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Imagine a stock that went from just 150 to 1,000 barely in a year, then grazed nearly 76% from its lifetime high. Most people would run away after such a fall. But one legendary Indian investor is still holding in his portfolio and the stock name is Weber Global. So why is he still waiting on it and what should retail investors like us learn from this story?
Let's find out. Web Global runs a unique omni channel retail model selling jeweleries, accessories and lifestyle product mainly through TV shopping channels and digital platforms. It connects over 13 khold across USA, UK and Germany through SOPLC, SOP TJC, idle word and SOPLC Germany along with the website likelc.com and tjc.co.uk.
UK jewelry segments contribute around 66% of sales while SAS series and lifestyle products contribute 34%. TV channels contribute 61% of sales while digital platform contribute 39%. Geographically USA leads to 59% of sales while Germany grows to 12%. We global relies heavily on its in-house brands over 31 names like Rapsidi, Ilana and Homesmart which already contribute one/ird of revenue with a target of 50% by F27.
Its product portfolio is massive with 25,000 plus items and 14,000 new design launched every year. Customer base is also expanding. Seven lakh unique buyers, four lakh new in just one year and an average purchase of 23 items annually. Retention steady at 41%. The company is vertically integrated sourcing from 30 plus countries but manufacturing mainly in India and China.
Its Jaipur facility alone produces 5 million pieces annually. This low cost setup keeps gross margin strong. Bever global stock has up and down a lot because there is a low demand in USA and UK where high inflation has reduced people spending on jewelry and lifestyle items. At the same time, the company is spending more money on digital growth and a new business buys which has reduced profit margins for now.
These short-term problems have created some doubt among investors but the management is confident about its long-term growth. Now discuss financials. We global has a market value of about 38,000 cr. This stock is trading at the P ratio of 23 while its 5 years median P is 38 which means that the stock is now cheaper compared to its past valuation.
The company's debt to equity ratio is just 0.17. showing that it has a very little depth and a strong balance sheet. In the TTM, Web Global reported its highest level sales of 3,437 cr but the net profit is 163 cr which has not grown much compared to earlier years. The main reason is that the net profit margin has reduced.
So even though sales increased, profit did not rise as much in shareholding pattern. Here's something interesting. While the stock looks volatile, the strong hands are clearly in control. Nearly 80% of the company is owned by promoters, FIS and DIIS. And even legendary investors Mr. Vijia who has been quietly increasing his ST from 1.95 to 2.03%.
That might sound small but it signal conviction. The so-called weak hands the retail public holds barely 20%. So the question is when big investors are holding tight are retail investor missing something. Now discuss technical chart on the technical side global has seen a big fall. The stock is down nearly 76% from its lifetime high.
Right now the price is back to the same level we last saw during co times. For the past few months, it has mostly been trading in a range between 300 at the bottom and 500 at the top. But even at these levels, this stock is still about 20% below its recent bottom. Remember this, this is the purely chart pattern study which for the educational purposes.
This is not a buy call. That's it for today's analysis. If you found this video helpful, please hit the like button, share it with your friends and subscribe to Trading with Har for more in-depth stock analysis. And please let me know in the comment below which stock you'd like me to next analyze. We'll back in next video. Till them happy investing.
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