&B work in only those states where they have local presence reason being is you need a registered company in that state to do that business so they were missing on huge business form states where they did not have presence
Being an Office provider you kind of by default have that presence of you business and team which can also be a benfit to give pan India services
hence furniture and D&B I believe have huge scope and market
Hi Manhar,
what are your thoughts regarding the ROCE bandwidth of each vertical?
Both promoters getting a massive 5x salary increase is a bit too high.
Also, an additional approval for 100 Cr for DC&T Global Private Limited which needs to be monitored.
source: https://www.bseindia.com/xml-data/corpfiling/AttachLive/50cd0080-302f-4948-a235-40b9e4b63a08.pdf
I wouldn’t be too concerned with the fixed salary hike, since it barely constitutes 2% of the annual revenues. But the performance incentive being 5+3% share of the net profit of the company is just crazy. To put things into perspective, when Bill Gates hired Steve Ballmer back in the 70s, Ballmer had a fixed salary of 50K USD and 10% of the profit growth share (not net profit). Even that was considered too expensive for an a visionary like Ballmer inspite of the enormous profitability of Microsoft. This is a commodity business and nowhere even in the same universe as being another Microsoft.
Disc: Was tracking before, not tracking any longer due to convoluted subsidiary structures and misalignment with minority shareholder interests.
