Indian e-commerce plays

One may argue about the valuations of the leading companies, but the fact is that e-commerce is here to stay and is fundamentally transforming the consumer landscape and buying behavior. What is the best way to play the Indian e-commerce story? Of course there are Gati's and Bluedart's - but what about "undiscovered" but listed companies. Any suggestions

 

Do you have any companies in mind ?

 

RS Software is related to e-commerce in India. But it is extremely jittery. Very volatile and unpredictable movements

 

Not an Indian company but an interesting read for those who love e-commerce and those who fear it

https://bits.blogs.nytimes.com/2015...a-conversation-with-stewart-butterfield/?_r=1

 

@Meenakshi Razdan and others.

Can this quantify as an ecommerce play?

https://www.moneycontrol.com/news/b...s-15-salesdigital-medium-by-2020_1784461.html

 

The thing with palred is that they still have to aggressively advertise their website for people to know that they exist.

 

Friends. There was a bubble in 2000, 2007 and IT and Real Estate were the ones affected. Only a few survived. Just ensure that you are invested in the right company. Compounding too works in the long run. Just be there with good stocks. Think of PSU Banks now. Nobody is even touching them. Wouldn't it be a safe bet?

 

The thing with PSU banks is that there are some who are in trouble and then there are some who are in very deep trouble. In my personal opinion bigger banks have a better chance to overcome this crisis but even the smaller banks I am not sure government would make them fall or dissolve them. Banking is more about trust and it would be nightmare for government both politically as well as economically if it lets any of it's bank to fail. One more option can be to merge smaller banks with bigger ones. I would like to know what everyone else thinks about this.

 

You forgot to include Intrasoft Technologies : The one which is most progressive of all and currently the only one which has reached to the sizeable scale in terms of revenue and profitability. Compared to Infibeam, it has double the revenue, Profit making/dividend paying and most importantly, only one tenth of valuation of Infibeam.
Read my post on the same forum:

https://rakesh-jhunjhunwala.in/foru...d-why-this-is-just-a-beginning.674/#post-2960

In my research for credible e-commerce stories, I analysed at least 10 different companies:

1) Palred : Focussed, May turn out to be a good buy but currently overvalued compared to Intrasoft.
2) Istreet : At too early an stage.
3) Intrasoft : Have written a detailed note on why this fits the bill and should be the first choice for big investors/FIIs/PEs
4) Microsec : Promoter in too many businesses, not focussed, some doubtful related party transactions in BS of funds movement from one business to other.
5) IZMO : Not a great business model. The car classified website is a flop. the auto dealer service business is a B2B having limited scalability.
6) Archies : Finally company has realised that it has to change its old way. The company has gone online focussing only on gifting and human expression business, so business will always be seasonal and scalability limited. But the brand itself is worth the whole mcap of the company. Keep under watch !!
7) Olympia : Undervalued. But too illiquid stock. Someone has accumulated it long back and and now selling shared in 100, 200 quantities at Upper circuits everyday. Other limitation is, its fully dependent on Sales at Amazon.
8) GKB Opticals: Can be an interesting company as an alternative to Lenskart. If Lenskart can be 1000 crore company, GKB deserves at least 5% (50 crore.) , but before that company & Management has to show that they are serious about the business.
9) Trent/Pentaloon/Shoppers stop: Don't know how different they are from Myntra/Jabong and whole lot of others. No special niche, too crowded a space.

 

Trent, Pantaloons and Shoppers Stop are majorly brick and mortar stores with a negligible ecommerce revenues.