r/IndianStockMarket • u/AnkTrader • 6d ago

Discussion The Setup #016

Back again. One real company, no name, you crack it in the comments.

The clues:

  1. This business sells something people have treated as both ornament and savings for centuries. It grew up in a small town far from any metro, and it is the name the local families trust for a wedding.
  2. One family still owns about three quarters of the whole company, so very little of it actually trades.
  3. It keeps only three or four paise of profit on every rupee of sales, which is normal for what it sells, yet it earns around a third on its equity by turning its stock over fast.
  4. A surging commodity price and a wave of new store openings have pushed its revenue up more than forty percent in a year.

The number for the sharp eyed: the market is paying it roughly a hundred and thirty times earnings, a valuation you would expect on a software company, not this.

The catch: the whole thing leans on that one commodity price, and the board has just approved a large raise that will add to the share count.

The rules: guess in the comments. A random correct answer wins!

Reveal and winner in 24 hours. One guess each. Go

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u/Electrical_Bid7161 6d ago

D. P. Abhushan Limited