ASSET LIGHT MODELS
Naveen Trivedi's top stock picks from jewellery sector
Consumers accepting these brands even in a market where they are new because now the kind of design, the kind of product differentiator which they are finding it in newer brands, the acceptance levels are very high. So that is why I would say this category tailwinds are still driving the top players to keep expanding stores.
Jewellery business shift to organised market: What's the way to do it?
The jewellery sector in India is experiencing a shift towards formalisation, with the organised market growing rapidly. Players need to focus on inventory management and customer experiences for success. Top retailers are expanding into new geographies, with a franchise model proving successful. Market trends indicate a significant move towards branded jewellery purchases.
Inox Green Energy to raise upto Rs 1,000 crore through preferential allotment, warrants
Inox Green Energy Services, which provides operation and maintenance (O&M) services to wind power operators, plans to raise Rs 800-1,000 crore through a combination of preferential allotment and warrant issuance to fund future acquisitions, according to multiple sources familiar with the matter.
As work-from-home trend declines, flexible office spaces work for employees and companies
Providing convenience and flexibility for employees on one hand, cost-effectiveness, and asset-light models for employers on the other, coworking/managed spaces are booming. Demand for such spaces is soaring in large metros and Tier-2 cities alike as companies tighten return-to-office rules.
Wait for Awfis Space Solutions to deliver stable profitability
The company has an asset-light business model and is debt-free. However, limited operating history, consistent losses, scalability of business, and sustainability of long-term contracts with clients are a few concerns.
Combo of capital heavy & capital light biz to drive operating leverage, margin expansion: Puneet Chhatwal, Indian Hotels
Indian Hotels, led by Puneet Chhatwal, showcases robust growth through strategic new contracts, capital-light models, and diversified top line expansion. The company's focus on operating leverage, digital enhancements, and new business segments sets the stage for continued success in the hospitality sector. He says: Indian Hotels' combination of capital heavy and capital light which is today at 40-60 and could grow to 30-70, 70 in favour of capital light,
ETMarkets Fund Manager Talk: Why this asset manager doesn’t see a “doom and gloom” situation for mid & smallcaps?
Sonam Srivastava says investors should adopt a cautious, value-oriented approach post-stress test results. The emphasis is on strong fundamentals, avoiding overheated valuations, and closely monitoring holdings for potential risks can benefit stability within the mid- and small-cap segments. She says: "Investors should carefully analyze the financial health and future prospects of companies inthis segment before making investment decisions."
Opportunity in short term headwinds? 4 AMC stocks with upside potential of up to 37%
While there is always a talk about how many new demat accounts have been opened every few months. But how many folios have got added in the mutual fund industry is something which does not make it to headlines. What makes a headline is just the headwinds, about new rules and regulations or a new competition coming up. But in reality, this fact is that for mutual funds houses or AMC companies, these headwinds are very minor things to handle, because they have the biggest macro tailwind of financialisation of saving, a trend which got really strong post demonetisation. Let's look at the different headwinds and some narratives around them which the AMC industry has dealt with over many years and still come out strong.
We would like to maintain gold standard of asset quality in SBI; improve upon where we left in 2023: Dinesh Kumar Khara
Dinesh Kumar Khara says: “Normally we have been seeing that we are growing about 1% to 2% more than what the growth rate in the GDP is nominal growth rate. I expect that around 14-15% growth is something which we expect within the bank. We are on track for that and hopefully we will get to see these growth numbers at the end of the financial year too.”
Russia eyeing light tank, infantry vehicle under Make-in-India projects: Rostec CEO
Rosoboronexport, the exclusive state intermediary in Russia for the import and export of defense equipment, is prepared to engage in tenders alongside Indian partners for the development of light tanks and an infantry fighting vehicle as part of the Make in India initiative, according to Sergey Chemezov, CEO of Rostec, the parent organization overseeing Rosoboronexport.
Being light on assets gives hotel chains a lift at the bottom line
In an asset-light model, instead of owning properties, hotel companies adopt the franchise route thereby reducing capital investment. Between FY15 and FY23, the average operating margin before depreciation and amortisation (Ebitda margin) of the sample hotel companies improved to 34.6% from 17.6%. The share of rooms based on management contract (asset-light model) during the period increased to 40% from around 15%.
Hotel companies show improved profitability amid rising trend of asset light approach
In an asset light model, instead of owning properties, hotel companies adopt franchise route thereby reducing capital investment. Between FY15 and FY23, the average operating margin before depreciation and amortisation (EBITDA margin) of the sample hotel companies improved to 34.6% from 17.6%. The share of rooms based on management contract (asset-light model) during the period increased to 40% from around 15%.
Asset-heavy model a challenge for Samhi Hotels in an intensely competitive market
Samhi Hotels plans to raise Rs 1,200 crore through fresh equity to repay debt and for general corporate purposes. It will also raise upto Rs 170 crore through an offer for sale
Indian Hotels remains open to opportunities but still closer to asset light model: Puneet Chhatwal
“The industry did well on leisure and leisure was really the one that drove the revival in the industry but the prosperity can only come when it is a combination of business and leisure or ‘bleisure’. That is going to come. Save for any Black Swan event, I am very convinced that these are positive days for the sector.”
SVP Global Textiles eyes debt reduction, to focus on asset-light business model
The central government has approved the expansion under a production-linked incentive scheme.
While Taj brand remains our backbone, the asset light model will continue to drive margins: Puneet Chhatwal
“As most of our growth is based on an asset light model, the management fee incomes, incomes from our old and newly re-imagined businesses like Chambers, home delivery and homestays will help us increase our margin by another 800 bps. At the end of the business cycle, we are expecting the 25% margin in the pre-Covid level to go to 33% plus. ”
Inside PVR's new playbook to grow in the middle of a pandemic
A top PVR official said that while it will continue to scout for the right properties and sign long-term leases with the developers for marquee real estate as per the current business model, the company has also had a serious relook at the business over the last two years and came up with an asset-light approach.
Grip Invest signs USD 2-mn lease financing deal with Battery Smart
Mumbai, Grip Invest, a digital platform for facilitating new-age investments, on Thursday said it has signed a USD 2 million lease financing deal with Battery Smart for electric vehicles. Through this deal, Grip Invest plans to lease 4,000 batteries for e-rickshaws, enabling the battery network provider to leverage an asset-light business model and save operational costs, a statement said.
Rishi Gupta on Fino Payments Bank's Q2 results & expansion plans
“Ours is a very asset light model in which through merchants and through mobiles, we are able to connect to millions of customers. We also offer a very unique subscription product on our savings account and current account where the customer has to pay a fixed amount for the year and he continues to get full service throughout the year.”
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