Largest mobile phone retail chain in West India and in Maharashtra, and the 3rd largest in India, among our peers, retailing a wide variety of mobile phones, accessories and other electronic items.
Differentiated COFO and FOFO Models with our Local Partners Approach which have helped us scale our operations.
Established track record of operations and understanding of diverse markets, particularly tier II and tier III and beyond cities.
A broad product mix with focus on mobile phones including pre-owned smartphones and a strong procurement model
Consistent track record of financial performance and growth
Experienced promoter and management team with strong domain expertise.
The company derives a significant portion of its revenue from operations from retailing mobile phones. During Fiscals 2026, 2025 and 2024 the company derived 86.18%, 87.58% and 88.31% of its revenue from operations, respectively, from retailing mobile phones. Any economic slowdown or other factors that affect the mobile phone industry, and accessories and electronic items industries including those that impact or reduce consumers ability to purchase the company's products, could adversely impact its business, financial condition, and operating results.
The company is significantly reliant on its arrangements with top 10 Suppliers for procuring mobile phones, accessories and other electronic items. The amount of purchase of traded goods from the company's top 10 Suppliers was 79.09%, 89.42% and 88.38% of its purchase of traded goods during Fiscal 2026, Fiscal 2025 and Fiscal 2024, respectively. Failures on the part of the Suppliers to supply, or a delay in supply of traded goods from the company's top 10 Suppliers, could have an adverse impact on its reputation, business, financial condition, cash flows and results of operations.
The company derives a significant portion of its revenue from operations from the company's stores in the state of Maharashtra. As of March 31, 2026, the company had 458 stores in Maharashtra constituting 91.05% of its total stores. During Fiscal 2026, Fiscal 2025 and Fiscal 2024, the company derived 89.09%, 92.32% and 94.07% of its revenue from operations from Maharashtra. Accordingly, the company is subject to risks arising from changes in political, social and economic conditions of Maharashtra which could have an adverse effect on its business, financial condition, result of operation and cash flow.
The company primarily focus on its COFO Model and FOFO Model which have helped the company scale its operations, both in terms of number of stores and revenue from operations. The COFO and FOFO Models cumulatively contributed 74.19%, 78.03% and 77.79% of its revenue from operations during Fiscal 2026, Fiscal 2025 and Fiscal 2024, respectively. If the company franchisee-led COFO and FOFO models are not successful in the future, or does not grow at the same rate or at all, or the stores which the company operates under COFO and FOFO models closes, then it may adversely impact its business growth and prospects, financial condition and results of operations.
The company's business is working capital intensive, primarily on account of inventory required to be stocked at its stores and warehouses. The Company proposes to utilize Rs. 2,413.47 million out of the Net Proceeds towards its incremental net working capital requirements for Fiscal 2027 and Fiscal 2028. The company may need to obtain additional financing in the normal course of business from time to time as its expand the company operations and any failures on its part to effectively manage the company's working capital requirements may requires it to raise additional financing and any inability to do that may result in an adverse effect on the company's business, revenue from operations and financial condition.
One of the company's Independent Directors, Asit Chimanlal Mehta is associated with the entities which are associated with securities market. By virtue of his association with the entities which are associated with securities market, he may be subject to certain stringent obligations under securities laws. Any failures to comply with the requirements of securities law may result in proceedings or adverse orders being passed against him which may have an impact on his reputation which could in turn impact the company's reputation, business and prospects.
Some of the company's listed peers have historically performed better in relation to certain key performance indicators such as Gross Profit margin, Operating EBITDA Margin, PAT Margin, ROE, ROCE and ROCE (post tax). Its cannot assure you that the company will in the future perform better than its peers in relation to these key performance indicators or the other key performance indicators disclosed in this Red Herring Prospectus. Accordingly, the investors must relies on their own examinations of the company's financial and operational parameters as well as the key performance indicators of the Company as well as of its peers for the purposes of investment in this Offer.
Some of the company's lease / leave and license agreements are not duly stamped and registered in accordance with the requirements of applicable law. As of the date of this Red Herring Prospectus, out of 424 leased properties that the company operates, the lease / leave and license agreements for 381 properties requires registration. Out of these 381 properties, the lease / leave and license agreements for 299 properties are duly registered, and the lease / leave and license agreements for 82 properties are not registered. Such agreements may not be accepted as evidence in a court of law which may potentially affect its ability to enforce the company's rights and remedies under these agreements, and its may be required to pay penalties for non-registration and non-payment of or inadequate stamp duty.
The Company has in the past entered into related party transactions and may continue to do so in the future and its cannot assure you that the company could not have achieved more favourable terms if such transactions had not been entered into with related parties and that such transactions will not have an adverse effect on its financial conditions and result of operations.
The Company's Price to Earnings ratio at the upper and lower end of the Price Band is at a premium as compared to the average Price to Earnings ratio of its listed peers. The company cannot assure you that its will in the future perform better than the company's peers in relation to the Price to Earnings ratio. Accordingly, the investors must relies on their own examinations of accounting ratios of the Company for the purposes of investment in this Offer.
