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The unanswered part of KILLER PUZZLE (Kewal Kiran Clothing) : Read Here
Background:
On Sep 25th 13 Prof. Sanjay Bakshi wrote on Kewal Kiran Clothing (Killer Puzzle)
I have tried to dig deeper into the story.
I will be sharing the probable answers for the questions raised in my next post on KKC.
Views invited
Good analysis Jatin
Thanks sir
Nice in depth analysis of the company. But don’t you think its the conservative approach of the company that has given it a strong financials.
Vikas agreed its indeed the conservative approach that has helped build such a balance sheet, however my intention behind above exercise was to get into details as to why isn’t the franchisee network expanding the way it should and I got the answers.I never said I am bearish or I dislike the company, will share my thoughts on the company in my second post
Don’t know if KKC is good or bad, but love your way of analyzing a stock. Eat stocks, drink stocks, sleep stocks – that what comes while reading your blog – AMAZING
Thanks for reading my blog.. Cheers!
I tend to agree with you Jatin. Wonderful excerpt as well. Most of the K-LOUNGES around my place (Heart of Hyderabad) have also shut down. Also have enquired in places where most of my relatives stay are in business of branded clothing wear. They hail from Central-East India and have said that Killer is finding difficult to sustain its earlier run. I seriously doubt the current premiums to the stock, there is flurry of brands available at different price points now. Beating out the competition and ensuring mind space would become tougher.
Thanks Kishore. The outcome from above research is just – KKC’s franchise model in not viable in Metros coz of high rentals & KKC is over conservative when it comes to franchise. It would have been premature for me to write off the investment idea just based on this research. I will be sharing my thoughts on KKC
(growth drivers and valuations) in my second post.
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