Follow up crisp note on Vasa Retail

I was thinking about the company from a big picture standpoint and the runway, opportunity size.

Placed in an industry of 10,000cr (only India), growing at 6%. 90%+ is unorganised and seeing a strong shift from unorganised to organised after GST. Current revenues FY17 only 23cr, FY18(upto Oct) 18cr. Market cap ONLY 30cr. Available at roughly 1.3x sales. Makes 30%+ return ratios. This is all when Oxford is not even properly baked in and Indian opportunity size is huge. Middle East can be massive, which is already 30-40% of revenues. Besides, as at Oct2017, had 5-6cr of cash equivalents, no long term debts (all short term and working capital).

Price when posted – INR49.5 (15May2018). Market cap – INR30cr.

Disclaimer: This note is not a research report but assimilation of information available on public domain and it should not be treated as a research report, investment advice or Buy/Hold/Sell recommendation. I am not registered with SEBI under the (Research Analyst) Regulations 2014 and as per clarifications provided by SEBI: “Any person who makes recommendation or offers an opinion concerning securities or public offers only through public media is not required to obtain registration as research analyst under RA Regulations”. It is safe to assume that I might have the company in my portfolio and hence my point of view can be biased. Investors are advised to do their due diligence and consult a qualified financial advisor prior to taking any actual investment or trading decisions.

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