Latest concall updates on income tax raid for the company and promoters:
Q4 FY25 - An income tax raid led to a liability for the company and promoters.
Q1 FY26 - The company’s tax issue is resolved. Promoters have appealed for the liability on them and will handle the matter themselves.
I have started accumulating this share and listing to earnings call. It is a family run business.
I have tracking this company for more than two years now. I got shares allocated in IPO.
My perspective on Saree market changed after listening to one of founder’s podcast.
They track expenditure to minute level and trying to optimize.
Kalamadhir has offerings catering to all economies middle class ,upper middle class and premium etc.
I am still trying to dig in detail on their operations margins etc by analysis annual reports.
Disclaimer: I am invested in this.
Current correction would be the result of adding Valli silks format (Low margin) stores instead of VM format (High margin) stores in the current quarter.
In light of increase in GST rate from 12% to 18% for apparels above ₹2,500, is it likely to negatively impact Sai Silk? Wedding sarees usually cost above INR 2,500.
In my opinion 6% increment in wedding saress is nothing for wedding shoppers.
Recent Interview by Management.
I think he has a over hyped take about the technology they own. At one point in this interview he says they have system with 12 lakh lines of code to manage only incentives for the employees. Either there is some kind of a slip up from his side or the whole incentives module is written in assembly.
4-5 Crs loss during the early to mid-90s is a humungous amount. He belongs to a family that can muster that much amount and yet he goes to Dubai and gives interview for starting roles.
He was obsessed with lising the company on the stock market. Not sure if the reason he gave for the withdrawal from the IPO in 2013 is logical enough.
Somehow I can’t believe eveything he says there, now I am starting to wonder if the reason given about last year not having good dates for wedding is just a cover up, just like how they covered up the income tax raid notification under a business update notification to the exchange.
He says, he said to himself “Game On” when he was able to list the company. Never mentions anything in terms of about using the proceeds etc. Multiple times during the interview he mentions “He is not a speculator”, something doesn’t sit right.
Invested a small position looking at the commentary and future possibilities but this interview has made me take a harder look at the company.
Edit: This post in Manyavar(Vedant Fashion)'s thread gives good clarity about 2024 having lesser wedding dates than 2025.
As per my understanding, Last year Q1 is washout quarter for them due to lack of wedding dates and posted only 2 Cr PAT. Lack of wedding dates in this quarter is true.
