I’m not disheartened with latest no…management I think doing the best they can…sometimes market dynamics tests even big businesses patience…titan I remember has also gone trough long hiatus in its stellar journey…what matter me is just management with leading brand where consumers are upwardly mobile…not many consumer businesses are available having gross margin of around 67%…hope south India campaign with Ram Charan brand ambassador works out…my logic is simple…remain with leading brand in every sector…
disc. invested,vested, 3% portfolio.
Comments are encouraging, but I would like to add a point-of-investment thesis on my end. The bet is on the premiurization and management strength and, of course, the liquidity available at the free float. They are doing great business in their niche area, with increasing foot traffic and the expansion of stores. They operate on a franchise model, which is asset-light, and of course margins have not changed with the addition of so many new outlets. The crux of margin impact can only be seen in the EBO’s, but with Twamev stores, the asp ticket is about in the range of 30k to 40k, and selling the goods of 10-15qty itself is sufficient to overcome the expenses of individual stores, and the rest would lead to profits. I have visited Twamev EBOs in Hyderabad. The collection is extremely good, and the price point starts at 30K+. The area in which they operate this store is elite. Of course, the footfall may be less for Twamev, but the sales average is close to Manyavar even with the lower volumes. In otherhand, in terms of age of population, India is a nation with a higher number of youngsters who are unmarried. The mantra is simple, an increase in per capita will lead to an organized market, and when this happens, it is a win-win for Vedanta fashions and shareholders.
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The derating story continues, I believe the next leg of rerating for consumer companies will only come from Volume growth as the market now understands that lucrative story eventually doesnt always translate into numbers
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