Monday, 24 June 2024, Bengaluru, India
The brokerage, Morgan Stanely implied a 21% increase in Zomato’s share compared to the last close at Rs 235 per share. The firm preferred Zomato and PB fintech startups over other sectors. The brokerage mentioned that all micro and macro factors are in favor of India’s Internet stock market. The market condition is currently favorable for Indian startups.
The increase in stock returns led to the focus on stock-specified selections which became important due to the operating environment, outlook, valuation, and track records. Morgan Stanley sued these points and named Zomato and PB fintech as top players in the Indian stock market. Zepto is an Instant Grocery Delivery quick commerce startup that is expected to contribute well to the Indian economy. The firm recently secured 665 million USD in a funding round co-led by the existing investors Glade Brook, Nexus, and StepStone at a valuation of 3.6 billion USD. Zepto’s latest fundraising round increased its relevance in the quick e-commerce sector.
Zomato has been playing a crucial role in the Indian startup ecosystem. Zomato is a food-tech startup that plays a crucial part in the Indian startup ecosystem. This company lately invested 48 million USD in its two subsidiaries, including 12 million USD in Zomato Entertainment and 36 million in its e-commerce arm Blinkit. Zomato acquired Blinkit in June 2022 to solidify its position in the market however, Morgan Stanely believes that blinkit will struggle to achieve profitability and may not meet current expectations. This will increase the selling pressure on the stock which can lead to good buying openings for the long-term investors of the firm.
The grocery delivery startup has been doing well for the past five quarters and has become the leading stock with a market cap of 20 billion USD and a profit of 40 million USD. The startup faced a few challenges in Q4 results and faced an 11 percent decline to Rs 183.65 in June. Last month the shares decreased by 5 percent during intraday trading to Rs 172.5. This shows the hesitation and uncertainty of investors among market fluctuations.
Conclusion:
Morgan Stanely is a foreign brokerage firm that picked Zomato and PB FinTech as top players among the Indian startups. Morgan Stanely reported a 21 percent increase in Zomato’s share at Rs 235 per share compared to the previous close. Zepto recently secured 665 million USD in a round co-led by Glade Brook, Nexus, and StepStone at a valuation of $3.6 billion. Zomato has been playing a crucial part in the Indian startup ecosystem and recently invested 12 million USD in Zomato Entertainment and 36 million USD in its e-commerce arm Blinkit. Zomato acquired Blinkit two years ago to expand its business however, the brokerage firm believes that blinkit will struggle to achieve profitability and may not meet current prospects. This will increase the selling pressure on the stock but this can be seen as a good buying occasion for long-term investors. The brokerage mentioned that all micro and macro factors are favorable for India’s Internet stock market. The market condition is currently favorable for Indian startups.
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