I was reading about this company through Jyothy Labs and eventually reached this one.
Regarding the management, one of my cousin bhaiyas has a chemical shop in Agra and has been a very old supplier to this company. He was even allotted shares at the time of listing. He said the people are good, and the management is around 40–45 years of age.
They do not compromise on quality. My brother also said that there is a brand called Ghadi detergent, and Doctor Soap gives it good competition.
Do advise what else I can ask.
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I became interested after learning how the ‘Doctor’ is an old brand, with good recall memory and penetration in rural areas. I had never heard of it before so I asked my mother, and she knew it but added that she couldn’t find it in any store in the neighborhood, not even DMart or other MT stores (I’m from Gujarat). I followed up with how does she know about it and surprisingly she had seen ads on social media.
Anyways, though the company looks good financially, decades old brand, manufacturing experience, and consumer base that will make repeat purchases, my issues are with management and related-party transactions.
Since I can’t meet the management, my first step was to check their LinkedIn profiles. The current management appears to have only joined the company since 2020 and managing and running other parallel businesses.
The has the opportunity to reinvent or redesign with the modern times and find significant traction on e-commerce or quick commerce, but that seems missing. It is available on Amazon but sales from those channels look quite negligible. I draw parallels to various young D2C brands (such as Beco, Happi Planet, Koparo Clean) in same category that have done well. Unlike them, Pee Cee Cosma has distribution, scale and manufacturing (translating to various cost benefits and be competitive).
I couldn’t find any other documents or resource, other than Annual Reports, where management guidance or operational details could be found. It’s tough to build trust and conviction without meeting the management.
Multiple related party transactions (including lending to related firms) in construction and real estate, too, makes me uncomfortable as an investor. The integrity of the management might be solid, but I believe lack of focus and inability to reinvent with times will keep the real value locked.
