Day Trading Stocks & Futures

Coforge ....... New ATH
 
Zomato IPO
Inspite of all warnings about very high valuations for a consistent loss making SW interface, retailers have already applied 200% of their quota.
PROs :
- Potential growth among Indian consumers (increasing mobile usage, under penetrated food delivery in various cities across)
- Deep pockets ready to burn much more cash to acquire, retain customers
- Negligible debt
- Very high interest among FIIs.

CONs:
- Consistent loss maker since Day1
- High cost to acquire/retain customers
- Seeking valuation(MCAP ~60000 Crores ) as high as sum of all listed restaurants, food chains in India.
- Easy replicable business model for a new entrant
- MOAT is only the loyal customers who can be lured for heavy discounts, better service by competitors.

Still scratching my head what did I not see in this offer which other retailers have seen and applied.
 

Similar threads