Palred Technologies is a holding company that has two main lines of business. Through Palred Online Technologies, it owns and operates the e-commerce portal called LatestOne dot com. Latest One is a specialized e-tailer that deals mainly in mobile accessories.
For more info check, http://palred.com/
To check out the e-com portal, http://www.latestone.com/
NUMBERS - THE LATEST
Market cap: 73 crores CMP on Day18 Dec2016: Rs 89 BV: 48
Revenue FY16: 38 cr Net profit FY16: Nil FV: 10
POSITIVES
1. Operations of latestone.com seem to have stabilized, with revenue of 10 crore plus for the last 4 quarters
2. Quarterly loss which was in the range of 5 crore per quarter has come down to 2 crore per quarter
3. In December 2016 LatestOne entered fashion accessory category with sunglasses and wallets
4. In November 2016 LatestOne completed registration of 1000 dealers on its B2B portal
INTERESTING INFO
1. Palred was earlier known as Four Soft. In October 2013, the company sold its logistics business for around USD 40 million
2. The company declared and distributed a special dividend of 29 rs. per share to around 20,000 investors. This action demonstrates that the promoter cares about the retail investors.
3. Equity capital of the company was reduced from 35 crores to around 8 crores. In times when promoters are expanding equity rampantly, here is a company that has reduced equity. This shows that the promoter values the equity of his company.
4. Founder and MD of the company, Palem Srikanth Reddy has been buying the shares in small chunks through open market transactions since last few months.
NEGATIVES - POSSIBLE RISKS
1. Though latest one has gained traction in terms of business and revenue, it is yet to make profits.
2. There is very little information about the other ventures of the company
MY TAKE
Years 2013 to 2015 witnessed a massive interest in technology and online ventures, most of them in e-commerce. Billions of dollars from various parts of the world were chasing India focused ventures. Venture Capital chasing ventures was unprecedented. In that backdrop we need to view Palred.
Here we have an entrepreneur who started and scaled up this specialized niche e-commerce company with approx 30 crores. This is probably one of those rare listed pure play e-com company. Meaning, a company that sells products absolutely the e-way.
As of now as only the e-com venture latestone.com is operational, let us look at Palred from that prism. If this was like any one of those other venture capital funded companies that are mostly privately held, we could have easily seen 10 - 20 million dollars invested in this company, if not more. When one has easy money, and that too lots of it, there is a tendency to do stupid things.
Vast majority of the e-com ventures in the indian landscape are either still loss making after sucking millions or have gone bust. Under such circumstances, we have here a listed company that is available for less than 100 crores, while holding cash of 30 crores. Company has narrowed its losses and is on the verge of break-even and could even move into profitability over the next 2 - 3 quarters. This company has real products and paying customers.
Right now there is only latestone.com; however looking at Srikanth Reddy's past and history, he will most definitely start off another one or two more e-ventures. There is also the technology company that also could be grown and taken to the next level.
Lastly I remember reading somewhere that Palred promoter admires Amazon and its founder. If he can make Palred even 1% of Amazon, then we have a 10 or even 20 bagger on hand.
Palred Technologies has tremendous multibagger potential!!
Disclosure: I own shares in Palred.
For commercial collaboration, consultation and JV ideas;
you can contact me via zorbayogi9@gmail.com
Important Note: Potential multibaggers are those stocks which have potential to give 100 - 500% profits. Obviously such returns take time. Probably 3 - 4 years or more. Short term volatality is the reality of the stock market and that will always happen. Short term movements(upside and downside) are impossible
to predict. Only invest funds that you will not need for the next 3 - 4 years. As long as you buy a stock for the right reason and are convinced about the future prospects of the company, there is no need to worry if the share price goes down and stays down for a period of time after you buy; provided you have followed the cardinal stock market mantra BUY LOW.
Very important note: The objective of this blog is to share knowledge and info about multibagger ideas/opportunities. Neither is this trading website nor an analyst website nor a Buy/Sell call website. For stock market success, always do your home work, own analysis and make your own decisions.
For more info check, http://palred.com/
To check out the e-com portal, http://www.latestone.com/
NUMBERS - THE LATEST
Market cap: 73 crores CMP on Day18 Dec2016: Rs 89 BV: 48
Revenue FY16: 38 cr Net profit FY16: Nil FV: 10
POSITIVES
1. Operations of latestone.com seem to have stabilized, with revenue of 10 crore plus for the last 4 quarters
2. Quarterly loss which was in the range of 5 crore per quarter has come down to 2 crore per quarter
3. In December 2016 LatestOne entered fashion accessory category with sunglasses and wallets
4. In November 2016 LatestOne completed registration of 1000 dealers on its B2B portal
INTERESTING INFO
1. Palred was earlier known as Four Soft. In October 2013, the company sold its logistics business for around USD 40 million
2. The company declared and distributed a special dividend of 29 rs. per share to around 20,000 investors. This action demonstrates that the promoter cares about the retail investors.
3. Equity capital of the company was reduced from 35 crores to around 8 crores. In times when promoters are expanding equity rampantly, here is a company that has reduced equity. This shows that the promoter values the equity of his company.
4. Founder and MD of the company, Palem Srikanth Reddy has been buying the shares in small chunks through open market transactions since last few months.
NEGATIVES - POSSIBLE RISKS
1. Though latest one has gained traction in terms of business and revenue, it is yet to make profits.
2. There is very little information about the other ventures of the company
MY TAKE
Years 2013 to 2015 witnessed a massive interest in technology and online ventures, most of them in e-commerce. Billions of dollars from various parts of the world were chasing India focused ventures. Venture Capital chasing ventures was unprecedented. In that backdrop we need to view Palred.
Here we have an entrepreneur who started and scaled up this specialized niche e-commerce company with approx 30 crores. This is probably one of those rare listed pure play e-com company. Meaning, a company that sells products absolutely the e-way.
As of now as only the e-com venture latestone.com is operational, let us look at Palred from that prism. If this was like any one of those other venture capital funded companies that are mostly privately held, we could have easily seen 10 - 20 million dollars invested in this company, if not more. When one has easy money, and that too lots of it, there is a tendency to do stupid things.
Vast majority of the e-com ventures in the indian landscape are either still loss making after sucking millions or have gone bust. Under such circumstances, we have here a listed company that is available for less than 100 crores, while holding cash of 30 crores. Company has narrowed its losses and is on the verge of break-even and could even move into profitability over the next 2 - 3 quarters. This company has real products and paying customers.
Right now there is only latestone.com; however looking at Srikanth Reddy's past and history, he will most definitely start off another one or two more e-ventures. There is also the technology company that also could be grown and taken to the next level.
Lastly I remember reading somewhere that Palred promoter admires Amazon and its founder. If he can make Palred even 1% of Amazon, then we have a 10 or even 20 bagger on hand.
Palred Technologies has tremendous multibagger potential!!
Disclosure: I own shares in Palred.
For commercial collaboration, consultation and JV ideas;
you can contact me via zorbayogi9@gmail.com
Important Note: Potential multibaggers are those stocks which have potential to give 100 - 500% profits. Obviously such returns take time. Probably 3 - 4 years or more. Short term volatality is the reality of the stock market and that will always happen. Short term movements(upside and downside) are impossible
to predict. Only invest funds that you will not need for the next 3 - 4 years. As long as you buy a stock for the right reason and are convinced about the future prospects of the company, there is no need to worry if the share price goes down and stays down for a period of time after you buy; provided you have followed the cardinal stock market mantra BUY LOW.
Very important note: The objective of this blog is to share knowledge and info about multibagger ideas/opportunities. Neither is this trading website nor an analyst website nor a Buy/Sell call website. For stock market success, always do your home work, own analysis and make your own decisions.
