Last week Westlife Development the master franchisee of McDonald’s in the south and west India declared their annual numbers.
We analyzed the numbers and are not at all happy with them . its been years and years of losses and sales are marginally higher to around 900 crores. Marcet cap is around 4000 crore and we now getting nervous about potential returns from this stock.
We have accumulated this stock at around 160-175 and started selling it around 250 with last lot sold at 220 .
So for last one month markets are flirting at 9000 level to 9300 level and we are booking profits bit by bit.
We have booked some profits in Adani , Rain , Westlife ,Escorts , Dewan housing etc and sitting on 15 % cash as of now. Some of the profits booked from small and mid cap like associated alcohol etc are plowed back into Reliance and Tata Motors.
So, it’s tough times as — “I will tell you the secret to getting rich on Wall Street. You try to be greedy when others are fearful. And you try to be fearful when others are greedy. –Warren Buffett”
We are big fans of theme parks but the problem in India is either they are too expensive like wonderla holidays or the quality of theme park is way below the standards (Let’s not name the small theme parks with the shitty crowd and stuff).
So market still stares at 9000/- levels and our earlier targets of 9400-9600 are still intact.
However, again the mid cap and small cap stocks are hitting roughs and whenever stocks like Lycos starts hitting upper circuit we get skeptical. Stocks like Delta corp are up 70 % from Demonetisation and Brexit low. How come they are commanding such (more…)
One of the toughest businesses in the world is airlines. Risks are too high and profit forecasts always go for a toss. There are long talks by Warren Buffett and Charlie Munger on why airlines are the bad business and their stocks even worst. (more…)
Jubilant food works is the master franchisee of Domino’s in India
Business- Selling world best pizzas to the second largest populated country.
It’s one of the Best business at the right time and right place, Dominos have now more than 1000 outlets in India. Selling millions of Pizzas daily. One of the key USP of dominos is it covers a large area by making more business in delivering the pizzas then selling in their joints.It helps them to cover a very wide area.