Daily Brief Consumer: Maruti Suzuki India, China Education Group, Jumbo Interactive, Tapestry Inc and more

• Companies in India have disclosed their shareholding pattern as of end-March in April. There are companies with significant float changes from end-September and/or end-December.
• The changes in free float could be reflected in domestic and global indices over the next few weeks and months resulting in action from passive trackers.
• Depending on the date that the shareholding was published, there could be 14 stocks with passive inflows from global trackers while 7 could see passive outflows in May.

• China Education Group (839 HK) has turned more attractive after a valuation retreat and the return of reported and adjusted net profit to a positive trend in its 1H24 result.
• Increase in the proportion of undergraduate studies, a better subject specialisation mix, higher accommodation revenue, and a rise in international education will drive unit student revenue.
• More capacity upgrades will allow for a steady increase in student enrollment. Management expects adjusted EBITDA margin to stay stable in the next few years.

Key points

• Jumbo Interactive Ltd (ASX: JIN) operates in the online lottery industry in Australia, with a 20% market share and offering digital Australian lottery tickets through its mobile app and website.
• The company, founded in 1995 by CEO Mike Veverka, is highly cash generative and has a favorable duopolistic market structure, positioning it for potential stock value growth and expansion as more customers shift to online channels.
• JIN is viewed as a defensive investment option with strong margins and cash generation potential, particularly through its SaaS/Managed Services offering, making it an appealing choice for investors looking for long-term growth.

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• Decline in TPR’s stock price after acquisition announcement
• Author believes acquisition will benefit Tapestry Inc financially and strategically
• Author sees dip in stock price as buying opportunity and remains bullish on TPR’s long-term prospects

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.