Ather Energy is the most picture perfect company I've seen since Zomato.
Deadly combination of a technocrat promoter, high growth, gaining market share and a great product.
Best believe, companies like these will never be cheap.
Is Sydney Sweeney (28) dating Scooter Braun (44) for real love or just for his cash and Hollywood connection?
This guy is known for manipulatively buying Taylor Swift originals. Red Flag?
It’s not about ladke or ladki - it’s about what is right and what is wrong. I’d wager that nearly 90% of women who consume alcohol do so simply because they see men doing it. Why are we so eager to demand equality in men’s worst habits, yet remain silent on the real issues?
Why aren’t we asking why pilots are overwhelmingly men, why the vast majority of political leadership positions are still held by men, why female entrepreneurs remain so few, or why the burden of providing for the household continues to fall almost entirely on men?
Mimicking men in their vices and labeling it "feminism" is nothing more than a reflection of poor upbringing and a lack of proper education.
Dark days ahead for Automotive industry:
I remember telling my brother that I’m selling my TMPV shares because things will get messy.
Why?
At that time, Porsche had just written off ~$4.5 billion and Honda had written off ~$15 billion.
I had sold TMPV shares after holding it for 6 years and made about 300%.
But, about two weeks ago, I felt I’ve made a mistake and bought it all back.
And, today, there was a drop of ~10%.
Will I sell?
I don’t think so. At least not now. But, let’s see.
Nd also, it’s tiny bit of my portfolio so
it won’t matter much either way.
Already knew this yet I made the mistake: Net-Net automotive industry has been wealth destroyer (along the lines of Airlines), good for people, really bad business.
After burning my fingers in a retail business, I learned few very valuable lessons.
First, debtor days should ideally be zero. If they are anything above 15 days, don't even bother looking at the business.
Next, look at how much of the inventory is financed by suppliers.
For companies like Lenskart, Vishal, FirstCry, and AB Lifestyle, this is close to 100%.
For companies like V2 Retail, V-Mart, and Style Bazaar, it's around 50%.
For companies like Aditya Vision and Metro Brands, it's roughly 33%.
For companies like Electronics Mart and Go Fashion, it's less than 10%.
On a standalone basis, this tells you how much pricing power a company has over its suppliers, which in turn tells you whether growth is capital-intensive or not.
For example, Lenskart's growth is largely funded by its suppliers, whereas Electronics Mart has to deploy its own capital to finance inventory for new stores.
What's even more interesting is the trend of this ratio over time.
If the percentage is inching up, the company is becoming more efficient. If it's inching down, inefficiencies are creeping in.
That's why I call it the "ultimate efficiency ratio."
Look at Redtape and Sai Silks. For both companies, this ratio has deteriorated over the last few years, suggesting a loss of pricing power.
Look at Aditya Vision in FY19–FY21. The ratio was close to 100%, and RoCE was north of 30%. From that point, the company went on to deliver extraordinary returns.
Today, the ratio has fallen to around 25%, and, unsurprisingly, RoCE has dropped below 20%.
This suggests the business is no longer as efficient at generating returns as it was a few years ago, pointing to rising competitive intensity in the industry.
It's a useful framework for gauging efficiency.
That doesn't mean it's always accurate. Shopper's Stop, for example, has a ratio close to 100%, yet the stock has gone nowhere. It also doesn't apply to jewellery retailers, where the business model is fundamentally different.
Sometimes, a deterioration in this ratio is a conscious choice by management to secure cheaper sourcing.
To analyze all of that, you need to unleash another layer of analysis using GMROII (Gross Margin Return on Inventory Investment).
I'll write about that some other day.
There are a few more such frameworks. When looked at together, they allow you to analyze almost any retail business in a few minutes.
Most of these lessons were learned the hard way, you won't find them in sell side reports.
@gurjota Have you heard kukurmutta. It’s a kind of wild mushrooms grown in forests during rainy season. As son as market kinda stabilises or show little signs of upward movement these kukurmutta will come and give nifty targets and all sorts of gyaan
@gurjota https://t.co/SjJC8OXS8M
This is the same guy who said in February when our markets were at 25500 that even 10% returns in nifty for the current calendar year would be hard to come...
Such a drastic change in view is hard to digest
People lose their minds over a delayed plane.
Let a spilled coffee ruin their day.
But when it comes to the big stuff-
They stay in jobs they hate.
Let their dreams die.
Live life on autopilot.
Tiny problems spark outrage.
Real problems get quiet acceptance.
Why, why why?
One of the most outrageous market predictions on TV which even left Anuj stunned!
"Nifty can rise to 35,000 in the next 12-15 months
HDFC Bank is trading at 1.7x price to book, a lesson for me also after 25 years that anything is possible in the market.
FIIs have been selling Indian banks and taking the AI trade.
SpaceX listing may mark top of US bull market.
And I believe Banks and IT will lead the rally"