The downward trend in Zomato’s valuation is impacting the growth plans of the company, which requires capital to expand and may hinder the growth of the business. On the other hand, Raymond’s businesses’ transformation towards lower debt and expansion into adjacent markets is a step in the right direction. Small ticket industries such as hotels, auto ancillaries and QSR are expected to perform well, with consumers not facing pricing pressures. Comparing Zomato and Swiggy’s valuations, as both have been impacted by the government’s intervention and private equity investors, is not too naive.
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