Friends,
After going thro the above analysis , few points stand out
- Lack of pricing power
- Heavy competition
- Slow move to Premium
etc
A few other from my notes notes:
- Promoters have increased their holdings a bit during 2023
- Next 2 yrs capex already built - current util 65% only
- Valuation staying high even through these down times.
- No of pairs sold is reducing, OPM reducing.
- My assessment of management over the few calls is that they are very reluctant on price increase (risk of losing shelf space and visibility to customer)
Am thinking what are the triggers for upside - Do any of you see any ideas or found something that can be potential for upside
Capex/Volume?
Premiumization
Any issues getting resolved e-.g. inventory, raw material, Systems implementation
Any potential for optimization/efficiency-margin improvements?
Whats the scope for growth - is it linear (based on population and geo expansion ) or any other triggers?
Thanks for your thoughts in advance.
Disclosure: Invested in parts from last 3 yrs starting from around 650 to 1000+. Avg 900. Almost flat.