Just want to acknowledge your early work in MPS.
The competitive data that you had put up brought a lot of perspective for the early investors into MPS. You were he one who pointed to different margins at play among the bigger players, and other such data painstakingly put together.
Guys, if you give importance to this type of work at VP, please go back in this thread, and provide big-thumbs up (add your Likes) to that specific post that really stands out even today when you go back and browse the thread, among others
My perspective is that MPS is well known as a brilliant turn-around story in the last 2-3 years. What is interesting is that it could well be in the “Global Sweet Spot” that Management paints in 2015 AR (we should ignore the sleekly hyped up parts by Kolkata based AR expert, but not IGNORE the facts either)
Having said that, let me re-iterate for the benefit of newbies at VP
Do not start salivating at Mahesh’s well-meaning comments either, no matter how much you respect anyone’s work/contribution . Don’t think the Verdict is out in the open. I wouldn’t venture such adjectives as NO-BRAINER or mouth-watering valuations with some fixed multiples like EV/EBITDA or Acquisition track record, just yet. Can’t be as simple as that, can it. As Hitesh has astutely observed A lot depends on how the Management walks the Talk in the next 2-3 years; how it executes, especially on acquisition front - that can make or break it - Ticket sizes are much bigger 10x last times - one can’t help overemphasise.
The endeavour from here should be to dissect - Is it really in a Global Sweet Spot? Really? Why or Why not? Lets focus on that.
Let’s ask tough questions on Business Quality. Sustainability of Competitive advantage for a Long Time, Can someone dislodge it from its perch? What all can go wrong?? Predictability of the Revenues/Profitability, Can it be a consistent performer over 3-5-10 years, why or why not? A lot lies on the answers to the above questions - Any comfort (or discomfort) in Valuations can only be reflected from that. Our comments on Valuations will carry conviction only when backed up by indisputable facts/evidence either way.
Disc: I am invested, as disclosed in the Management Q&A post. Very small allocation 2 years back, added more recently. Having set the contours of the business that MPS operates in, I now find it has very little operational challenge, or disruptive competition, or Customer pressure. Everything works to its advantage, unlike many other quality businesses, It’s quite free to keep executing. Much of my confidence is an ACT of FAITH …The story can play out differently, if execution falters
Everyone - As influencers in this discussion/debate don’t forget to add your disclaimers. Its a MUST. Also Like to remind we need similar disclosures if & when you exit, within reasonable timeframes.