“What I buy is vital, but the price at which I buy is crucial. Assume Zomato is valued at Rs 99,000 crore and Tesla is valued at $600 billion or $6 trillion. These stocks will not be purchased by me “According to Jhunjhunwala.
The phenomenal performance of Zomato on the stock exchanges has failed to impress ace investor Rakesh Jhunjhunwala.
In a webinar hosted by Equirus, India’s Big Bull wished Zomato well but stated that he would not invest in its stock.
He elaborated: “What I buy is important, but the price at which I buy is crucial. Assume Zomato is valued at Rs 99,000 crore and Tesla is valued at $600 billion or $6 trillion. These stocks will not be purchased by me “According to Jhunjhunwala.
He claimed that he did not need to attend every party in town. “The hangover isn’t until the next day!”
On its first day of trading, Zomato rose 65.59 percent to Rs 125.85, giving it a market capitalization of Rs.98,731.59 crore. This is despite the fact that some brokerages questioned the IPO’s values of Rs.65,000 crore.
One-third of Jhunjhunwala’s investment is now in unlisted space, and he has also invested in a new airline, according to him. He claims that one of the lessons he’s learned from startups is to over-anticipate developments, particularly in technology firms.
“Changes do occur, but at a far slower rate than expected,” he explained.
Young entrepreneurs, according to Jhunjhunwala, have a great mindset. He described the young entrepreneurs’ speed and dedication as “unbelievable.” Opportunity, frugality, corporate governance, technology, and the flexibility to evolve, he argued, are what a company requires. Jhunjhunwala stated, “The race is not going to conclude tomorrow.”
He merely hopes that people focus solely on business concepts that generate wealth rather than accepting foreign currency and squandering billions of dollars, he remarked.
“Who designed Zara and Walmart? The company concept is more significant than the funds “he stated.
“I’d like to see a cash flow model, but valuations will have to come later.” Business valuations should not take precedence over business strategy and long-term viability, he said, adding that people are overly hopeful about how quickly new-age businesses would generate income.
“Today, Zomato has valued at Rs 1 lakh crore. But when will Zomato receive the Rs 3,000 crore? “It’s less significant how long it takes in the stock market than how long it lasts,” he remarked.
