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What does Zomato listing mean for Info Edge investors?

Jul 25, 2021 11:05 AM IST

At the closing price on Friday, Zomato is trading at a multiple of 49.6 times the FY21 revenues. This is significantly higher than Doordash’s EV/Revenue valuations of 15 times, says Divam Sharma of Green Portfolio.

Considering a market cap of Rs 67,000 crore, Info Edge looks attractive on valuations. The cash generated by the company from Zomato IPO can be deployed for further business growth and supporting new ventures, Divam Sharma, Co-founder of Green Portfolio said in an interview with Moneycontrol’s Kshitij Anand.

Q) What should investors do after Zomato's listing? Buy, sell or hold?

A) Investors should now wait to buy Zomato at these valuations. The IPO has seen a bumper listing and this is one of its kind listings in the Indian markets. Valuations in comparison to global peers also look expensive.

Let the valuations settle down. Zomato’s capability in the future to leverage its moats of technology, high market share, and high addressable market potential will lead to wealth creation beyond these valuations.