Is it worth investing in Zomato IPO?
We suggest investors to stay away and wait for the stock to decline to buy. Having said that, there is little doubt that the brand of zomato is solid. However, at these levels the stock is not a good buy. The IPO had opened for subscription on July 14, in a price band of Rs 72-76 per share.
Is Zomato IPO profitable?
The IPO was to raise Rs 9,375 crore. Unlike most companies that hit the IPO market, Zomato is yet to make profits.
Is it good to buy Zomato shares?
The brokerage has a Buy rating on the stock with a target price of ₹175 apiece. Zomato said that it is in the process of divesting or shutting down its non-core businesses which were not going to significantly move the needle for shareholders in the long term.
How is Zomato IPO doing?
Zomato is offering 1.23 billion shares, valuing the IPO at 93.75 billion rupees. … For the year ended March 31, Zomato reported a loss of 8.16 billion rupees — an improvement from the previous year’s 23.86 billion rupee loss. But, the company’s revenue from operations slipped 23.46% on-year to 19.94 billion rupees.
Why Zomato is in loss?
Zomato said the losses went up due to investments in the growth of food delivery business, increased spending on branding and marketing for customer acquisition.
Why Zomato is loss making?
Zomato said the increase in losses is due “largely on account of non-cash Esop (employee stock ownership plan) expenses, which have increased meaningfully in Q1 of FY22 due to significant Esop grants made… pursuant to creation of a new Esop 2021 scheme. ‘
Is Zomato overvalued?
Not only Jhunjhunwala, but famous valuation expert Aswath Damodaran, Professor of finance at the Stern School of Business said Zomato is a money-losing, cash burning enterprise with overvalued valuation. … That said, the stock’s pricing (₹72-75 per share) makes it too expensive, notwithstanding my story,” said Damodaran.
Is Zomato a loss making company?
Food delivery aggregator Zomato reported a consolidated loss of ₹356.2 crore during the quarter ended June 30, 2021. The Deepinder Goyal-led company had posted a loss of ₹99.8 crore in the year-ago period.
Why Gaurav Gupta quit Zomato?
Gupta, who had joined the foodtech startup in 2015, was elevated as the chief operating officer in 2018, before he was named as a co-founder in 2019. His decision to step down comes days after Zomato shut down its grocery delivery and nutraceutical businesses after running pilots for months.
Is Zomato IPO a failure?
About 28 per cent of applications made by retail investors in Zomato’s initial public offering (IPO) through the unified payments interface (UPI) route were rejected, said investment bankers in the know.
Is Zomato valuation justified?
Zomato’s stock valuations are justified by the superior growth expected, the brokerage firm said in a note. … While most domestic brokerage houses have given a ‘buy’ rating to Zomato, value investors such as Rakesh Jhunjhunwala and global brokerage firm HSBC have said not to buy the stock.
Who is the owner of Zomato?
‘The brightest person in the room’: Meet Gaurav Gupta, co-founder, Zomato. Focused and passionate, but level-headed and approachable.
Why is Zomato IPO rejected?
The IPO application got rejected due to mismatch/incomplete information. The issue price is higher than the bid price.
Will Swiggy go public?
Swiggy has not formally announced any IPO plans yet. In his presentation on Tuesday, Son said Swiggy was clocking 1.5 million orders a day, and that the platform has about 20 million monthly active users. It has 1.2 lakh restaurant partners and 2 lakh delivery partners.
How was Zomato valued?
Valuing Zomato
For FY20, the company posted a total revenue of ₹2,742.43 crore. Losses were almost the same at ₹2,385.60 crore. … In valuation parlance it is often said that price is what you pay, value is what you get. Zomato proves this.