MY views on matrimony, as of today:
While reading Matrimony concalls starting 2017, I realized extremely painful truth.
The story line in 2017 was exactly the same as today (2024), that is :
- We have leadership in matchmaking business
- Growth in business will come
- Target addressable market is huge
- High Operating leverage in business, meaning dispropnate increase in profitabilty with slight increase in revenue.
- Marriage Services business, a joker in the pack, will grow and get profitable.
However, 7 years have passed none of it has materialized. In fact, things that have detoriated include:
- Competitive intensity has multipled, causing high marketing expenses, eating away most of the revenue growth
- Customers never traded up from basic 3 month / 6 month pack
- Growth has been extremely tepid.
- Valuation derated to half from the IPO price.
Its difficult to be a long term investor and bear this pain.Those who believe in the story have to have patience and go through difficult time. It looks to ME that last bull in matrimony has left the market.
However, past may not be the mirror of future. Things may turn up well in the future, as the underlying story STILL remains the same with reasonable valuation.
Disclosure - Invested and hence biased/ blind. Not a SEBI registered analyst.
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