Daily Brief Consumer: TSE Tokyo Price Index TOPIX, Rize , Virtuoso Optoelectronics, Watches of Switzerland, Deliveroo, Guess? Inc and more

• Even after the TSE’s request for a P/B increase, it is not possible to raise valuations simply on the expectation of a P/B increase without improving profitability.
• Most companies have cash allocation challenges. Companies with higher profitability will accumulate even more cash on hand, so higher level of shareholder return will further positively impact ROE and ROA.
• Some of the companies that have reduced valuations include those with relatively high ROE and ROA, so there are small-cap stocks with reduced valuations and increased investment opportunities.

• Rize, a Singapore-based agritech startup, has secured US$14 million in a series A funding round co-led by Breakthrough Energy Ventures, GenZero, Temasek, and Wavemaker Impact.
• The company plans to use the funds to boost its presence in other markets like Indonesia and Vietnam.
• It also aims to increase its team of agronomy experts to over 100. Rize’s platform gathers key agricultural information needed for sustainable farming.

• Virtuoso Optoelectronics (VOEPL IN)  is a contract manufacturer company engaged into production of ACs, Lightings and other equipments. The company is renowned for supplying ACs to Voltas.
• The company has grown sharply over the last five years and has been engaging in constant capex. However, it does struggle in converting its earnings to cash.
• Among the forensic checks, it nets off receivables and payables/advances, the exact nature of these line items cannot be commented upon. VOEPL also faces high cost of borrowings

• WOS is a luxury watch and fine jewelry retailer, with a focus on selling Rolex and other luxury brands
• Despite strong financial performance and earnings growth, the company’s stock price has dropped significantly
• Market misunderstanding of the impact of Rolex’s acquisition of Bucherer has led to WOS being undervalued, presenting a buying opportunity for investors.

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.

• Deliveroo has seen a 30% increase in its stock since last year, making it a compelling investment opportunity
• The company’s focus on independent restaurants results in higher average order values and better unit economics
• Deliveroo is well-positioned to achieve its 2026 targets, with potential M&A and index inclusion catalysts in the near future

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.

• We are reiterating our Buy rating, $37 price target and projections for Guess?
• with the company announcing 1QFY25 (April) results after the close on Thursday.
• We believe 1Q, which included material upgrades in the domestic retail store base, the acquisition of contemporary leader rag & bone, continued European expansion and what we believe were cautious buys from the domestic wholesale segment, will set the stage for a strong back-half and FY26, but will result, beyond further share repurchases, in limited top and bottom line upside for 1Q.