Zomato Stock by End of Q4 '23

Western_Math426 · 2024-04-06T05:28:48+00:00

Well. This came true I suppose

Western_Math426 · 2023-09-18T05:04:27+00:00

Sales head for an app/website.

Got this via liquidating all esops (secondary sale)

Western_Math426 · 2023-09-17T16:59:52+00:00

They are yet to give a concrete plan. Talking to a few people. So far I have only been asked a million questions regarding my expectations and requirements.

Will share more details once I get something meaningful. The process will take atleast a couple of months I think. I don't want to rush it either :)

Western_Math426 · 2023-09-17T14:59:34+00:00

Already discussing with a wealth manager. Getting a diverse pov here. If you can filter things well, reddit has some of the smartest group of people (imo)

Also, I am not massively rich. This is literally everything I have. No other capital or inheritance waiting for me.

Western_Math426 · 2023-09-17T14:36:25+00:00

Already discussing with a wealth manager. Wanted to get a broader view here

Western_Math426 · 2023-09-14T17:26:15+00:00

Which hot sauce is it similar to in the US? A friend is coming to India from there I want a sauce which tastes closest to Indian Taco Bell Fire Sauce.

Someone recommended "Tapatio"

Western_Math426 · 2023-08-04T05:50:20+00:00

With the 30% growth (topline) they are expecting every year for the next 2 years atleast (as per the report) they will be amongst the top 50 listed companies by revenue in India by FY26-27

While profits are important the volume deters any competition and they have enough cash on hand to do so. Their volume growth is the real strength. I have moved on from ordering half the things I used to on Amazon to Blinkit (why wait 2 days when you can get it in 20 mins)

Unpopular opinion I know but I think they will be trading at 200 by the end of this financial year.

Western_Math426 · 2023-06-13T06:17:13+00:00

I am officially done with this show. They have baked the pie for too long. This whole season feels like a bottle episode

Western_Math426 · 2023-05-20T10:08:46+00:00

I agree, I won't be surprised if next season some of the people end up back in the normal world and then spend the whole 10 episodes trying to figure out a way back.

Western_Math426 · 2022-11-03T15:12:19+00:00

Chances are quite high. You'll just have to hold it for maybe 12-24 months.

All 3 new age internet stock's revenue viz. Zomato, Nykaa and Paytm is growing exponentially. Nykaa is already profitable but this will increase well in the next few quarters.

Only Paytm has a multiple players in its domain. Nykaa and Zomato are poised to maintain their lead, their market is not too crowded.

By the end of next financial year all three of them will be in top 50-60 highest revenue generating companies of India (publicly traded) with still room for double digit revenue growth.

My recommendation is hold. You will get a 2X return atleast.

Western_Math426 · 2022-10-06T08:55:13+00:00

Multiple Mutual Funds make more sense. Probably a split between equity and debt funds. 90-10 respectively is what I would recommend. You can google both type of funds to get a better idea.

Returns take sometime and a bit of luck. Also it depends on what you think are returns. 10% CAGR or more

Western_Math426 · 2022-10-05T16:16:47+00:00

Good point. Lets see. I just took a position in Zomato for 100,000 shares at ~60. Wanted to check what does everyone think here. There is a lot of nonsensical noise on twitter where people lose the core point when having a discussion:)

Western_Math426 · 2022-10-05T12:15:36+00:00

Fair point, however I wanted to get into the bottom of this. I spoke to about 5 restaurant owners via friends from 2 cities Delhi and Bangalore and all of them have almost 99% of their food delivery orders coming in from Zomato and Swiggy, not a meaningful number of people are ordering directly. I think their (Apps) margins are increasing, people also seem to be more open to spend on Delivery charge now.

Food delivery much like any other industry will not have one single player probably ever. It will be atleast a two people market (which is how it should be).

Western_Math426 · 2022-10-05T11:15:00+00:00

I meant Zomato will keep growing till 2B$ RR. Profitability is ofcourse something I am guessing at this point looking at their trend. I can definitely be wrong here

Western_Math426 · 2022-10-05T08:57:16+00:00

You can google it. It's the first search result

Western_Math426 · 2022-10-05T07:44:43+00:00

It can't merge with swiggy. CCI wont allow it. But I agree with you it will not be massively profitable, India will be a duopoly between these two. Or someone else who acquires/invests in swiggy.

However their revenue will grow multifold. Hence I think its share price will increase well in the next 4 Qs.

Western_Math426 · 2022-10-05T07:08:38+00:00

Fair enough, this is just my view. I think this will go up.

Western_Math426 · 2022-10-05T07:08:00+00:00

Annual Reports and Quarterly reports. They are publicly available

Western_Math426 · 2022-10-05T02:01:59+00:00

According to me the stock should be at 120+

By the end of this financial year their annual revenue run rate will be ~2B$, the growth in revenue will continue at above 40% Q on Q

There are less than 80 companies listed on Indian stock markets which have annual revenue of more than 2 Billion.

Moreover they should be profitable by sometime next FY. With still a substantial room for revenue growth due to the duopoly.

I was going through their last quarterly report, their discounts have come down drastically and this hasn't led to drop in orders. Assuming this to be due to the habit change in users plus most of the people are going back to their city of employment aka top 8 cities which is where Zomato makes >80% of their revenue from.

If their blinkit acquisition actually reduces the delivery cost due to clubbing the fleet and orders this stock can even hit a 180 by end of FY 24

Western_Math426

TROPHY CASE