A Zomato Analysis.

Hello there!
what an upward trend it is to see.
Resistance at 147 levels, Support at 135 levels.

Is it overpriced for the kind of industry it is in? well, a company that has burnt nearly $2 Billion to get to a stage where it is today, and still is in requirement of cash to survive/grow in the future, May be, Yes!
I agree market's optimistic about the future.
However, here are some problems that I think will have an impact on the growth of the company.

No Company (From DoorDash to Zomato) in this industry has figured a way out to be profitable till date.

Threat of New Entrants like Amazon Food.

The growth seems in hands, when I think the following situation favors Zomato.

1) Rise in the Per capita GDP of INDIA. (More the discretionary income, More are the chances that an Individual orders Online)
2) Digitalization - India's Internet penetration rate stood at around 50 percent in 2020, it meant that nearly half of the population of 1.37
billion people had access to internet. (Not even comparing with China now.)
3) Eating Habits - A pre-disposition on the part of the populace, to eat out. (you know, "Ghar ka khana")

The size of the food delivery market in future years will be determined by how robustly the Indian economy will grow in the next few years, how quickly digitization continues its advance in the country and if and whether we become more open to eating out than we have historically.