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Excerpts

Lazy Argument

There are good arguments to be made against investing in Zomato at is proposed offering price, but one of the emptiest, and laziest, is that it is losing money right now.

I know that for some value investors, trained to believe that anything that trades at more than 10 or 15 times earnings or at well above book value, this argument suffices, but given how badly this has served them over the last two decades, they should revisit the argument.  

The biggest reason that Zomato is losing money is because it is a young company that is trying to take advantage of a market with immense growth potential, not because it cannot make money. In fact, if Zomato cut back on customer acquisitions and platform investments, my guess is that it could show an accounting profit, but if it did so, it would be worth a fraction of what it is today. 

Prof Aswath Damodaran

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Exchange Filings

A Tale of Two Mahindras

Kotak Mahindra Bank:

Mahindra & Mahindra Financial Services Ltd :

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Links

Linkfest: 26 July,2021

Some stuff I am reading today morning:

India @ 100 could be as rich as America & China ( Mukesh Ambani)

SC reject telcos plea on AGR recalculation (BS)

Rakesh Jhunjhunwala on Zomato valuation (Fortune)

Valuation : Zomato (Aswath Damodaran)

On REITS & InvITs ( V Balasubramaniam )

Ever Grande: The coming disaster ( Marc Rubinstein)

Why is China smashing its Tech industry ? ( Noahpinion )

How to build wealth (Warren Buffett)

Why passive investing is better than ever (Charles Ellis)

Reality Check (Anand Sridharan)

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TopClicks

Top Clicks on Alpha Ideas this Week

Here are the most clicked items on Alpha Ideas this week:

Tanla: Above Rule of 40 (AI)

DMart: Frugal Beginnings (AI)

Thoughts on the Just Dial deal ( Bhavin Shah)

Stock Talk: IB Real Estate (Phoenix Capital)

Nifty in last 20 years ( Dhruvesh Sanghvi)

Watch out below (AI)

MRF: What steady growth looks like (AI)

Syngene’s winning formula (Fortune)

Jim Chanos on Value Traps (AI)

Unilever: High Inflation Ahead (AI)

Categories
Links

Weekend Mega Linkfest: 23 July, 2021

Some offbeat reads for the weekend:

The secret history of the Tata, Mistry, Wadia feud ( Coomi Kapoor)

Why the Dalai Lama deserves the Bharat Ratna (Tsewang Rigzin)

Afghanistan: Peace of the Graveyard (M J Akbar)

Why the Canadian Left is burning down churches (Unherd)

A famine in Madagascar (Al Jazeera)

Delivery apps are killing Singapore’s food stalls (RoW)

Whats it like to be a refugee in Britain (Guardian)

Israel in meltdown over Ben & Jerrys ice cream (RT)

How Israelis & Gazans got jailed in Bulgaria (TOI)

Tiki Girl (Amanda Lee Koe)

Thread: Bal Gangadhar Tilak (Ratnakar Sadasyula)

The third attack on Pearl Harbor (ButWhatFor)

The legend of Manasa Devi (Hindu Aesthetic)

The tragic story of India’s greatest spy (MC)

5 acts of kindness of Robin Williams (Goodable)