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Prathamesh Adhikari's avatar

My thoughts -

- Having an asset-light business in the Winery when your overall moat is limited to Brand, grape quality, Wine Mix etc is not a cool thing to do; especially when grapes are grown in a limited area in India

- Promoter diluting equity and also taking debt, while making a decent CFO and on top of giving dividends, doesn't fit the bill

- Recently, they started giving a lot of discounts and increased the margin for distributors when they started feeling the heat from Fratelli. They have a stronger brand and a huge market size and trend opportunity, but this is a short-sighted strategy. They should focus on growing the category rather than starting a discount war

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Dhruv Maniyar's avatar

Think I agree with everything you said. I've struggled to get a lot of promoter comfort, and yes you make a great point on them being asset light. I'm bullish on the space but agree with all the concerns you raised.

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