Zomoto’s bumper listing will give a boost to Info Edge investors, too, since they are group companies. Eventually, Info Edge’s Rs 4.7-crore investment in Zomato is now worth Rs 15,000 crore, Kapil Goenka, Director, CM Goenka Stock Brokers, said in an interview with Moneycontrol’s Kshitij Anand.
Edited excerpts:
Q) The euphoria around Zomato’s IPO and listing helped the stock price. But what should investors do now? Does it make sense for new investors to buy it now?
A) What we feel that it is necessary to book profits in the stock market, so holding a stock with time consideration will always benefit more to investors. Regarding Zomato, investors who successfully got the allotment in IPO, should fully book profits and wait for sometime to buy again.
And, for those investors, who missed out on getting an allotment should not immediately jump and buy this stock.
They should also wait for it to get around Rs 100-105 levels to buy and look for very long term approach afterwards.
Tough Zomato’s valuation is abnormally high but this kind of online business is sure to grow in Indian markets over next many many years.
What we can analyse from rising Amazon stock price in the US Market, same we could able to see in these online biz in Indian markets too.
Q) What does the Zomato listing mean for Info Edge investors? Zomato’s market cap has already surpassed Rs 100,000 crore mark on listing day.
A) Zomoto’s bumper listing will give a boost to Info Edge investors too since they are group companies. Eventually Info-Edge Rs 4.7 crore investment in Zomato’s is now worth Rs 15,000 crore.
So, Info-Edge’s Books too has been growing networth. Any investment in Info Edge shares if below Rs 5000 will surely be a good bet and in long term we can see it be a 5-digit stock price.
Q) How does Zomato fare on price to sales basis among global peers?
A) Zomato’s fare on price to sales basis among global peers are sound. Zomato’s has higher orders per restaurant globally. But, its global peer have high number of tie up with restaurants and high number of Annual orders per annum.
So Zomato has huge potential to grow as compared to its global peers like Grubhub, Takeway.com, Doordash, Delivery hero, Meituan, etc.
Q) Is strong listing gains driving retail investors to the IPO party? What are your views?
A) Yes strong listing gains driving retail investors to the IPO party. There has been past few months wherein IPO were not coming and whatever little were coming were not performed well on listing.
So the much awaited IPO rally has given all shaken confidence of investors back on track which eventually helps secondary market also to grow in terms of new investments.
Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
