Dusk : ASX , 2nd Sept 2022

The Company sells diffusers, oil and other easy to live and peaceful products for its Australian consumers, the consumers tend to enjoy the process and it is one of the kind here in Australia , which has a 6/10 reach , the main benefit it has it is a classy product and people tend to love it. It has 686,000 people who are attached through rewards they get discount if they buy it through rewards. The online sales are increasing and its about 27% of the total sales, this is mainly due to Covid , people like the product.

While Analysing the companies we took quiet a few assumptions, sale growing around 6-7% per year , operating profit margin stays the same despite it imports from China and US, Net profit margin – are sustainable.

The company has been growing its sales from past few years, GP margin quiet sustainable around 60-68% which is comparatively good as it provides buffer for net profit and its valuation.

The company are quiet aggressive in their expansion , opening stores every year which comes to increase of lease liability each year by almost 15%.

The company’s this year 2022 , revenue fell short as its revenue decreased by 7% as compared to 2021 , where it increased from by 47% from 2020-2021.

The company’s after our valuation has a range of around $1.14-1.50 per share which are currently trading around $2.20 a share. The company according to us has a very limited influence in the market.

Its only worth to buy company around $1.00-1.10per share range, as over that its most in the future, and as company recorded revenue loss of 7% , we are not sure about its sustainability.

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