Brother,

They might expand into other categories, becoming like Amazon and Flipkart, where you can buy anything. Flipkart’s sales are ₹56,000 crore, yet they burn ₹4,800 crore. Amazon India generates ₹25,000 crore in sales but also loses money.

Imagine Blinkit, without warehouses or a pan-India distribution network, magically reaching Flipkart and Amazon’s sales levels in 10 years. That would mean ₹130,000 crore in sales from this vertical alone.

Based on these assumptions, Zomato and its subsidiaries could generate over ₹200,000 crore in sales, surpassing companies like HUL, Nestle, D-Mart, VBL, and many others. Adding Blinkit’s ₹130,000 crore would bring the total to ₹330,000 crore in sales.

With a 5% profit margin (remember, Amazon and Flipkart are losing money), they could achieve around ₹16,000 crore in profit. Using a price-to-earnings (PE) multiple of 50, their market capitalization would be around ₹8 lakh crore. This could potentially triple your investment, but it comes with significant risk. I doubt Zomato and its subsidiaries can effectively compete against BigBasket, Zepto, Instamart, JioMart, and others.

My assumptions are so absurd and exaggerated that even a child would see through them. They’re merely to highlight the irrationality of some people.

In my opinion, Zomato is unlikely to achieve substantial profits. I personally believe it will follow the path of Reliance Power, Yes Bank, or Unitech.

I urge anyone invested in Zomato to carefully consider these facts and evaluate their holdings.

thanks for insight sir. Hopefully there is nothing wrong and it’s just the business model/strategy management wants to follow.

Thanks @sameernics for the comment. Yes, I will update my Stocks & Mutual Funds. I thought the first post will be very big if I write everything.

The follows Stocks/ETFs I have which I directly invested and it accounts for 11.1% of my total portfolio.

Other than that, I have invested in two Smallcases (Value & Momentum and Growth at Fair Price) and some MFs which accounts for 10.56% and 3.57% of my total portfolio, respectively.

So the total is 11.1% + 10.56% + 3.57% = 25.23% of my total portfolio.

The remaining 25.74% – 25.23% = 0.51% is in US Stocks (Tesla, Meta, Microsoft, Apple and Amazon).

In their another video, where they compare the sharpe ratio, Momentum 150 and midsmallcap 400 momentum quality comes on top. midsmallcap 400 momentum quality has least risk and comparable returns.

Wanted to know your view about Nifty 200 momentum 30 also because this has the highest risk and least amount of returns. I’m also invested in it and rethinking.

How to Choose the Best Mutual Funds for Momentum Strategies- July (English)