Shadowfax currently operates in the delivery of simple consumer goods. however, relying on this sector and fewer client base poses a significant long-term concentration risk. We cannot simply assume that partners like Meesho or Flipkart willnot continue to expand indefinitely. Our primary objective should be utilizing capital to strengthen our business fundamentals. For instance, the pharmaceutical distribution channel remains underserved with few major players. While it requires significant investment, implementing cold-chain logistics and advanced supply chain technology would make Shadowfax more efficient and provide a sustainable competitive advantage in the long term.
I’m so glad you found it helpful Kashish. I’ve been enjoying testing out my MBA coursework through some practical equity research in the cold-chain sector lately. I also owe a lot to Zerodha Varsity for their great content, which helped me connect the dots. Thanks for the encouragement.
The concentration risk is real. What's your view on 8% leakage figures? Is it too high or too low? How do you think will the figure move as they scale.
To be fair, logistic OS is more BAU than a moat, in our limited opinion.
Shadowfax currently operates in the delivery of simple consumer goods. however, relying on this sector and fewer client base poses a significant long-term concentration risk. We cannot simply assume that partners like Meesho or Flipkart willnot continue to expand indefinitely. Our primary objective should be utilizing capital to strengthen our business fundamentals. For instance, the pharmaceutical distribution channel remains underserved with few major players. While it requires significant investment, implementing cold-chain logistics and advanced supply chain technology would make Shadowfax more efficient and provide a sustainable competitive advantage in the long term.
Thanks for weighing in, Ankur. That's helpful.
I’m so glad you found it helpful Kashish. I’ve been enjoying testing out my MBA coursework through some practical equity research in the cold-chain sector lately. I also owe a lot to Zerodha Varsity for their great content, which helped me connect the dots. Thanks for the encouragement.
That's so great to hear. Do keep sharing what you learn with us through your substack writings. Happy to read them and learn from them.
Thanks a lot. Will definitely keep sharing my learning here.
Thank you :)
The concentration risk is real. What's your view on 8% leakage figures? Is it too high or too low? How do you think will the figure move as they scale.
To be fair, logistic OS is more BAU than a moat, in our limited opinion.