Matrimony.com Ltd – Lot of opportunity to grow

Dear @Amit2saxena This is a good writeup.

I believe Matrimony is a very undervalued bet. For 1100cr, one gets 350cr of cash and a business that generates 50cr of annual PAT. In the last one year, the Company added 20cr of revenue but that unfortunately went into provisioning for the Google payments. In the next one year, the next 20cr should help grow to 65-70cr PAT. This makes it valued at <20x PE for a true consumer company with very high ROE. Should competitive intensity reduce the Company is likely to see a lot of leverage flow from the 200cr of advertising expense (that does not add to sales), which could result in disproportionate returns.

Cheers

Safe to assume, I and everyone I know may have a vested interest in everything I post about. Nothing is a recommendation