Earnings Transcript of Navneet’s Q3 earnings call - https://www.bseindia.com/xml-data/corpfiling/AttachHis/eb49a36a-2bfc-48b4-92cb-08e98fdadcfa.pdf
Worth reading, lots of interesting comments by the management on their business vision. Questions were asked about the 75 crore investment in SFA. While I couldn’t get clarity on why the valuation was so dear, the business rationale was explained well.
This is, in my view, now a bet on whether Navneet can execute on the vision. If so, this will be a multi-bagger. But it’s not a short-term investment - a two-year hold at least. IMHO, any short-term up move will depend on the stationery exports growth which is not being spoken about much. If Navneet does not execute well enough on the digital vision, one has to hope the management’s ethics are strong enough not to weaken the parent company’s financials.