Butterfly GANDHIMATI APPLIANCESThe co.
A small thread on how Co. hv changed over last few years🧵
👉With new & young mgt. they r aggressive in capturing market share
&
results r already visible.
@pd_log @mmvRavindra @SwarnashishC @AnishA_Moonka
A small thread on how Co. hv changed over last few years🧵
👉With new & young mgt. they r aggressive in capturing market share
&
results r already visible.
@pd_log @mmvRavindra @SwarnashishC @AnishA_Moonka
👉Online sales contribute 20%+ of total Rev.
👉Co's products r bestsellers on FLIPKART
👉If u search for mixer grinder than on the very 1st glimpse you will notice 'BESTSELLER' bagde on Butterfly Rapid Mixer grinder
👉Co's products r bestsellers on FLIPKART
👉If u search for mixer grinder than on the very 1st glimpse you will notice 'BESTSELLER' bagde on Butterfly Rapid Mixer grinder
👉Same is the result with many other products like GAS STOVES & ELECTRIC KETTLES ETC.
👉Their Rapid Mixer grinder is among the lowest priced but Good quality products.
👉Their direct competitor PRITHI costs double than that of BUTTERFLY'S PRODUCTS
👉Their Rapid Mixer grinder is among the lowest priced but Good quality products.
👉Their direct competitor PRITHI costs double than that of BUTTERFLY'S PRODUCTS
👉Daily there are an average 400-600 new ratings on RAPID MIXER GRINDER
👉Despite being a new entrant on E-COMM co has been successful in gaining market share & earn BESTSELLER badge.
Covid too has helped them as most of buyer hav started looking towards online retail.
👉Despite being a new entrant on E-COMM co has been successful in gaining market share & earn BESTSELLER badge.
Covid too has helped them as most of buyer hav started looking towards online retail.
👉Though co. doesn't share online contribution but last they mentioned around 20%.
🥘It has also launched many new products & r currently focusing on launching Premium products.
👉with the help of E-com they hv been able to spread their brand coverage to NON-SOUTH markets too.
🥘It has also launched many new products & r currently focusing on launching Premium products.
👉with the help of E-com they hv been able to spread their brand coverage to NON-SOUTH markets too.
👉They hv also inc their serviced network in Non-South markets.
👉With young mgt in control they have an aggressive target of reaching 1000crs of turnover by FY23 but internally they r sure to achieve this target quite early.
👉With young mgt in control they have an aggressive target of reaching 1000crs of turnover by FY23 but internally they r sure to achieve this target quite early.
👉Despite increase in raw material prices they have successfully passed on price inc. & do not see major issue going forw.
👉Coming to Cash flow from operations:
They hv implemented a software across all its dealer network to track their inventory level at daily basis.
👉Coming to Cash flow from operations:
They hv implemented a software across all its dealer network to track their inventory level at daily basis.
& In case inventory is struck with one dealer they channelize it to others
👉So that inventory doesn't get blocked
👉As a result they r able to inc ROI for their dealers which ultimately inc collection efficiency.
👉So that inventory doesn't get blocked
👉As a result they r able to inc ROI for their dealers which ultimately inc collection efficiency.
👉With inc. cash flows co. immediately reduced its debt & is now almost a debt free co.
👉With inc debt 16crs of benefit will directly flow towards the bottomline
Their Debtor days now stand at around 35 days & mgt is confident to sustain it.
👉With inc debt 16crs of benefit will directly flow towards the bottomline
Their Debtor days now stand at around 35 days & mgt is confident to sustain it.
👉They r so confident that they r even planning to inc capacity by investing 15-20crs
they already hv land in place & only need to Invest in Machinery.
which will give them additional topline of 130-150crs
& fr longer term (3-5yrs) they plan to acheive 1300-1400crs of TOPLINe
they already hv land in place & only need to Invest in Machinery.
which will give them additional topline of 130-150crs
& fr longer term (3-5yrs) they plan to acheive 1300-1400crs of TOPLINe
👉Now with inc. brand visibility Both through Online & offline channels they should be able to achieve the scale which they enjoyed in the past.
👉Despite Pandemic Co. has targeted to grow by 10% this year & it would with around 750crs of TOPLINE.
👉Despite Pandemic Co. has targeted to grow by 10% this year & it would with around 750crs of TOPLINE.
👍with Mcap of around 930crs its one of the cheapest among its peers which trades more than 2 times sales.
Although on P.E basis it looks quite expenses.
but with 1000crs of turnover co. is targeting to do +10% EBITDA LEVELS which r quite healthy.
Although on P.E basis it looks quite expenses.
but with 1000crs of turnover co. is targeting to do +10% EBITDA LEVELS which r quite healthy.
👍& with the benefit of operating leverage if the co. maintains the current debt levels.
👍they can easily get 6-8% of PAT margins resulting in 60-80crs of Bottomline.
👍they can easily get 6-8% of PAT margins resulting in 60-80crs of Bottomline.
👉Roce - if they are able to achieve scale of 1000crs (which they will) then ROCE can spike easily to +20%.
👍Even a 2x M.cap to sales will give inc m.cap to Rs.2000crs
🚀Peers do trade at a lot higher premium
👍Even a 2x M.cap to sales will give inc m.cap to Rs.2000crs
🚀Peers do trade at a lot higher premium
💸All this will result in great FCF generation since the do not need any large capex to grow
💥Their asset turn r as high as 6-7X
💵The co. has also dividend after a gap of 4years
which shows their intentions with minority shareholders
💥Their asset turn r as high as 6-7X
💵The co. has also dividend after a gap of 4years
which shows their intentions with minority shareholders
🍰Dolly Khana's Re-Entry is really an icing on the cake.
👌He is among the best to play momentum in earnings as well as in stock prices.
🔥with only 40 lacs shares available for Individual shareholders its gonna catch alot of scarcity premium when it becomes fancy.
👌He is among the best to play momentum in earnings as well as in stock prices.
🔥with only 40 lacs shares available for Individual shareholders its gonna catch alot of scarcity premium when it becomes fancy.
🔥Stock is already 5X from the lows but it still hv a long way to go if management is able to execute as per plans.
at the end i would say that
Butterfly is quite good though not so sure for lifetime but definitely for sometime.
NOT A RECO.
at the end i would say that
Butterfly is quite good though not so sure for lifetime but definitely for sometime.
NOT A RECO.
After Dolly Khanna , another renowned investor
MUKUL AGARWAL has been silently acquiring Butterfly Gandhimati ltd.
Stake as on 31st March 2021 stands at 0.48%
With avg buying price Rs.430/share
Investment Value - 3.7crs
Source: Annual Report
@nid_rockz
MUKUL AGARWAL has been silently acquiring Butterfly Gandhimati ltd.
Stake as on 31st March 2021 stands at 0.48%
With avg buying price Rs.430/share
Investment Value - 3.7crs
Source: Annual Report
@nid_rockz
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