You are absolutely right.
18% in the Front end entity which gets a multiple on the GMV. For eg: Pharmeasy’s B2C business is around 1800Cr run-rate now. And the company was asking for valuation of 36000cr when they were doing IPO rounds. That’s 20X.
Flipkart is already at 1200cr run-rate. You can assign whatever multiple you want and see if there is value. If you assign say 10X (half), then SS value for the same is 20% of 12000cr which is ~2400Cr. Not to forget that it is growing very fast and reported 45% QoQ growth in the quarter gone by. Next year GMV is anybody’s guess hence.
There is also Retail B2B business which is also valuable and profitable already. Growing very fast.
EV now is just 600cr. Not to forget that SS will be EBITDA profitable in FY24 (my guess), debt free and has 300cr Cash. Whereas Pharmeasy did 4000cr+ loss in FY22 as per this article and has a huge debt on the books.
Disclosure: Invested, so my views may be biased
This is not an investment recommendation. Please do your own reasearch.
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