Palash Kawale

Equity Research at Nuvama | Mechanical Engineer

[Palash Kawale @pskawale]

@GaganDeep0414 @Nuvama_Wealth The management has already posted revised invite with a working link on the same day.

Sharing the link here: https://t.co/or1AmIGRoE

[Palash Kawale @pskawale]

@SridharanAnand hahaha.. I wear Crocs regularly. Looking forward to a lot of things in life. May be not a grown man at 31😂
Only this conclusion makes sense.

[Palash Kawale @pskawale]

@LearningEleven Good to see my report spreading 😀
Value retail as a whole is up for good couple of years at least...

[Palash Kawale @pskawale]

@SridharanAnand looks like they already restarted the funding sir😑
they saw your tweet😑😑

[Palash Kawale @pskawale]

@AdityaD_Shah No they're not. Company has raised funds couple of times to fund its working capital requirements given such a high growth. Just a dilution and that too with institutional investors coming in last round.

[Shyam Sekhar @shyamsek]

India is a marketplace of price givers. You need to be right on price. I learnt this lesson first when confectionery companies could not move the price of a chocolate from 50 paisa to 1 ₹. There simply was no market for a one rupee confectionery product and this situation lasted for decades.

The shampoo revolution, on the contrary, started at the ₹1 price point.

The 4 metre rule for determining lower excise duties created a whole new category of cars. But the real driver was the price point, which was a sweet spot well below what traditional sedans were sold at.

The entire emulsion paint revolution started at the ₹100 per litre price point. It was indeed literally an Ace served by Asian paints.

The entire fast fashion revolution is built on the perfect positioning of price point.

To popularise anything, you need to get the price print right. The reason why book publishing has not taken off in the world's most populated country is that there is not enough effort to get the price point right and to pump grow the market with content. The data revolution, OTT penetration and cable TV proliferation all happened on getting price right.

To build anything, you need to get the perfect price point. What are your examples of getting the price point right and tasting huge success?

[Palash Kawale @pskawale]

@itsTarH Really difficult to scale up the distribution. They know local market better than anyone. So that's the real moat.

[Palash Kawale @pskawale]

@SridharanAnand though i haven't been to therapy so i dont know how its like.. but this is what cool kids say nowadays!

[Palash Kawale @pskawale]

@SridharanAnand sir, reading your posts is like therapy.. hahaha

[Palash Kawale @pskawale]

@SanCompounding Such a high growth wont allow them to make positive cash flows for some time

[Palash Kawale @pskawale]

@SanCompounding They need to keep inventory in the form of gold so not a lost of risk there

[Palash Kawale @pskawale]

@SanCompounding Growth has been so steep that they've been investing everything back into the inventories. Op. cash will be negative for next two years as growth will be high for upcoming two years.

[Palash Kawale @pskawale]

@SanCompounding Cash flow will be positive after 5000cr sales when company gains scale and is able to generate high internal accruals.

[Palash Kawale @pskawale]

@SanCompounding Apart from that promoters are hard working and very good.

[Palash Kawale @pskawale]

@SanCompounding Normal working capital cycle for 45 days. 25 days of inventory and 20 days of receivables. FY24 endinventory is high, as company started to prepare for growth in FY25. Should be interesting to see Q1 inventory levels.

[Palash Kawale @pskawale]

@abhymurarka But surely a great opportunity!

[Palash Kawale @pskawale]

@abhymurarka Textile sector is more volatile when it comes to margins and size of pie for textile players is increasing at a lower rate when compared to electronics. Also, textile story is more of a taking market share from other countries than overall market growth.

[Palash Kawale @pskawale]

@Mann_ashar Nikhil has written so many good reports in recent time. Discovered stocks like Aditya Vision, Rajshree Polypack, TCPL Packaging and all these companies are top notch.

[Angad Singi @AngadSingi]

More on this soon. 🎉🎊🍾🥳