#zomatoipo
#Zomato Analysis 3/8/21:
Grab a cup of coffee and enjoy my notes:
Zomato Shareholding as on July 22nd:
Promoter holding: 0%
Institutions:12.76%
Non institutions: 83.67%
(58% holding by foreign companies)
Positives First:
*Almost debt free
(1/n)
#Zomato Analysis 3/8/21:
Grab a cup of coffee and enjoy my notes:
Zomato Shareholding as on July 22nd:
Promoter holding: 0%
Institutions:12.76%
Non institutions: 83.67%
(58% holding by foreign companies)
Positives First:
*Almost debt free
(1/n)
2/n #Zomato
*Massive growth potential, Scalable.
*Current Ratio: 9.3 (Excellent)
*Strong Network in place
*Hyperlocal data
*Strong brand image
*B2C Food delivery business
*Hyperpure B2B business
*Paid Zomato Pro Membership
*Cloud Kitchen opportunity scalable
*Massive growth potential, Scalable.
*Current Ratio: 9.3 (Excellent)
*Strong Network in place
*Hyperlocal data
*Strong brand image
*B2C Food delivery business
*Hyperpure B2B business
*Paid Zomato Pro Membership
*Cloud Kitchen opportunity scalable
3/n #Zomato
*All in one platform business for food restaurant search, menu, ordering, payments, online track delivery, feedback, customer support.
*35 subsidiaries (including Zomato's abroad businesses)
*Possibility to replicate their food delivery success to new businesses.
*All in one platform business for food restaurant search, menu, ordering, payments, online track delivery, feedback, customer support.
*35 subsidiaries (including Zomato's abroad businesses)
*Possibility to replicate their food delivery success to new businesses.
4/n #Zomato
Negatives:
*Doesn't own any property.Working from rented properties only.
*Poor Cash flow negative as of now
* Poor fundamentals as of now. Zero #ROCE, Zero #ROE.
*Uncertain of profitability in near future.
Negatives:
*Doesn't own any property.Working from rented properties only.
*Poor Cash flow negative as of now
* Poor fundamentals as of now. Zero #ROCE, Zero #ROE.
*Uncertain of profitability in near future.
5/n #Zomato
* #Amazon as a cash rich competitor can drain Zomato's ability to maintain good margins
* Lack of Promoter and huge equity capital of 784 Crores.
* 22% of income is spent on advertising
* Company has detailed all risks inc future equity dilutions for growth.
* #Amazon as a cash rich competitor can drain Zomato's ability to maintain good margins
* Lack of Promoter and huge equity capital of 784 Crores.
* 22% of income is spent on advertising
* Company has detailed all risks inc future equity dilutions for growth.
6/n
Summary: It is true that current #fundamentals are poor for #Zomato.
However, this has a business model that can generate cash flows if company can continue to grow and ward off competition. Inability to predict near future will keep stock volatile!
High Risk, High Reward!
Summary: It is true that current #fundamentals are poor for #Zomato.
However, this has a business model that can generate cash flows if company can continue to grow and ward off competition. Inability to predict near future will keep stock volatile!
High Risk, High Reward!
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