The market values growth more. Yes, JD doesn’t have significant competition except for Google (the government will always favour Indian companies). But it’s already a market leader and may have reached its peak penetration (like Colgate / Gillette).
So, it will grow in sync with GDP only.
The market is waiting for the trigger: when JD announces the plan to use this free cash flow. If it’s favourable, the market may re-rate it significantly up.
However, management has only said it will distribute the cash, but there has been NO ACTUAL ACTION.
Let’s see how this unfolds.
Not invested.
dr.vikas
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