Sir, I implore you to read their financial statements.

Zomato posted a standalone PAT of around 1400 crores and Q4 standalone PAT was ~400 crs. Even if you exclude other income (treasury), Zomato is PBT +ve with growing profit pools. See screenshot below:-

On the point of cash flow, attaching their cash flow statement:-

• PG Electroplast Limited targeting 46% growth in group operating revenue for the next financial year.
• Company aims for a consolidated net profit of at least INR 200 crores.
• Anticipated 44% growth in the product business for the upcoming financial year.
• Focus on developing cost and product leadership for room ACs and washing machines.
• JV partnership established with Goodworth Electronics for TV and hardware business.
• Jaina Investments close to INR 6 crores invested in the TV business, potential additional INR 5-6 crores.
• Jaina provides sourcing capabilities and credit from Chinese vendors for TV kits.
• Potential update on IT hardware PLI orders post-election mentioned.
• Plastic molding margin at 7.5% and electronics at 2%, driving growth in the product business.
• Expected turnover of INR 2400 crores in the product business for the next year.
• Seasonality shifted, with RAC business starting late January and extending to late June.
• Actively engaged in discussions with clients for new products and opportunities.
• High interest in RFQ and RFP.
• Capex set at around INR 370-380 crores for infrastructure development.
• Optimistic outlook for revenue growth in ACs, washing machines, and new categories.
• ROCE target set between 15-16% pre-tax for new projects.
• No immediate plans for high-margin, low-volume businesses like aerospace.
• Aiming for a slight improvement in pre-tax ROC E of about 20%.
• Emphasis on growth and seasonality influencing the target of achieving a 25-26% ROC E by FY ’26 or ’27.
• Cash balance of about INR 180 crores and a gross debt of INR 360 crores reported by PG Electroplast Limited.

Well, nothing rocket science. Past 6-12 months stock performance overlaid by RSI and Stochastic parameters. Point is to buy stocks that have done well in the preceding 6-12 months…

What I can add is also this – its largely irrelevant what exact methodology you use to rank stocks if you want to do factor investing. I back-tested multiple strategies and they all gave market-beating returns…the challenge is to stay put with the strategy over the long term which is not easy.

Heritage has seen growth in Odisha. Atleast in Bhubaneswar, I saw a lot of their products. But the pricing is off. Their buttermilk is Rs. 20 compared to Rs. 15 of Amul.

This might be a little overblown:-

GoV per store per day (avg. Q4) = 9.2 lacs (mature stores would have upwards of 10 lacs)
Total GoV in a year = 33.58 crores
3% commission = 100 lacs
Salary + Rental (Annual) = 25 lacs + 25 lacs = 50 lacs ( i have assumed 6-7 employees… 20 seems too high)

Overheads = 15 lacs
Net income to franchise owner = 35 lacs

Some points to note:-

1. average GoV per store per day likely to be significantly higher for mature markets of Delhi. At 15 lac per day (assumption) for mature stores, net income bumps upto 60 / 70 lacs
2. GoV per store per day itself is trending up for the company

3. At current net income levels, payback period for franchise owners is under 2 years (even if I include deposit which is refundable)
4. As categories get added and Blinkit take rates go higher, some of it will percolate down to franchise owners, strengthening the model

Key Monitorable

1. For q-com to succeed, GoV for MT / GT have to reduce in key urban markets – NCR, BLR & Mum – so keep an eye out for SSSG for Dmart, Reliance Retail, etc… the SSSG has to show stagnation or decline – same for Amazon GoV