Monish Babri just crossed 5% in a small Turkish retailer with a real estate kicker. The stocks already up nearly four times this year. So, is there still an opportunity here or are we late to the party? This video is for education and entertainment only, not financial advice. The company is Gimat Mazluk ticker GMT. Pabri disclosed just over 5% after a late September purchase, making him the single largest declared shareholder in a company where ownership has always been highly fragmented. So, what is Gimat? Well, it's a hybrid. On one side, a cash generating grocery format called Gimat Gross in Ankara. On the other, a significant property development attached to its flagship site. The origin story mi the company grew out of a cooperative base of a roughly 1100 small merchants and wholesalers. It went public by regulatory accident, not because the founder wanted to cash out. So, let's start with the retail side. In early 2025, they opened a second gross in Kacharan. This time using a rental model rather than owning the building. They also leased additional warehouse capacity to support the expansion. Headcount jumped from the mid 300s to high 400s by March. So this wasn't window dressing, it is real operational growth. Now the catalyst, Gimatalena, they are building an open air mixeduse complex on almost 30,000 m of freehole land adjacent to the flagship store. Land above the ground area is roughly 50,000 m with two underground parking levels for 8 to 900 vehicles. Think Radio Avenue, office units, and building customer base next door. Here's what makes the structure interesting. It is a land for share deal. The contractor funds all the construction costs and Gimmat contributes the land. No depth, no cash train, no exposure to Turkeykey's brutal interest rates. In return, the company will own 56 to 57% of the finished project, better than the originally expected 50% including full ownership of the parking structure and a significant slice of retail and office space. Permits were obtained. Construction started in August 2024. Structural work progressed through mid 2025 and management targets delivery around late 2025 to early 2026. But remember this is still an unfinished project. So how do we value it? The amount share of the rentable space is approximately 25,000 square meters. Now look, I don't want precision to three decimal points here. I want a number that makes sense for an investment decision. It needs to be obvious. Market evidence from online listings in the area supports the range and I anchor to a conservative midpoint that implies roughly 2.3 billion laser for their state. I run that down to an even 2 billion to maintain a margin of safety in the sum of the parts analysis. So let's say 2 billion las for the gimmatar and the project and I repeat again this is not an exact figure it's just an estimate. The investment needs to make sense with the 2 billion figure also what they do with this asset matters. Keeping it inside Gimat means standard corporate tax of 30%. Moving it into a rich structure could improve after tax economics substantially by decreasing the tax rate to 10%. They could sell it outright though I don't think that's the plan. So strategy will directly shape realized value in display. Now let's go back to grocery engine. The operational metrics are actually quite strong. Inventory days are roughly 50. That is efficient for retail. Working capital is negative meaning suppliers effectively finance the inventory. leverage is low with net depth near zero. In the first half of 2025, gross margin was about 20.8%, a bit margin roughly 8.4% and EITA margin about 9 and a half%. Net margin looks noisy because of Turkish inflation accounting. So I focus on gross profit and a bit for the real signal. The return on capital employed has averaged around 20% which is respectable though not quite Costco's 30% range. Free cash flow historically has been positive but turned negative in the first half of 2025 probably due to the new warehouse and store investments. It is expected during expansion. Now if you want the full breakdown that is all available on my Patreon. I also cover RAS comprehensively there along with every other company in my portfolio. Once you subscribe you get immediate access to a library of over a year's worth of research and analysis. The link is in the description. Please check it out. So let's pull together a conservative sum of the parts here. If I annualize first revenue to roughly 4.2 and 2 billion LRA and apply a steadystate debit of 10% I get approximately 470 million LRA of ET net depth is negligible so call it an even 400 million apply a cautious 6 and a half times multiple to that grocery business and you land near 2.6 billion las at the real estate project at 2 billion and a conservative fair value comes to around 4.6 6 billion laser. And again, this is just a conservative estimate. I'm not trying to get to the decimal points here. So, here is the problem. This stock is up nearly four times year to date and currently trades at a market cap of almost 6 billion. That sits well above my conservative fair value estimate. So, maybe I am missing something. But this would have been an outstanding investment at the beginning of the year when the market cap was around 1.5 billion. At those prices, it was a clear triple waiting to happen. And it delivered even more than that. But that opportunity in my opinion is gone. Could Gimat compound for years? Well, it is possible, but retail in Turkey is brutally competitive. Heavyweights like Migros and BIM, they are everywhere. Gimat still needs to prove it can replicate its Ankara success in other cities, especially in his stumble. Alignment also matters. The chairman's disclosed stake is not even 1% of the company if that hasn't changed. I would like to see meaningful insider buying in the open market before I get excited about management's long-term commitment. So, this becomes an opportunity cost decision. Remember, we only got the disclosure when Papans crossed 5% threshold. We don't know when they built the position, but I am confident their cost basis is substantially lower than today's price. For me, RAS still trades far below fair value on both tickers and Coca-Cola effect looks attractive for long duration holders at current prices. I can keep buying RAS for 30 cents on the dollar. Great stories aren't always great entries. So, with Gimat, I don't plan to do an investment here. But what would make me buy Gimat? Well, first proof that the Kuran store delivers the same unit economics as the flagship. Second, a clear expansion road map beyond Ankara. Third, visible insider buying from management. Fourth, evidence they will choose the most taxefficient structure for Arena like the read option I mentioned earlier. If those signals improve and the stock pulls back at least 30% from current levels, I will be looking again. Until then, this is a watch and learn situation for me. And obviously, I am pretty biased against the retail sector. Bottom line, the quality characteristics are there. The RNA catalyst is real, but the market has already priced in substantial value. So, I will not be cloning this position. If you want to access everything I have written on RACK and other companies I follow, please check out my Patreon. The link is in the description. Thank you for watching and if you found this useful, do YouTube thing and I'll see you in the next one. Bye.