August 8, 2023 Last 10 years sales CAGR is 8% and profits CAGR 10%. Last 5 years, these numbers are 6% and 3% respectively. Large size of the Company and competition is a deterrent to achieve significant topline growth. Operating margins are also currently normalised at 19-20% Company is net cash. This along with strong … Read more
November 3, 2023 Dairy and bakery are the key focus categories of the Company. In others, Company wants to be very cautious e.g., salty snacks; in test market for last 3 years. Company is strong in urban and with growing India’s economy that bodes well. In rural, company expects to grow through increased distribution In … Read more
July 12, 2023 About 25-30% business comes from B2B. Rest is B2C Lloyd’s contribution to overall revenues is increasing. In Q4 FY23 it was 26%. However, this is also the biggest drag on the profits. It’s still loss making. However, this shall gradually change given the recent inflationary pressures that should normalise. Management is very … Read more
July 7, 2023 Established brand 74.44% owned by the Japanese parent Kokuyo Company (mcap of USD 1.8 bn) 10 yr sales cagr of 6% and net profit cagr of 14% 6-7% normalised operating margin business Low debt company and Japanese parent’s presence further mitigates the liquidity risk Current normalised P/E is around 40x. It’s a … Read more
June 28, 2023 One of those companies that held huge promise at the time of IPO in 2016. Consequently investors overpaid. Revenues since 2016, i.e., 7 yrs have grown at a CAGR of 9%, EBITDA at 2% and PAT at 4.4%. Share price consequently since then until today is flat. A part of underperformance can … Read more
October 27, 2023 EBITDA margins got impacted during Q2 FY24 due to availability of excess supply in the industry. Demand as such is not a problem. Excess supply is primarily leading to competitive pricing and hence lower margins. Volume growth is continuing decent. Inventory losses as were expected in Q1 didn’t happen as prices firmed … Read more
July 26, 2023 Country wide industry trends Occupancy levels are getting normalised at 62% after reaching post pandemic high of 71% in February 2023 Average Daily Rates (ADR) however remain significantly high at Rs 6,800 compared with pre pandemic levels of Rs 6,100. It went to the high of Rs 8,300 in February 2023. Mahindra’s … Read more