My view on Matrimony is that jeevansathi is loosing steam. They have tried multiple models (freemium etc), burnt a lot on marketing for several years but have not gained market share.
Investors are asking tough questions to infoedge (during conf calls) and they can not continue to burn endless money on jeevansathi. The management is also showing signs that they have to stop at some stage.
Matrimony has stood against relentless competition. That shows strong moat. Once the competitive pressure reduces matrimony will get re-rated as their margins will improve substantially.
Further, they are cautiously playing out new bets on mandap, luv.com and investing wisely. We have to see how these bets will turn out going forward.
Disclosure – Invested and hence biased. Not a SEBI registered analyst.
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