Rattibha

SOLUTION #SCREENER CHALLENGE 33
Vedant Fashions Ltd/MANYAVAR (Rs 1105).
Unfortunately, no one was able to resolve this.
Here is Step by Step approach 🧵 to find the solution using @screener_in 👇
@soicfinance @ishmohit1
1

If I as a business incur 70 crore on ads per annum which is 7-9% of my sales as an expense.- 1st Statement.
To find actual Sales range we can write
(Sales>=70*100/9.1 AND
Sales <=70*100/6.9)
131 results ❗️
Used 6.9 & 9.1 to make sure not to miss close approximation range.
2

As per below statement & @ishmohit reply we can infer its a High Margin business. I think min 20% OPM & 10% NPM.
(Sales>=70*100/9.1 AND
Sales <=70*100/6.9) AND
OPM>20 AND
NPM last year>10
We narrowed down to 24 results❗️
3

Now if you closely follow @soicfinance & @ishmohit1 they always advocate businesses with -
High Quality,
Growing,
Fundamentally strong,
Strong Return Ratios &
No Solvency / Sustainable debt.
Let's apply minimum of each of the criteria so that we don't miss anything.
4

We got 10 results ❗️
Note -> I didn't took any historical ratio/parameters in order not to miss any recent listing which may not have any history.
5

Now just looking at the above 10 results we know the business is Vedant Fashions ltd.
Why ⁉️ 7-9% Adv spend can likely happen in only few sectors & most probable is Retail. We can look at few others lesser probable stocks as well Ambika Cotton, TV Today, Rainbow, Kitex
6

Where to check for Advertisement Spend❓
At @screener_in type-in stock name lets say TV Today. Towards bottom open latest Annual Report/DRHP.
🔎Other Expenses go to detailed table for Other Expenses.
Check Sales Promotion/Advertisement/Business Promotion/Publicity
7

So we found TV Today spends ~ 6cr/yr on Advertisement. Similarly if you want you can check for other stocks but it would be futile exercise as they may not spend more than few lakhs..
Lets check out Vedant Fashions Ltd.
8

We concluded the answer is Vedant Fashions but most important aspect of #screener writing is cross-verifying each & every statement.
When we check @screener_in we see it has only DRHP (as newly listed).
9

Open the DRHP & check Advertisement/publicity/sales/business/promotion expense under Other Expenses ~69.35 Cr (FY 20) & 66.7 Cr (FY 21).
For more proof
🔎Advertisement
Page 31, 144, 266
This concludes our verification !
10