May 2022 - FY22 Year End Call
Atul Modi saying they can more than double FY22 revenue of Rs38 crores in 2 years and then double again to Rs150 crore. Two years later we are at Rs 56 crs
I think the reason for no growth in revenues and decline in margins is same…dwindling exports. They used to make more margins in exports. Domestic sales have lower margins.
I was very interested in the company. But was uncomfortable with the high salary drawn by the promoter family, and then S-I-L was also onboarded at a high salary. Thank God I didnt invest.
The promoter has the tendency to say 30-40% Growth like its nothing. I doubt they even understand the challenges they would face if they were to grow at that rate. As per my understanding, their products are not high quality as they claim. They are good and dentists use some of them for certain procedures. But in technically high procedures they prefer brands like 3M, Sirona, etc. The promoter constantly ignores this feedback from various analyst. Good Sector, Good Opportunity, But Prevest is disappointing as of now.
Main point of revenue on a small base not growing - 100% I was wondering the same few quarters post IPO as well. Their market share is low single digits and so definitely a huge opportunity - domestically and internationally. 20 years in the industry and they have not grown that share significantly - either grabbing market share in dentistry is difficult or they have not cracked the business yet.
They seem to focus a lot more on the international business which requires more certifications and accreditations and is higher cost, higher margin business. And they work across so many countries with a small sales and marketing team so they would be spread thin.
A possible rethink on their go to market strategy for growth is essential I believe - the S-I-L has his task cut out!
