Scuttlebutt

May 16, 2017
3

Why we bought Garware-Wall Ropes?

Posted by | Business Models, Investing Framework, Scuttlebutt, Stocks | No Comments

“Invest in businesses that buy commodities and sell brands” is a powerful idea for long-term investing propagated by Warren Buffet. This lends business the ability to pass on higher raw material cost without loosing unit volumes and retain some benefits in times of softer raw material prices. (a.k.a. pricing power)
As per Prof. Sanjay Bakshi, an attractive hunting ground for mis-priced companies is often where Mr. Market is valuing some businesses as commodity, perhaps because they belong to sectors which are labeled “commodity” for example textiles, whereas in reality some of these might have carved out a niche for themselves enjoying a strong pricing power (think Ambika Cotton)
In 2015 we got lucky when we spotted both these elements to be present in a business called ‘Garware-Wall Ropes’, a Pune based technical textile giant.

Read More
June 05, 2016
23

What makes Wonderla Holidays an amazing business?

Posted by | Business Models, Scuttlebutt, Stocks | 3 Comments

What is the idea of a full-day outing/picnic for an average Indian middle class family? Think about it, what are the entertainment options available for a family even in Metro cities on weekends or when you have some relatives visiting you from outstation?
I bet the first thing that would come to your mind would be- visiting a mall, watching a movie and then having a nice meal at the food court. That sounds good and that is precisely what everybody around seems to be doing. The only issue there could be lack of decent content which you can watch with your family.
Other than that, what else comes to your mind? Think about full-day enterntainment options for an average Indian family. Frankly not many exciting options exist that are

Read More
May 07, 2016
6

What makes Thyrocare a great business?

Posted by | Food for thought, Scuttlebutt | 9 Comments

What makes Thyrocare a great business?
I probably first got to know about Thyrocare Technologies Limited (a company into Healthcare Diagnostic) through a 2010 ET article titled ‘PE firm buys 30% in Thryocare as comapany seeks to tap radiology segment‘ and later in 2012 when Thyrocare had second round of funding  ‘Norwest Venture Partners invests Rs 120 cr in Thyrocare‘
As I read more about the company I found some very interesting pointers:

First Indian laboratory to have an IT enabled, 24×7, fully automated diagnostic laboratory
Set up covering over 2,00,000 sq. ft. floor space (a centralized laboratory)
that ensures error free processing of over 40,000 specimens and over 2,00,000 Clinical Chemistry investigations per night. (mind-boggling numbers..isn’t it?)
The unmatched speed factor is achieved through a combination of air-cargo logistics and

Read More
December 12, 2014
13

Decoding Business Model of Meru Cabs

Posted by | Business Models, Food for thought, Scuttlebutt | 10 Comments

Since a long time, I have been a loyal customer of Meru Cabs whether I am in Dehi, Mumbai or Bangalore. Being a value investor and somebody who strongly practices scuttlebutt, I generally find it hard to resist interacting with the driver. In fact most of these guys turn out to be pretty interesting and knowledgeable. Over these years, I generally found that barring the usual small complaints every employee has, Meru drivers have largely been happy with the company on all crucial parameters like getting consistent bookings, monthly earnings and overall experience.
I was in Mumbai recently when I booked a Meru from Thane to the airport using their android mobile application. (If you haven’t tried the app yet, please have a look. It is amazing as it shows you cabs around you

Read More