Re iterate buy on Relaxo and Cravatex
Both are good retail stories expected to grow your money over 30% compounded per annum for every year held.
Relaxo – Latest Q2 Sales are 30% up, so are employee cost, new stores expenses, its only a matter of time before net profits catch up after gestation and establishment expenses. Patient investors will be rewarded handsomely. Downside too is limited for this robust stock. No reason why it should not command PE multiple of 20+. Even without PE re-rating 30% compounding seems no brainer.
Story for Cravatex has only begun and one should increase allocation as it become clearer that stores are making profits.
Read this link, its now been confirmed that new retail stores that stock FILA products should add upto Cravatex Ltds accounts.
There is no doubt as per next statement:
“The brand licence was bought about a year ago by Cravatex.”
This statement should make anyone’s heart throb who knows enough about investing:
“Most of the stores are going to be franchised.”
Both statements from this link
If any one of you can provide feedback from new FILA store at Linking Road, Mumbai, it would be very much appreciated by all.
Where there is honey, bees will come, institutions will come even though they may be late, as mammoths can be expected, almost always. I have been digging institution bashing, should slow down a bit 🙂 – but seriously, when was last great stock discovered by an institution in previous bear market in India ?