Agree on all your points…on lighter note, another important concern remains on allocation in IPO 
…and we never know on how many billion $ valuation it would list!
Would you be a buyer if it lists 50%-100% above IPO price on listing?
would you please provide on which valuation nykaa is worthy , thanks in advance.
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Everyone plz go thru this informative video for getting a feel on valuation.
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Tomorrow listing of Nykaa which has preponed by 1 day.
Anyone planning to buy or hold ? views Invited
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definitely planning to buy but not at current valuation. i would wait for price to correct in PE of 100 something over next 12 month . Co is on fast paced growth but i dont see it growing > 10x in next 5 years in profit and hence at current value its a skip.
I will be buying a tracking position.
Valuation are on higher side, it will be even higher on listing but when i buy any stock i keep an outlook of 8-10 years.
N in that time Span , if nykaa excute well, current valuation won’t be an issue.
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I have added Nykaa today. Hoping that with the superior management capabilities and growth runaway ahead, earnings will catch up. Niche companies like Nykaa may continue to command higher valuations in the initial growth phase.
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Nykaa seems a far superior co to other fintech IPOs being listed now like Paytm .
Promoter quality & opp size is good and there is moat in business of network effect, customer loyalty due to trust vs too many fake products being sold even on Amazon/ flipkart & content.
Everyone plz go thru Brian Feroldi video posted in the thread to better gauge investing in high quality business.
Discl- Invested since IPO
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Excatly sir …
I spoke to few female friends, most of them prefer Nykka coz they r still unsure about the genuineness of the product from other websites or even from reputed stores, which is actually a concern …
So trust factor is a big moat , which helps in stickness of customers.
In every stock their exist pessimist or optimistic views , and both of them think they are right on every aspects including valuation.
So no point debating on it . The best possible way is to go as by individual conviction and risk taking ability. Finally let the market decide .
Bought on Listing - Nykka remains the only tech business I’m invested in .
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Nykaa giving great returns. hope headsup was timely & even those VPers who bought in pre open benefitted.
Scarcity premium Instt interest & unique business model will always leave Nykaa as expensive stock
Study Sapphire QSR IPO as well closing tomorrow. Mgmt quality seems decent n valns better then devyani. opp size great in non cyclical business
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Sapphire Foods made a preferential allotment of Rs. 474 Cr in August 2021 at Rs. 505/share. And now, the IPO price is Rs. 1180/share. (2.3x jump in 3 months and its completely OFS)
(Refer the highlighted section)
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yes thats the fly in ointment but otherwise how is business quality & increasing SSG & margins for sapphire?
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Found a decent article on the detailed comparison between Sapphire Foods and Devyani International.
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Wow, how did you manage IPO allotment? Is it just a chance or if we apply first day or any particular number of lots helps? Thanks
Lottery in retail & funding in HNI.
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Hi Vivek,
- how do you see valuation of company? what justifies this valuation
- can you apply in both retail and HNI category with same PAN?
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1 Plz go thru Brian Feroldi video posted above on valuation part
2. No with different PAN
How has life changed after the bumper listing?
The feeling is the same as it was at the beginning of the journey and as we went on roadshows with investors. The past couple of months have been a great journey. We met close to 120 high-quality and long-term investors. I think we are much more confident about the strategy and the company. The strong support the listing has received is the culmination of our belief in our story. I think the IPO and the performance of the stock show the interest and love that we got. The effort that investors have put into understanding our business is really amazing.
What’s the way ahead? Has the goalpost changed?
I have always likened an IPO to a graduation. Life begins after that graduation as you enter the real world. From tomorrow, we’ll have to be far more responsible. I think once you’re public (listing), you have to be more accountable, and now there are thousands of investors who are part of our family. You kind of grew up and you feel that, yes, the capital allocation has been done, but now we have to work towards a long-term view, take advantage of this tremendous opportunity of convergence of technology.
There is always a debate on which is best — promoter-driven or professionally-managed firms. With your children taking an active role, what is your view?
I would say why are you saying it’s a family-run business. It’s not. Nobody’s coming into the business because they are a part of the family. They are qualified in terms of educational background, the work they are putting into. So, I don’t see it as a choice between family and professionals. I think it’s more about doing the right thing in terms of building the company. From the time we started this the children could be a part of this journey.
But remember, we are running a large business and there are different roles, so I do not see family and professionals as a divide. There are roles as far as management is concerned and building this company and family members can be part of the management team, and share responsibility. And, yes, my family and I do have ownership and this will probably pass on to our children.
What’s your take on the future of Internet-led businesses in India?
When we were raising money, I didn’t seek external capital. I wanted to be invested and delayed any fundraise. When we began, we could not be a foreign-owned company. So, we started with our own capital and that’s why we saw more interest from HNIs and family offices. We did not raise money for the first two years. Our first fundraise was in 2014. It was only after restructuring as an Indian managed company that we raised foreign money and that also in such a manner that we did not give any role or give up too much control or have investors who imposed conditions. We have always raised Indian capital.
Now, to the current situation of funds chasing businesses. A lot of capital is available for the start-up ecosystem. It emphasizes the growth of the ecosystem. If you have the enthusiasm and energy and an idea then today funding is not a challenge. But, again, raising funds is not the end, execution is important. I think at an early stage, one should look at investors who can support you and believe in your idea.
What will the focus be going ahead?
I have always said that Nykaa is a multi-brand retailer first and, yes, we will continue to build brands as well. Between beauty and fashion, we have 3,600 brands. We are expanding into brands as well as other categories. In terms of international expansion, we are starting with West Asia and then maybe Europe. We do realise it is time to have a larger ambition.
Have you ever thought of an exit plan?
I have said several times publicly that I will not want to sell the company. I want to own it and let it be part of the family. It is a source of excitement for me and we love to do what we are doing. I think it gives a sense of purpose. Besides, I still have a lot of energy and ideas to take Nykaa ahead.
What is your message to other founders, especially for women?
I would always joke that work cannot be the last stand. For women, family and children are always up in terms of priority.
But, I think your professional choices should also get a slightly higher priority. Our priorities need to be reasonably balanced. I think women also have the right to pursue their dreams, and should not be afraid to dream.
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Sapphire foods getting listed tomorrow
Anyone planning to buy?
The QSR listed space is now getting too cluttered and all of these peers are competing with any new money interested in this space… Personally I do not see any significant differentiation in sapphire vs a Devyani or even a Westlife… Each have their own ups n downs but overall for long term, not much differentiation…
A small differentiation in burger King maybe its current smaller size, less mature stores while vice versa for jubilant…
It’s turning out to be a confusing space, at least for me, now and I really need to think where my current as well as incremental money, if any, should go within this space.
Disc. Invested in indian QSR as a basket with max exposure to burger King followed by Devyani, Westlife and jubilant. No buy/sell recommendation. I am not sure if this is correct approach and ideally would have wanted exposure to just 1 or max 2 players but cannot make up my mind … Would be great to know your thoughts!
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